Glossary of Terms
A
Absolute / No Reserve — An auction in which the property sells to the highest bidder, regardless of the final price, subject to the auction's stated terms and applicable law. No minimum bid or reserve applies.
Absentee Bid — A bid submitted by someone who cannot attend the auction in person. Depending on the auction, absentee bidding may be available by phone, written bid, or online.
Acreage — A parcel of land, typically one acre or more, that may include a home, buildings, or other improvements.
After-Sale Offer — An offer submitted after an auction has closed for an item that did not sell.
All-One-Money — A bidding method in which all items included in a lot are sold together for one total bid amount.
Annual Percentage Rate (APR) — The annual cost of borrowing money, expressed as a percentage. APR may include interest, points, fees, and certain other credit costs.
Annuity — A financial product or payment arrangement that provides a series of payments at regular intervals, often for a specified period or for the lifetime of the recipient.
Application Fee — A fee charged by a lender or mortgage broker to process a loan application.
Appraisal — A professional opinion or estimate of the value of real or personal property.
Appreciation — An increase in the value of an asset over time, which may result from market conditions, improvements, or other factors.
As-Is — Property or items are sold in their current condition, with no warranty or guarantee unless specifically stated otherwise. Buyers are responsible for conducting their own inspections and due diligence. All purchases are final unless otherwise stated in the auction terms.
Assessed Value — The value assigned to property by a taxing authority for purposes of calculating property taxes.
Assessor — A public official responsible for determining or establishing property values for taxation purposes.
Asset — Anything of monetary value owned by an individual or organization, including real estate, vehicles, equipment, personal property, investments, and financial accounts.
Assumable Mortgage — A mortgage that may be taken over by a buyer when a property is sold, subject to the terms of the loan and, when required, the lender's approval.
Assumption — The process by which a buyer takes responsibility for an existing mortgage on a property.
Assumption Fee — A fee charged by a lender when a buyer assumes an existing mortgage.
Auction — A method of selling property through competitive bidding, with the property being sold according to the terms announced or published for the auction.
Auction Block — The designated area where an auctioneer conducts an auction or where the item currently being sold is presented.
Auctioneer — The individual responsible for conducting, directing, or managing an auction on behalf of the seller.
Automated Underwriting — A technology-based process used by lenders to evaluate loan applications and provide an underwriting recommendation.
B
Balloon Mortgage — A loan with payments calculated over a longer amortization period but requiring a large remaining balance to be paid at a specified date.
Balloon Payment — A large final payment due at the end of certain loans, including balloon mortgages.
Bankruptcy — A legal process available to individuals or organizations that are unable to meet their financial obligations.
Bid — A prospective buyer's offer to purchase an item or property for a specified amount at auction.
Bid Caller — The person who conducts the bidding, recognizes bidders, and acknowledges bids. Also commonly called the auctioneer.
Bid Increment — The amount by which bidding increases from one bid to the next.
Bidder Number — The identification number assigned to a registered bidder.
Blocked Bidder — A bidder who has been restricted or prohibited from participating in an auction or future auctions.
Bona Fide — A Latin term meaning genuine, legitimate, or made in good faith.
Bought-In / Passed — A lot that remains unsold because it received no acceptable bids or did not meet the applicable reserve or minimum price.
Box Lot — A collection of items grouped together and sold as one lot, often consisting of smaller household items, collectibles, or miscellaneous merchandise.
Bridge Loan — A short-term loan used to provide financing while the borrower transitions between properties, such as purchasing a new property before selling an existing one.
Broker — An individual or company that acts as an intermediary between parties in a transaction, such as a real estate or mortgage broker.
Building Code — Regulations establishing standards for the construction, alteration, maintenance, and occupancy of buildings.
Buy-In Rate — The percentage of lots offered at an auction that did not sell.
Buydown — A financing arrangement in which funds are provided to reduce the borrower's interest rate or monthly payments, typically for a specified period.
Buyer's Premium — A percentage or fee added to the winning bid or hammer price and paid by the buyer. For example, a $100 winning bid with a 10% buyer's premium results in a $110 purchase price before any additional applicable fees or taxes.
C
CAI — Certified Auctioneers Institute, a professional designation awarded to auctioneers who complete specialized education and meet applicable professional standards.
Cash-Out Refinance — A refinancing transaction in which the borrower receives funds beyond the amount needed to pay off the existing mortgage and applicable closing costs or liens.
Catalog — A printed or digital listing of auction lots, descriptions, lot numbers, and other information provided for an auction.
Certificate of Authenticity (COA) — A document intended to establish the authenticity of an item, often associated with artwork, collectibles, memorabilia, or other specialty property.
