Auction Glossary

A professional designation awarded by the National Auctioneers Association (NAA) to auctioneers who have completed advanced education and demonstrated high standards of industry practice. The CAI credential is widely recognized as one of the most respected designations in the auction profession and signals a serious commitment to ethics, knowledge, and continuous improvement.

A published listing of all lots available in an auction event, including item descriptions, photos, condition notes, and lot numbers. Online catalogs allow bidders to browse and favorite items before the auction opens.

Learn More: Auction Management | Bidding Experience

The process of preparing items for auction — writing lot descriptions, capturing photos, assigning lot numbers, noting condition, and entering everything into the auction management system. Thorough cataloging is one of the most direct levers an auctioneer has on final sale prices. Accurate descriptions and quality photos give bidders the confidence to compete, which drives higher bids and better sell-through rates.

Learn More: Auction Management | Bidding Experience

A bid announced by the auctioneer that does not come from an actual participant in the room or online — sometimes used to protect the reserve price or create the appearance of competition. While technically permitted in certain jurisdictions when properly disclosed, chandelier bids are broadly considered unethical and are prohibited by professional standards organizations including the NAA. Transparent reserve practices and honest bid disclosure are always a better path to bidder trust.

Learn More: Security and Reliability

The rhythmic, fast-paced vocal delivery used by live auctioneers to call bids and keep the sale moving. The chant fills the space between bid amounts with transitional phrases and filler words, creating energy in the room and keeping bidders engaged. It's a practiced skill — auctioneers train for years to develop speed, clarity, and stamina. Many take pride in their unique style.

Learn More: Auctioneer Software | Simulcast Auctions

A staff member who records bids and buyer information during a live auction. In online and simulcast events, clerking functions are often handled by the auction software automatically, logging bid activity in real time.

Learn More: Simulcast Auctions | Auction Management

The scheduled date and time at which bidding on an auction lot ends. In timed online auctions, lots typically stagger their closing times to reduce last-minute traffic spikes. Closing times may extend automatically due to auto-extend bidding.

Learn More: Timed Online Auctions

An auction format in which all lots close at exactly the same time. Unlike staggered closing, a concurrent close compresses bidding activity into a single moment — creating urgency but also putting pressure on bidders juggling multiple items simultaneously. Soft close (auto-extend) can be applied to concurrent close auctions to prevent sniping, though managing many lots with auto-extend at once requires thoughtful configuration.

Learn More: Timed Online Auctions | Auction Management

A written assessment of an item's physical state, typically including visible defects, wear, damage, missing parts, and operational notes. Condition reports are especially important for estate pieces, industrial equipment, vehicles, and any high-value lot where condition significantly affects bidder willingness to pay. Providing thorough condition reports reduces post-sale disputes and builds the kind of bidder trust that drives repeat participation.

Learn More: Auction Management | Bidding Experience

The process by which a seller (consignor) entrusts items to an auction house to sell on their behalf. The auction company receives a commission from the proceeds. Consignment terms, commission rates, and reserve requirements are agreed upon beforehand.

Learn More: Auction Management | Estate Sales

The individual or organization that provides items to an auction company to sell on their behalf. The consignor retains ownership of their goods until the hammer falls — at which point the auction company facilitates the sale and remits proceeds to the consignor, minus any agreed-upon commission. Consignors set the terms of their consignment up front, including reserve prices, minimum bids, and payout timelines, all documented in a listing agreement before the event goes live. Also called a vendor or seller.

Learn More: Auction Management | Estate Sales | Payments and Invoicing

The legal point at which a buyer takes physical possession of an item purchased at auction, marking the formal completion of the sale. Once constructive receipt occurs, responsibility for the item — including risk of loss or damage — transfers to the buyer. For most auction types, constructive receipt happens at pickup; for shipped items, it typically occurs upon delivery. This is especially important in equipment, vehicle, and high-value asset auctions where insurance and liability are significant considerations.

