Key Auction Terms Every Bidder Should Know

If you're new to BRG's online auctions, it's possible that you may want a quick guide for auction terminology. BRG makes auction and site terminology simple and easy to follow. Let's get started....

As-Is, Where-Is

The auction house is selling the property in its present condition and location without warranties as to the condition and/or fitness of the property for a particular use. In short, it basically tells the buyer, "what you see is what you get."

It is the bidder/buyer's sole responsibility to examine, judge, and inspect the property for their own protection. If the bidder has questions or wants clarification on the property it is their sole responsibility to ask the selling party. The onus is on the bidders to do their research and due-diligence. Generally speaking, it is an indication that the auction house will not grant return privileges to the bidder. Also known as "As Is" and "In Its Present Condition."

Auctioneer

The person with whom the seller engages by contract to direct, conduct, and/or be responsible for the sale of a lot, lots, entire estate, etc. by auction. BRG's online auctions do not have an auctioneer, per-se. The system is fully automated.

Bid

A prospective buyer's offer of a price he or she is willing to pay to purchase the property at auction. Bids placed in an auction, whether online, in-person, in absentia, or by telephone are legally binding if the bidder's offer is accepted (hammered).

Bid Increments

Bid increments refer to the amount a bid must be raised during bidding. As the current bid value increases, so do the increments. BRG's increments are posted on our terms and conditions page.

For example, if the current bids are between $1 to $20, the bid increment is $1 each bid ($1, $2, $3, $4, ...). Once the lot is in the $100-$500 range, the bid increments may increase to $10 each bid ($110, $120, $130, $140, ...).

Buyers Premium

The buyers premium is a percentage added on to the winning bid amount. For BRG, the buyers premium spreads the cost of doing business (computer servers, programming, cataloging, staffing, photography, administration, etc.). The buyers premium should always be in the terms and conditions for the auction. All reputable auction houses will disclose this information.

Catalog

BRG's auction catalog is in an online format. The catalogs include lot descriptions and multiple photographs (which are part of the description). Descriptions include dimensions, details about the lot, provenance (if known), and any other important details which bidders should be made aware. The purpose of the catalog is to help bidders make informed decisions about whether they wish to bid and how much they wish to bid on any given lot.

Commission

The commission is a fee charged by the auction house (in this case BRG) to the seller (consignor, estate, etc.) for providing services. It is usually a percentage of the gross selling price of the property established and clearly outlined in the agreement/contract prior to the auction.

Competing Bid

Competing bids are bids that are placed by other bidders for the same lot. The auctioneer (in this case BRG's software) accepts those bids. Since all bids and bidders identities are masked for the public no one really knows what anyone else's maximum bid may be for any given lot.

For example, if someone has placed a maximum bid of $100 on a lot, but there are no competing bids against that $100, the lot will sell to that bidder for the lowest dollar amount.

However, if someone placed that same $100 bid on a lot and someone else comes along and places a competing bid of $25, the bidding mechanism starts and a high bid of $26 (or the next bidding increment) will be in favor of the bidder whose maximum bid is $100. If no other competing bids are placed on that lot, the winning bidder will purchase the lot for $26. If other competing bids are placed, then whomever is the final and highest bidder when the clock runs out will win the lot (see note about extended bidding below).

Estate Sale

Many people erroneously confuse "estate sales" with all personal property sales (moving, tag, downsizing, etc.). The term "Estate Sales" is strictly the sale of personal and/or real property left by a person after his/her death.

Extended Bidding (Soft Close)

BRG's online auction software is programmed with an extended bidding feature. Extended bidding (also known as "soft close") will automatically extend the closing time of any given lot based on bidding activity within a designated period prior to the scheduled closing time. In this case, it's within the last five minutes of any lot's closing. This enables any and all interested bidders to increase their bids, if they so choose. Once all bidding on the lot ends, the clock will run out and the lot is hammered to the highest bidder.