Certificate of Deposit (CD) — A financial product offered by a bank or other financial institution in which funds are deposited for a specified period in exchange for interest.
Certificate of Eligibility — A document issued by the U.S. Department of Veterans Affairs confirming eligibility for certain VA benefits, including VA-guaranteed home loans.
Chain of Title — The historical record of ownership transfers and related documents associated with a piece of real property.
Choice — A method of selling in which the highest bidder selects one or more items from a group of similar properties or lots. Remaining items may then be offered to subsequent bidders at the same price or according to the auction's stated terms.
Clear Title — Ownership that is free of undisclosed liens, claims, or other title defects that could affect ownership rights.
Clerk — The person responsible for recording bids, maintaining transaction records, processing paperwork, and performing other administrative duties during an auction.
Close / Closing Time — The scheduled time when bidding ends for an online auction or individual lot. Depending on the auction, bidding may end at a fixed time or may be extended.
Closing — The process of completing a real estate or financial transaction, including signing required documents, transferring funds, and transferring ownership when applicable.
Closing Agent — The person or company responsible for coordinating the closing process, including documents, funds, and recording requirements.
Closing Costs — Fees and expenses associated with completing a real estate or mortgage transaction.
Closing Date — The date on which a real estate transaction is scheduled to be completed.
Co-Borrower — A person who applies for a loan with another borrower and shares responsibility for repayment.
Collateral — Property pledged to secure a loan. If the loan is not repaid according to its terms, the lender may have rights to the collateral.
Collusion / Bid Rigging — An illegal or prohibited agreement between bidders intended to prevent legitimate competition or manipulate auction prices.
Commission — The fee paid by the seller to an auction company or other service provider for conducting a sale, typically based on the selling price and/or services provided.
Commitment Letter — A lender's written statement outlining the terms under which it agrees to provide financing, subject to any stated conditions.
Comparables — Similar properties or assets used to help estimate the value of a property being evaluated.
Competing Bids — Bids submitted by multiple bidders competing for the same lot or property.
Concession — A financial or contractual benefit offered by one party to another as part of a transaction, such as a seller contributing toward certain closing costs.
Consignor — The owner or party who places property with an auction company for sale.
Contingency — A condition that must be satisfied before certain contractual obligations become effective or binding.
Cooperative (Co-op) — A residential ownership structure in which a corporation owns the property and individual residents own shares in the corporation along with rights to occupy a specific unit.
Counteroffer — A new offer made in response to a previous offer, generally changing one or more of its terms.
Credit — The ability to borrow money or obtain goods or services with an agreement to pay later.
Credit History — A record of a person's borrowing and repayment activity.
Credit Report — A report containing information about an individual's credit accounts, payment history, and other credit-related information.
Creditor — A person or organization to whom money is owed.
D
Debt — Money owed by one person or organization to another.
Debt-to-Income Ratio (DTI) — The percentage of gross income used to pay monthly debt obligations.
Deed — A legal document used to transfer ownership of real property.
Deed-in-Lieu of Foreclosure — A voluntary transfer of property ownership from a borrower to a lender to satisfy a mortgage debt and avoid foreclosure, subject to the lender's acceptance.
Deed of Trust — A legal instrument used in some jurisdictions to secure a loan with real property.
Default — Failure to fulfill a legal or contractual obligation, such as failing to make a required payment.
Delinquency — Failure to make a required payment by its due date.
Depreciation — A decrease in the value of an asset due to market conditions, age, wear, condition, or other factors.
Down Payment — The portion of a purchase price paid upfront rather than financed.
Due-on-Sale Clause — A mortgage provision that may require the loan to be paid in full if the property is transferred or sold.
E
Earnest Money Deposit — A deposit made by a buyer to demonstrate commitment to a real estate purchase, subject to the terms of the applicable contract.
Easement — A legal right allowing someone to use or access another person's property for a specific purpose.
Encroachment — An improvement or structure that extends onto or into another person's property without proper authorization.
Encumbrance — A claim, restriction, or interest that affects a property's title or use, such as a lien, mortgage, easement, or restriction.
Equity — The portion of a property's value that remains after subtracting outstanding liens or debt secured by the property.
Escrow — Money, documents, or other property held by a neutral third party until specified conditions are met.
Escrow Account — An account established to hold funds for expenses such as property taxes, insurance, or other required payments.
Estate Auction — An auction conducted to sell property belonging to an estate, often following the death of an owner.
Estimate — A projected price range or value provided for an auction lot based on available information and professional judgment. An estimate is not a guarantee of selling price.
Eviction — The legal process of removing a person from real property under applicable law.