Learn More: Auction Management | Payments and Invoicing

A complex auction format in which items are offered individually, but a single bidder can also place one overriding bid for the entire group — or a defined combination of lots — that trumps all individual bids. If the group bid is high enough to outweigh the sum of the individual bids, the group bidder wins everything. Continental auctions are used when assets have more value together than separately, such as equipment packages, matched sets, or entire business inventories.

Learn More: Auction Management | Event Solutions

The electronic system used to accept and settle winning bidder payments via credit or debit card. Auction platforms integrate with payment gateways to securely handle card-on-file authorization, invoice payment, and fund disbursement to sellers.

Learn More: Payments and Invoicing | Security and Reliability

The connection between auction software and external business systems — such as accounting platforms, CRMs, inventory tools, or shipping services — enabling automatic data sync and reducing manual entry. Robust integrations save time and improve accuracy.

Learn More: Auction Integrations

The research and verification a buyer performs before placing a bid — including reviewing lot descriptions, condition reports, photos, and attending preview or inspection when available. In equipment, industrial, and real estate auctions, due diligence is especially critical, since most sales are final and bidders are responsible for evaluating what they're buying. Auctioneers who provide clear descriptions, honest condition notes, and accessible preview periods make due diligence easier — and that pays off in higher bidder confidence and fewer post-sale disputes.

Learn More: Bidding Experience

An auction format where the price begins high and is incrementally lowered until a buyer accepts the current price, or where multiple identical items are sold and all winning bidders pay the same final clearing price. Common in commodity and bulk-quantity sales.

A real-time catalog display that activates during the final minutes of an auction, automatically surfacing lots that are about to close to the top of the bidding screen. Rather than searching through a full catalog for time-sensitive items, bidders see the most urgent lots front and center — making it easier to monitor activity and place last-minute bids across multiple items. This feature reduces missed opportunities for bidders and helps auctioneers maintain engagement through the close.

Learn More: Timed Online Auctions | Bidding Experience

The most widely recognized auction format — an open, ascending-bid sale where participants openly compete by placing progressively higher bids until no one is willing to go higher. The highest bidder at the close wins the lot. Nearly all traditional and online auction formats — including timed, live, and simulcast — are variations of the English auction model.

Learn More: Timed Online Auctions | Simulcast Auctions

A financial arrangement in which a neutral third party holds funds until all conditions of a transaction are satisfied. Escrow is most commonly used in real estate and high-value asset auctions, where title transfer, inspections, or legal requirements must be completed before the seller receives payment. It protects both buyer and seller throughout the closing process and is especially important when the asset being sold requires a formal change of ownership.

Learn More: Payments and Invoicing | Security and Reliability

An auction-style sale of personal property and assets from an estate, most often resulting from a death, divorce, downsizing, or bankruptcy. Estate auctions are typically conducted by a licensed estate liquidator and may be held on-site or entirely online.

Learn More: Estate Sale Software | Timed Online Auctions

The end-to-end administrative process of planning, configuring, running, and closing out an auction event. This includes setting up lots, managing bidder accounts, monitoring bids in real time, processing payments, and handling post-sale logistics.

Learn More: Auction Management | Event Solutions

The price a knowledgeable, willing buyer would reasonably pay to a willing seller in an open market — with neither party under pressure to act. FMV is often used as a baseline when setting reserve prices, conducting appraisals, and evaluating whether auction results reflect true market demand. The competitive nature of auctions frequently drives final prices toward — or beyond — fair market value, especially when marketing reaches the right buyer pool.

An announcement made by a live auctioneer just before closing bidding on a lot, signaling that the item is about to sell. In practice, this often sounds like 'going once, going twice' — a final call for any remaining bids before the gavel falls. It gives everyone in the room or on the simulcast feed one last opportunity to respond before the lot is awarded.

Learn More: Simulcast Auctions | Auctioneer Software

A highlighted auction item given premium placement or visibility within a catalog or on an auction website. Featured lots are used to draw attention to high-value or strategically important items, increasing bidder interest and final sale prices.

Learn More: Auction Website Builder

A person physically present at a live auction venue who places bids in the room. In simulcast auctions, floor bidders compete simultaneously with online bidders in real time, with the auctioneer acknowledging bids from both channels.