Hammer Price

The hammer price is the selling price of the item established by the last and highest bidder. It is acknowledged by the auctioneer before closing the lot in an online auction or dropping the hammer/gavel in a live, in-person auction.

Item Number

Due to the shear volume of inventory that BRG processes, BRG uses item numbers (our version of a SKU) for individual lot and order tracking. Each lot is assigned an item number which appears on the cataloged item description page. While other auction houses may use lot numbers for references, BRG relies on item numbers.

Lot

An auction lot is an individual item or grouping of items offered as a single unit in an auction. In other words, a painting might be one single lot. Likewise, a set of china or crystal stemware might be single lot (even though it's comprised of 6, 10, or 12 pieces). It is being offered as a single unit.

Each BRG auction numbers the lots in the order they appear in the auction catalog -- starting with 1 and working up to the last lot in numerical order.

Maximum Bid

A maximum bid is the highest bid amount that you place on any particular lot. In BRG's system, you may increase your maximum bid at any time while the lot is still live/active. At no time will the bidding system go to your maximum bid unless there are other competing bids placed against that lot. In other words, if the opening bid is $1, you place a maximum bid of $50, and there are no competing bids placed on that lot, you will be the high bidder and win the lot at $1.

Online Auction

An online auction is an auction which is not conducted in the presence of a live, traditional bidding audience gathered in one place with an auctioneer to calls the sale. The auction itself is for an online bidder audience to place bids through their computers, tablets, and/or smart phones.

On-Site Auction

An auction being performed on the premises of the property being sold. In other words, if BRG is running an on-site auction, the items remain in the original home/estate during the online auction and the pick-up after the auction concludes is run at the same home/estate.

Off-Site Auciton

An auction being performed at a location away from the original site of the property being sold. BRG may remove the lots from a home/estate and run the auction at one of our facilities. This is an off-site auction.

Outbid

When you are outbid it simply means that someone else has placed a higher bid. You are no longer the high bidder. Depending on the auction timing and your ability to register your bid, you may increase your bid at any time.

Preview

Previews are a period of time when an auctioneer allows prospective bidders a chance to look over and inspect the lots offered for sale. Since most auction lots are used, bidders should check them for defects, losses, and other conditions which may affect the amount the bidder wishes to bid on the lot. BRG offers previews for select auctions. All preview details will appear on the respective auction overview or landing page. Most auctions run on our site for seven to ten (7-10) days. When in-person previews are not an option, bidders have ample time to virtually inspect the lots through the online catalog and detailed photography.

Sales Tax Exemption

For dealers and resellers who are non-taxable, a copy of the tax exemption certificate must be uploaded to their user account and approved/authorized by BRG. If BRG does not have a copy of the certificate, applicable sales tax will be charged to the buyer.

Visit our FAQs page to learn how to add your tax exemption certification. Please note that BRG's team will need to review the form and approve in the system before any tax exemption status may be applied to your account.

Starting Bid / Reserves

The term "reserve" is the minimum price the seller is willing to accept for a lot. Many auction houses hide or blanket their reserves, so bidders do not know what the minimum required bid is on the lot.

BRG's online auctions do not have formal "reserves." Rather, in the spirit of full transparency, BRG uses "starting bids" or opening bids. Bidders know at the very beginning of the auction the minimum dollar amount necessary to open the bidding on that particular lot.

Terms and Conditions

BRG's terms and conditions outline the requirements and expectations between the buyer/bidder and auction house. Please be sure to read all the terms and conditions before bidding in any auction.

Traditional or Live Auction

A traditional auction is one which is conducting in front of a live audience who is congregated at one physical location. There is an auctioneer who calls the bids and will hammer the lots to the winning bidders.

Well, there you have it! These are the most commonly used terms used by BRG and our bidders. If you are new to BRG, we invite you to also see our FAQs for some additional information which may be helpful to you.

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