Auction Terms Explained: A Simple Guide for Buyers & Sellers
If you’re new to the auction world, or simply want to brush up on the lingo, you may notice that auctions come with their own vocabulary. At Miedema Auctioneering, we work hard to make every buying and selling experience straightforward, transparent, and stress-free. This guide breaks down the most common auction terms you’ll see on our website, in our catalogs, or at one of our live auctions.
Whether you’re bidding for the first time or managing your hundredth sale, understanding these terms will help you feel confident and prepared.
Absolute Auction
An auction where the property sells to the highest bidder – no minimums, no reserves. Once bidding starts, the item will sell regardless of price.
Reserve Auction
A reserve auction means the seller has set a minimum price they are willing to accept. If bidding doesn’t reach that number, the item may not sell.
Buyer’s Premium
An additional fee added to the winning bid.
For example, if you win an item at $1,000 with a 10% buyer’s premium, your total becomes $1,100.
This fee helps cover auction administration, marketing, and operational costs.
Bid Increments
The minimum amount by which a bid must increase.
For example, bids may increase by $25, $50, or more as the price rises. Omitting bid increments ensures a smooth, fair bidding process.
Ringman
Also known as a bid spotter, the ringman assists the auctioneer in spotting bids during a live auction. They communicate bidder interest quickly so the auctioneer can keep the sale moving.
Soft Close
A common feature in online auctions. If a bid comes in during the final moments of an item’s closing time, the clock extends by a set number of minutes. This ensures all bidders have a fair chance to respond, similar to a live auction’s fast-paced atmosphere.
Staggered Closing
Items don’t all close at once. Instead, they close in small batches, usually separated by a few minutes. This gives bidders time to follow multiple items without feeling rushed.
AS-IS / Where-Is
All items are sold without guarantees or warranties, and buyers are responsible for inspecting items before bidding. “Where-is” means the item must be picked up from its current location.
Preview / Inspection
A scheduled time when bidders can view items in person. At Miedema Auctioneering, we highly recommend attending previews, especially for equipment, vehicles, and high-value assets.
Terms & Conditions
Each auction has its own set of rules regarding payment, pickup, bidding eligibility, and more. Buyers should always read the T&Cs before placing their first bid.
Why These Terms Matter
Understanding these terms helps buyers bid with confidence and ensures sellers know what to expect during their auction. Miedema Auctioneering prides itself on clear communication and industry-leading professionalism, so whether you’re selling a fleet of equipment or bidding on your next project tool, we’re here to make the process easy.
If you ever have questions, CONTACT US TODAY!