Learn More: Simulcast Auctions

The minimum acceptable selling price for a lot. Often used interchangeably with reserve price, though technically a floor price can refer to an internal operational threshold the auctioneer sets — which may not be formally disclosed to bidders — while a reserve price is a contractual minimum documented in the terms of sale.

A bid increment setting that constrains proxy bids to display only at defined increment intervals, preventing off-increment amounts from appearing in the bid history. For example, if increments are set at $25, a proxy bid entered at $112 would display as $100 or $125 — never $112. Forced increments keep bid displays clean and predictable, and make invoices and settlement reports easier to reconcile.

Learn More: Auction Management | Timed Online Auctions

The mallet used by a live auctioneer to signal the end of bidding on a lot. When the auctioneer strikes the gavel — or says sold — the lot is officially awarded to the current high bidder. In online auctions, the closing time serves the same function.

Multiple similar or related items bundled together and sold as one lot. Group lots often contain items of the same type (e.g., a set of chairs), while bulk lots may be mixed assortments.

The final winning bid amount at which a lot is sold — the price at the moment the auctioneer's gavel falls or the online lot closes. The hammer price does not include the buyer's premium, taxes, or other fees.

Learn More: Payments and Invoicing | Reporting and Analytics

An auction format that closes at the exact scheduled time with no extensions — regardless of whether bids are placed in the final seconds. Unlike a soft close (auto-extend), a hard close sets a definitive, fixed deadline. This format can favor experienced bidders skilled at timing their bids strategically and is sometimes preferred when a strict timeline is operationally necessary. The tradeoff is that hard closes are more vulnerable to last-second sniping.

Learn More: Learn More: Timed Online Auctions | Auction Management

The participant who currently holds the winning bid on a lot at any given moment during an auction. The high bidder position changes each time a higher bid is placed, with the final high bidder at close winning the lot.

Learn More: Bidding Experience

A window of time before an auction event during which prospective bidders can physically examine items. Inspection periods are especially important for equipment, estate, and real estate auctions, where condition significantly affects value.

A statement sent to the winning bidder after the auction closes, detailing items won, hammer prices, buyer's premiums, applicable taxes, and the total amount due. Auction software typically generates and distributes invoices automatically with integrated payment links.

Learn More: Payments and Invoicing | Auction Management

A single entry in an auction catalog — either one item or a grouped collection of items sold together. Each lot is assigned a lot number, description, photos, and starting bid, and closes independently in timed auctions.

Learn More: Auction Management

A bid that exceeds the required minimum increment by a significant amount — often used as a competitive strategy to deter other bidders by signaling strong intent. Also called a jump bid or aggressive bid.

The process of selling off assets, inventory, or property — typically in bulk or at discounted prices — to convert them quickly into cash. Auctions are a primary vehicle for liquidations in retail, bankruptcy, estate, and industrial contexts.

Learn More: Retail Liquidators | Estate Sales

An auction conducted in real time with a live auctioneer calling bids, traditionally in a physical venue. Modern live auctions often include a simultaneous online bidding component (simulcast) to expand buyer reach.

Learn More: Simulcast Auctions | Auctioneer Software

A single unit of sale within an auction — either one item or a group of items cataloged together with a shared lot number. Lots are the fundamental building blocks of any auction event.

Learn More: Auction Management

A unique number assigned to each item or group of items in an auction catalog. Lot numbers keep events organized, make it easy for bidders to track specific items, and connect bid records, invoices, and pickup receipts to the correct assets. In online auctions, lot numbers are assigned during cataloging and remain visible throughout the event — on bidding pages, invoices, and settlement reports.

Learn More: Auction Management | Catalog

The highest amount a bidder is willing to pay for a lot, entered in advance for proxy or absentee bidding. The system automatically places bids on the bidder's behalf up to this ceiling, without revealing the maximum to other participants.

Learn More: Bidding Experience

The lowest amount at which bidding on a lot may begin. Set by the auctioneer, the starting bid reflects the item's minimum perceived value. Different from a reserve price, which may be hidden from bidders.

