Common Auction Terms and Phrases
Absolute Auction- A property is sold to the highest bidder with no minimum, no reserves. This type of auction presents the greatest opportunities for the buyer.
As is, where is- property is sold as it is where it is.
Buyer's Agent- A real estate agent who is employed by and represents only the buyer in a real estate transaction, regardless of whether the commission is paid by the buyer or by the seller or through a commission split with the listing agent.
Buyer's premium- an additional charge, usually expressed in the form of a percentage of the high bid, to the purchaser of the property.
Earnest money- A small percentage of the listing price in the form of a cashier's or certified check that is presented by a bidder when he or she registers on auction day. The earnest money will be credited towards the purchase price.
Market value- the price a property brings on auction day--what someone is willing to pay.