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.