The ability for bidders to participate in auctions from smartphones or tablets via a dedicated mobile app or mobile-optimized website. Mobile bidding expands reach by allowing participation from anywhere, and is essential for competitive online auction platforms.

Learn More: Mobile Auction App | Bidding Experience

The primary professional trade association for auctioneers in the United States. Founded in 1949, the NAA provides education, certification programs (including the CAI designation), industry advocacy, and a national community of practice for auction professionals. Membership signals a commitment to professional standards and ongoing development in the field.

A designation indicating that an auction lot has no minimum selling price — it will sell to the highest bidder regardless of the amount. No-reserve lots attract more bidders because participants know the item will definitely sell.

An auction held by a charitable organization to raise funds for a cause. Non-profit auctions may include silent auction formats, live gala events, or online fundraising campaigns, often featuring donated items from sponsors and community partners.

Learn More: Event Solutions | Timed Online Auctions

An auction conducted at the physical location where the assets are stored or originally situated — such as a farm, factory floor, warehouse, or estate property. On-site auctions allow bidders to inspect items in person before or during the sale, which is especially valuable in equipment, industrial, and estate contexts where condition matters. Many on-site events now run with a simultaneous online bidding component (simulcast) to reach buyers beyond the local area.

Learn More: Simulcast Auctions | Event Solutions

The ability to add an uncatalogued item to an active live auction and sell it immediately — without prior setup or lot creation in the system. On-the-fly clerking gives auctioneers flexibility during fast-moving floor sales, allowing them to bring in walk-ups, found items, or last-minute consignments without interrupting the flow of the event. The item is entered, bid on, and awarded in real time, with the transaction captured just like any pre-cataloged lot.

Learn More: Simulcast Auctions | Auctioneer Software

An auction conducted entirely over the internet, where buyers browse, bid, and pay digitally. Online auctions eliminate geographic barriers, enabling auctioneers to reach bidders nationwide or globally. They may run on timed, proxy, or simulcast formats.

Learn More: Timed Online Auctions | Auction Website Builder

The first bid placed on a lot, or the minimum starting price established by the auctioneer. Once the opening bid is placed, subsequent bidders must exceed it by at least one bid increment.

The condition of having been surpassed as the high bidder by another participant's higher bid. Most auction platforms notify bidders in real time when they have been outbid, prompting them to respond with a new bid if they choose.

Learn More: Bidding Experience | Mobile Auction App

A numbered card or handheld sign used by registered attendees at live auctions to signal bids to the auctioneer. Each bidder receives a unique paddle number at check-in, and all winning bids are recorded under that number for invoicing and recordkeeping. In online auctions, the paddle is replaced by a digital bidder number assigned at registration — the function is identical, just automated.

Learn More: Bidding Experience | Auction Management

The auctioneer's declaration that a lot will not sell — typically because bidding failed to reach the reserve price. When an item is passed, it is 'bought in' by the seller and not transferred to any buyer. The auctioneer may follow up with the highest bidder for an after-sale offer or relist the item in a future event.

A technology service that authorizes and processes credit card and electronic payments on behalf of auction platforms. Payment gateways encrypt financial data and connect the auction software to banks for secure, real-time fund collection.

Learn More: Payments and Invoicing | Security and Reliability

The logistical process by which winning bidders collect their purchased items after an auction closes. Auctioneers typically set pickup windows and locations, and may offer shipping options for remote buyers.

Learn More: Auction Management

An informal projection of the price range a lot is likely to achieve at auction, typically prepared by the auctioneer based on comparable sales, current market conditions, and item condition. Pre-sale estimates help bidders calibrate expectations before placing a proxy bid or setting a maximum, and help sellers evaluate whether their reserve price is realistic. They are projections — not guarantees of outcome.

Learn More: Reporting and Analytics

A scheduled period before the auction opens during which prospective bidders can inspect items in person. Previews help bidders assess condition and value, and can significantly increase bidder confidence and final sale prices.

The documented history of an item's ownership, origin, or chain of custody. Provenance is most relevant in estate, art, antiques, and collectibles auctions, where a clear record of where an item came from — and who has owned it — can significantly increase both its value and buyer confidence. Well-documented provenance also reduces the risk of ownership disputes after the sale.

