Auction Dictionary

Absolute
A type of auction in which the property is sold to the highest bidder at auction regardless of price. Also often described as an auction with “no minimum, no reserve.”

“As is”
A property offered in its present condition without any express or implied warranties or representations. It is a buyer’s responsibility to perform any desired inspections or due diligence prior to bidding.

Auction
A public sale of real or personal property to the highest bidder by a person licensed or authorized for that purpose.

Auctioneer
Any individual who engages in the calling for, the recognition of, and the acceptance of competitive bids for the purchase of real or personal property.

Auction Manager
The member or members of the McCurdy sales team that is taking the lead on managing a specific sale.

Bidder Number
A unique number assigned to a bidder at registration, used for identifying the bidder and the purchases assigned to that bidder.

Buyer’s Premium
A fixed percentage of a bid offered at auction which is then added to the final bid in order to determine the property’s purchase price. By way of example, if a property is sold at auction with a final bid of $100,000 and a 10% buyer’s premium is in effect, that property’s purchase price would $110,000.

By the Acre
A method of sale often used for agricultural or undeveloped acreage in which bids are made based on a per acre price. By way of example, if a 160 acre parcel was offered “by the acre” the high bid may be $5,000 an acre. That amount would then be multiplied times the total acreage to arrive at a total sales price of $800,000.

Clear Title
Ownership of a property that is free from liens or other encumbrances that would restrict the owner’s ability to legally convey the property to another individual or call into question the owner’s legal ownership of the property. Also often called “clean title” or “merchantable title.”

Closing
In the context of a real estate transaction, closing is the culmination of the contract at which the buyer exchanges certified funds for a deed of conveyance from the seller. In the context of an online auction, closing means the conclusion of the bidding period.

Contingency
An event or condition that’s occurrence or failure to occur effects the obligations of the parties to a contract.

Earnest Money
Money tendered by the purchaser at the time the purchaser enters into a contract for the purchase of property to demonstrate the intention and the ability of the purchaser to complete the purchase contemplated by the contract. The money is held in escrow is applied towards the purchase price of the property at closing.

Escrow
The process of holding property, typically money, by a third person until the performance of all of the conditions under a contract are met. The third party then delivers the property in accordance with the agreement of the parties in the contract.

High Bidder’s Choice
A method of auction in which multiple properties are offered together and the high bidder is then granted the right to select their choice property or properties. In the event that the high bidder selects multiple properties, their bid is multiplied times the number of properties selected. The remaining properties are then offered for bidding and the process repeats itself until the selection of properties have all be sold.

Live Only Auction
An auction in which all the bidding is done in person at the auction location at the given time and date for the auction.

Live Auction with Online Bidding, Live & Online Auction
An auction featuring both in person bidding at the auction location and online bidding through McCurdy Auction’s website or bidding app. In Live & Online Auctions, the auction is livestreamed through McCurdy Auction’s website and bidding app in order to permit online bidders to participate in real time with the live auction.

Max Bid
For online auctions, bidders have the ability to set a maximum bid and let the software bid automatically on the bidder’s behalf up to the bidder’s maximum bid. For certain online auctions, bidders can “pre-bid” or establish their maximum bid prior to the start of the auction.

No Minimum, No Reserve
A type of auction in which there is no minimum bid requirement and no reserve amount established by the seller. Instead, the property is sold to the highest bidder at auction regardless of price.

Online Only Auction
An auction in which all the bidding is done through McCurdy Auction’s website or bidding app over the course of the auction.

Property Information Package (“PIP”)
The packet of property specific information prepared by McCurdy from a variety of sources, including, but not limited to, public records, seller information, and other sources.

Ringman
Member of the auction team who assists the auctioneer, provides information to prospective bidders, spots bids, and communicates bids to the auctioneer.

Separate & Together
A method of sale in which multiple properties are offered individually and the high bid is reserved for each property. The high bids for each property are then added together and the properties are offered collectively for the cumulative high bid. If a bidder raises the cumulative high bid, the properties are sold together.

Subject to Seller Confirmation
A type of auction in which the seller reserves the right to either accept or reject the highest bid offered at auction.

Title Insurance
A form of insurance or indemnity that protects the insured against financial loss resulting from defects in title to real property.

Terms & Conditions
The rules governing the conduct of the auction.