These auction and real estate terms will be useful when working with professional auctioneer/realtors in the future.  The definitions have come from the National Auctioneers Association and the National Association of Realtors - Real Estate Action Committee.

1. ABSENTEE BID -  A procedure which allows a bidder at an auction to bid without actually being physically present at the auction.  Usually a bidder submits an offer that is exercised by the auctioneer on his or her behalf at the actual auction.  Rules for absentee bids are unique to each auction company.
2. ABSOLUTE AUCTION - An auction where the property is sold to the highest bidder with no limiting conditions or amounts.  The seller may not bid personally or though proxy at this type of sale.  This is known as an auction without reserve.
3. AGENT - A person who acts for or in the place of another individual or entity by authority from them.
4. "AS IS" - Selling the property without warranties as to the condition and/or fitness of the property for a particular use.  Buyers are solely responsible for examining and judging the property for their own protection.  This is also known as an "As Is Where Is Auction" or an "In Its Present Condition Auction".
5. AUCTION BLOCK - The podium or raised area the auctioneer sells from during the auction.
6. AUCTION SUBJECT TO CONFIRMATION - The property is being offered to the highest bidder at the auction subject to the acceptance or rejection of the bid by the owner of the property.
7. BALLROOM AUCTION - An auction of one or more properties conducted in a meeting room facility.  Many times auctions of multi piece land tracts.
8. BID RIGGING - An illegal process of bidding at an auction that is in violation of the Sherman Antitrust Law.  This occurs when two or more people agree not to bid against each other in order to cause the prices at a sale to artificially deflate.
9. CAI - The highest attainable professional auction designation in the country held by only 3% of the auctioneers in the auction industry.  The requirements are attendance at Indiana University for a three year period to fulfill academic requirements, the taking and passing of exams, meeting professional experience requirements, and holding to a strict set of ethical standards as required by the National Auctioneers Association.
10. COMMISSION - The fee charged to the buyer or the seller by the auctioneer for providing auction services.  This fee is usually a percent of the gross sales price established by contract.
11. CONDITIONS OF SALE - The legal terms that govern the conduct of the auction sale, including acceptable means of payment, terms, buyer's premium, possession, reserves and any other limiting factors of the auction.  These conditions are usually written and also verbally presented at the auction.
12. COOPERATING BROKER - A real estate broker that registers a prospective buyer with the auction company, in accordance with the terms and conditions of sale.  The broker is paid a commission only if the prospect is the high bidder at the auction.
13. DUAL AGENCY - The representation of the opposing principles, (buyers and sellers) at the same time by the same agent.
14. HAMMER PRICE OR KNOCKDOWN PRICE - Highest price established by the last bidder and acknowledged by the auctioneer before dropping the hammer or gavel.
15. NO SALE FEE - A charge paid by the owner of the property in a reserve auction sale when the property does not sell.
16. ON-SITE AUCTION - An auction conducted on the premises of the property being sold.
17. PREVIEW - A specified date and time property is available for the prospective buyer to view and evaluate.  Also known as the Open House or Inspection.
18. RESERVE AUCTION - An auction in which the seller reserves the right to establish a reserve price, to accept or decline any and all bids that do not meet this reserve or to withdraw the property from sale prior to the knockdown of the sale price.
19. SEALED BID - A method of sale used where confidential bids are submitted to be opened at a predetermined place and time.  This is not an auction in the true sense si;nce there is no competitive bidding going on in the open market place.
20. UPSET PRICE - Commonly known as the reserve price.