Learn More: Auction Management | Estate Sale Software

An automated bidding method where a bidder sets a maximum amount and the system bids on their behalf in the smallest increments necessary to maintain high-bidder status — up to the maximum. Proxy bidding allows participation without constant monitoring.

Learn More: Bidding Experience | Timed Online Auctions

A one-click bidding option that instantly submits the current minimum required bid on a lot — without requiring the bidder to manually enter an amount. Quick bid buttons are designed for speed and convenience, letting active participants keep pace with fast-moving auctions across multiple lots without stopping to type. The system calculates the exact minimum bid based on the current high bid plus the configured increment and applies it with a single action.

Learn More: Bidding Experience | Timed Online Auctions

A bidding environment in which bids are registered, displayed, and competed upon instantly with no meaningful delay. Real-time bidding is standard in modern online and simulcast auctions, giving all participants equal access to current bid status.

Learn More: Timed Online Auctions | Simulcast Auctions

A penalty charged to a winning bidder's payment method when they fail to pay for or pick up an item they won at auction. The relisting fee helps the auctioneer recover the cost of re-cataloging, re-marketing, and re-selling the item in a future event. It also serves as a deterrent against non-paying bidders and protects consignors from the delay and disruption of a failed transaction. Relisting fee policies are disclosed in the terms of sale before bidding begins.

Learn More: Payments and Invoicing | Auction Management

A confidential minimum price set by the seller below which a lot will not be sold. If bidding does not reach the reserve, the auctioneer may pass the lot or negotiate with the highest bidder. Lots that meet their reserve are said to have sold above reserve.

An auction format used to sell overstock, returned, or discontinued merchandise from retailers at discounted prices. Online retail liquidation auctions attract resellers, entrepreneurs, and bargain hunters and are a major growth segment in e-commerce auctions.

Learn More: Retail Liquidator Software | Timed Online Auctions

An auction format where the dynamic is flipped — buyers post what they need and sellers compete by bidding prices down rather than up. The lowest qualifying bid wins the contract or sale. Reverse auctions are most common in B2B procurement and government contracting, where buyers want to source goods or services at the lowest possible price. This format is structurally opposite to the English auction model used in most consumer and asset auctions.

Learn More: Event Solutions

A trained auction team member who works the floor at live events — spotting bids from the crowd, relaying them to the auctioneer, and helping maintain energy in a large room. Also called a bid assistant or bid spotter, the ringman is an important part of a fast-moving, well-run floor sale. In simulcast auctions, ringmen also help manage the flow between floor bidders and incoming online bids.

Learn More: Simulcast Auctions | Auctioneer Software

An auction format in which each participant submits a confidential bid by a set deadline, without knowledge of what others have offered. All bids are opened simultaneously at the close, and the highest qualifying bid wins. Sealed bid auctions are common in government surplus sales, real estate dispositions, and situations where price confidentiality is important to all parties.

Learn More: Auction Management

The percentage of lots in an auction that sell successfully — calculated by dividing the number of sold lots by the total lots offered. A high sell-through rate indicates strong catalog quality, appropriate reserve pricing, and effective marketing.

Learn More: Reporting and Analytics

A fee charged by the auction house to the seller, calculated as a percentage of the hammer price. Different from the buyer's premium, which is charged to the buyer. Together they represent the auction house's core revenue model.

Learn More: Payments and Invoicing

A financial summary issued to the seller (consignor) after an auction closes, detailing all lots sold, their hammer prices, applicable fees and commissions, and the net amount due to the seller. A clear, timely settlement report is a mark of a professionally run auction operation — and a key part of building long-term trust with consignors.

Learn More: Payments and Invoicing | Reporting and Analytics

An auction format where bids are submitted privately — typically in writing on bid sheets — without a live auctioneer calling bids. Common at galas, fundraisers, and charity events, silent auctions allow bidders to browse and compete discreetly.

