Under the Hammer—Auction Glossary

 

Welcome to 'Under the Hammer' by Webb’s—an educational series that offers a deep dive into the captivating world of auctions. From art market insights to the rarest vehicles and most coveted handbags, we guide you through every facet of the auction world, sharing expert knowledge from New Zealand’s leading auction house.

 

Auction Glossary

One of the joys of buying at auction is partaking in a process with a rich sense of tradition, ceremony and theatre—auctions have after all been taking place since antiquity. With such a history, the auction world has developed its own language, with many terms that are unique to the industry. For those new to buying or selling at auction—whether in person or online—some of the language may be unfamiliar or confusing, so we’ve developed a helpful glossary to demystify the lingo and give you the ability to sell and bid with confidence.


A

  • Absentee Bid: A bid placed by a potential buyer who is unable to attend the auction. It is submitted in advance, and the auctioneer will bid on their behalf up to the specified amount.

  • AF (All faults): A term indicating that the item is being sold in its current condition with no warranties or guarantees, often with no returns or exchanges allowed. See also ‘As-is’

  • Agent Agreement: The contract a vendor signs agreeing to Webb’s selling on their behalf.

  • Appraisal: The process of determining the estimated value of an item, usually done by an expert. This a complimentary service at Webb’s.

  • As-Is: A term indicating that the item is being sold in its current condition with no warranties or guarantees, often with no returns or exchanges allowed.

  • Auction Portal: An online platform from which you can register and bid on auctions.


B

  • Bidding Increments: The minimum amount by which a bid must be raised, determined by the auctioneer.

  • Bidder’s Number: A number assigned to each bidder for identification purposes during the auction.

  • Buy Now: When items are available for immediate purchase at a fixed price.

  • Buyer's Premium: The percentage of the hammer price that the buyer is required to pay in addition to the final bid. This fee goes to the auction house. At Webb’s the buyer's premium is 19.5% of the hammer price plus GST. Separate for car sales


C

  • Catalogue (noun): A printed or online listing of the items being offered for sale at an auction, often with detailed descriptions and images.

  • Catalogue (verb): The process of entering an item into a catalogue. This includes numbering, photographing, and uploading to the auction portal.

  • Condition Report: A detailed assessment of an item's condition, noting any wear, damage, or repairs.

  • Consign: the process of the auction house accepting items to sell on behalf of the vendor.


D

  • Deceased Estate: Items or entire collections previously owned someone who has passed away.

  • Departments: Various areas that an auction house specialises in, for example Art, Fine Wines & Whiskies etc.


E

  • Estimate: The auction house’s valuation of an item, usually presented as a price range in the catalogue.


F

  • Fair Market Value: The price that an item would sell for on the open market, typically used for appraisals and insurance purposes.

  • Floor Bidder: A bidder who is physically present in the auction room.


G

  • Gavel: The small hammer used by the auctioneer to signal the final bid, marking the conclusion of an auction lot.


H

  • Hammer Price: The final bid price when the auctioneer’s gavel comes down. This does not include the buyer's premium or GST.

  • House Sale: An auction held at the location of the estate or property, often involving the sale of the home’s contents.


I

  • Increment: The amount by which the auctioneer increases the bidding.

  • In-House Bid: A bid placed by someone physically present at the auction venue.

  • Insurance Value: The value assigned to an item for insurance purposes, often higher than the fair market value.


L

  • Live Bidding Console: An online platform where live auctions are streamed and can be watched in real time.

  • Lot: An item or a group of items being offered for sale as a single unit in the auction.

  • Lot Number: A unique number assigned to each lot for identification during the auction.


M

  • Minimum Bid: The lowest price at which bidding will start for a particular lot.


N

  • No Reserve: Indicates that the item will be sold regardless of the final bid, with no minimum price required.


O

  • Opening Bid: The first bid called for by the auctioneer to start the bidding process on a lot.

  • Online Auction: An auction conducted via the internet where bids can be placed electronically.


P

  • Paddle: A numbered sign given to bidders for identification purposes during an auction. Bidders raise their paddles to signal a bid.

  • Pass: When a lot fails to meet the reserve price, it may be "passed," meaning it is not sold.

  • Porter: A staff member who brings out items and holds them up individually for viewing during a live auction.

  • Post Auction Offer: An offer made on an item that failed to sell at auction.

  • Primary Market: The market where artworks or items are sold for the first time, often directly from the artist or manufacturer to the buyer. In auctions, this can refer to the sale of newly commissioned works.

  • Private Sale: A sale conducted outside of the auction process, typically between a seller and buyer with the auction house brokering the deal.


R

  • Reserve Price: The minimum price the seller is willing to accept for a lot. If bidding does not meet the reserve price, the lot will not be sold.

  • Rising Bid: An auction style where the price increases as bidders compete for the lot.

  • Rostrum: Another term for the auction podium, where the auctioneer stands during the auction.


S

  • Secondary Market: The market for previously owned artworks or items, typically resold at auction houses, galleries, or through private sales. These items have already been through a previous transaction in the primary market.

  • Selling exhibition: An art exhibition where all works are available for immediate purchase at a fixed price.

  • Silent Auction: An auction where bids are written down rather than spoken aloud, often used for charity events.

  • Single Owner Collection: When all items in the catalogue have come from one owner.

  • Sold As-Is: Items sold without warranties or guarantees, meaning that the buyer accepts the condition as it is.

  • Specialist: An expert in a particular field who provides assessments and appraisals for items being auctioned.

  • Subject Sale: When the final hammer price is below reserve and the sale of the item is subject to the vendor’s approval.


T

  • Telephone Bid: A bid placed by a buyer via telephone, with an auction house representative relaying the bids to the auctioneer.

  • Third-Party Guarantee: An arrangement where a third party guarantees the sale of a lot, receiving compensation if it sells above the guaranteed amount.

  • Tie Bid: When two or more bidders place the same bid simultaneously, the auctioneer will often request one to bid higher.


U

  • Underbidder: The person who places the second-highest bid on a lot.

  • Under Offer: When an offer has been made on an item that failed to sell at auction.

  • Unsold: A term used for lots that fail to meet their reserve price and are not sold.


V

  • Vendor: The person or entity selling an item through the auction house.


W

  • Withdrawal: When a lot is removed from the auction before bidding starts, often at the seller’s request.

  • White Glove Sale: An auction in which every lot offered is sold, often celebrated as a mark of success.


 


View all articles & videos here

Previous
Previous

Evie Kemp | The Estate at Home

Next
Next

The Artist Resale Royalty Scheme