Learn More: Event Solutions

An auction format that runs simultaneously in a live physical venue and online, allowing both floor bidders and remote online bidders to compete in real time. The live auctioneer calls bids from both sources, and the software syncs activity instantly across channels.

Learn More: Simulcast Auctions | Auctioneer Software

An auction platform or event designed for one-time use, often by organizations or individuals who need to run an auction occasionally without committing to a long-term software subscription. Ideal for corporate sales, charities, and special events.

Learn More: Single Use Auction Software

A closing mechanism that extends the bidding period when activity occurs in the final minutes. Synonymous with auto-extend bidding, a soft close prevents sniping and creates a fairer, more competitive close for all participants.

Learn More: Timed Online Auctions

A closing format in which auction lots end at set intervals rather than all at once — for example, one lot every 30 seconds or one every two minutes in sequence. Staggered closing lets bidders focus on individual lots without being overwhelmed, prevents server traffic spikes at a single close moment, and gives the auction a sense of continuous momentum from open to final close. It's the most common closing format for high-volume timed online auctions.

Learn More: Timed Online Auctions | Auction Management

The initial price point at which bidding on a lot begins. Set by the auctioneer to reflect a sensible entry point — low enough to attract bidders but high enough to protect the seller's interests. Also called the opening bid or minimum bid.

A term indicating that a completed auction sale is not final until the seller formally accepts the highest bid after the event closes. This is common in reserve auctions where the seller retains the right to review results before confirming. Buyers should note that a winning bid in a 'subject to confirmation' auction is not a guaranteed sale — the seller may decline if the bid did not meet their reserve or internal threshold. Learn more:

Learn More: Auction Management

The legally binding rules and conditions governing participation in an auction. Terms of sale cover buyer's premium rates, payment deadlines, pickup schedules, return policies, and default consequences. Bidders agree to the terms upon registering.

Learn More: Auction Management | Security and Reliability

An auction where every lot has a preset start and end time, and bidding occurs entirely online within that window. Lots may close sequentially (staggered) or all at once. Timed auctions are the most common format for online-only auction businesses.

Learn More: Timed Online Auctions | Auction Management

The legal process by which ownership of an auctioned asset is transferred from the seller to the winning bidder upon full payment. For high-value items such as vehicles, real estate, or heavy equipment, title transfer may require specific documentation.

An auction in which all lots are sold without reserve — guaranteed to the highest bidder regardless of price. Unreserved auctions build strong buyer confidence and typically generate higher participation rates due to the certainty of sale.

A term used primarily in real estate and government auctions for the minimum price at which a property will be sold. Similar to a reserve price, the upset price is often publicly disclosed and represents the floor below which the asset will not be transferred.

The individual or organization that provides items for sale through an auction. The vendor (or consignor) delivers goods to the auction house, agrees to terms of sale, and receives payment — minus commissions — after the event closes.

An auction conducted fully online with no physical event counterpart. Virtual auctions may include live-streamed auctioneer presentations, video lot walkthroughs, and real-time online bidding, offering the atmosphere of a live event without requiring a physical venue.

Learn More: Timed Online Auctions | Event Solutions

A personalized list of auction lots that a registered bidder has flagged for easy tracking. Bidders add items to their watchlist to monitor bid activity, receive outbid notifications, and quickly access priority lots during a busy auction.

Learn More: Bidding Experience | Mobile Auction App

Auction software that is fully branded under the auctioneer's own company name, logo, and domain — with no visible reference to the software provider. White-label platforms create a professional, trust-building experience for both bidders and consignors.

Learn More: Auction Website Builder | Auction Management

A pre-approved list of bidders who have been granted access to participate in a restricted auction. Auctioneers use a whitelist to qualify participants before the event opens — for example, requiring proof of funds, a signed contract, or a deposit before granting bidding rights. This is especially common in high-value equipment, real estate, and corporate asset auctions where the auctioneer needs confidence that every participant can actually complete the purchase.

Learn More: Auction Management | Security and Reliability

The highest bid at the moment an auction lot closes, resulting in the sale of that lot to the winning bidder. The winning bid (hammer price) forms the basis for the invoice, to which buyer's premiums and applicable fees are added.