Exclusive Agency Listing — A real estate listing agreement in which one broker is designated as the seller's agent, while the seller may retain the ability to sell the property independently without owing the broker a commission, depending on the agreement.
Exclusive Right-to-Sell Listing — A listing agreement giving a broker the exclusive right to market and sell a property, with a commission generally due according to the terms of the agreement regardless of who finds the buyer.
Executor — A person authorized to administer an estate according to a will and applicable law.
Expert — A person with specialized knowledge, training, or experience in a particular field.
F
Fair Market Value — An estimate of the price an asset might reasonably bring in an open and competitive market between willing and informed parties.
Fair Warning — A notice given by an auctioneer that bidding is about to close, providing bidders a final opportunity to submit a higher bid.
Final Selling Price — The total purchase price based on the winning bid or hammer price plus any applicable buyer's premium and other stated charges.
Flood Insurance — Insurance coverage designed to protect against qualifying losses caused by flooding.
Floor / Auction Floor — The physical area where an in-person auction is conducted and bidders participate.
Foreclosure — A legal process through which a lender or lienholder seeks to enforce its rights against property after a borrower defaults on an obligation secured by that property.
Forfeiture — The loss of money, property, rights, or privileges as a result of a legal or contractual violation.
G
Gavel — The auctioneer's hammer traditionally used to signal the end of bidding.
Good-Faith Estimate — A term historically associated with certain mortgage disclosures. Current federal mortgage disclosure requirements may use different forms or terminology.
Grading — The process of evaluating and describing the condition or quality of an item.
Ground Rent — Payment made for the use of land when the land is subject to a leasehold arrangement.
H
Hammer Price — The final bid amount accepted by the auctioneer when bidding closes. The hammer price may not include buyer's premiums, taxes, or other applicable fees.
Hard Close — An auction closing method in which bidding ends at the scheduled closing time without an automatic extension for last-minute bids.
Hazard Insurance — Insurance coverage protecting property against specified risks such as fire, wind, vandalism, or other covered hazards.
Home Inspection — An examination of a property's condition by a qualified inspector. Buyers are responsible for arranging any inspections they consider necessary before purchasing.
Homeowner's Insurance — Insurance coverage that may protect a home, its contents, and the owner against specified property damage and liability risks.
Homeowner's Warranty — A service contract that may cover the repair or replacement of certain home systems or appliances for a specified period, subject to its terms and exclusions.
I
In-Person Auction — An auction conducted at a physical location with bidders participating in person.
Income Property — Real estate owned or operated primarily to generate rental or other income.
Inflation — A general increase in the prices of goods and services over time.
Inquiry — A request for information contained in a person's credit report, often made by a lender or creditor.
Inspection / Preview — A designated period during which prospective buyers may examine auction property before bidding. Buyers should perform their own inspections and due diligence before bidding.
Installment — A scheduled periodic payment made toward a debt or purchase.
Insurance Value — An estimated value used for insurance purposes, generally based on the cost to replace or otherwise insure an item according to the applicable policy.
Internet Bid — A bid submitted electronically through an online auction platform, including during a live simulcast auction.
Investment Property — Real estate purchased or held primarily to generate income, appreciation, tax benefits, or profit rather than serve as the owner's primary residence.
J
Judgment Lien — A lien placed against property as a result of a court judgment.
Junior Mortgage — A mortgage or other loan secured by property that has lower priority than the first mortgage or senior lien.
K
Knocked Down — Auction terminology indicating that bidding has ended and the lot has been sold to the winning bidder.
L
Lease-Purchase Option — An arrangement that allows a tenant to lease a property while retaining an option to purchase it under specified terms.
Liabilities — Debts and other financial obligations owed by an individual or organization.
Liability Insurance — Insurance designed to protect against certain claims for bodily injury, property damage, or other covered liability.
Lien — A legal claim against property used to secure payment of a debt or obligation.
Line — A group or sequence of auction items being sold in a particular order. Multiple auction lines may operate simultaneously during large auctions.
Liquid Asset — An asset that can be readily converted into cash, such as cash, certain securities, or funds in a bank account.
Liquidation — The process of selling assets, often to convert them into cash or close out a business or operation.
Loan Origination — The process of creating a new loan, including application, processing, underwriting, and closing.
Loan Origination Fee — A fee charged by a lender or broker for processing and originating a loan.
Lot — An individual item or group of items offered for sale as a single unit at auction.
Lot Number — The identifying number assigned to a particular lot in an auction.
M
Manufactured Housing — Housing constructed in a factory according to applicable federal construction standards and transported to its installation site.
Market Value — The estimated current value of an asset based on prevailing market conditions and what a buyer may reasonably be willing to pay.
Maximum Bid — The highest amount a bidder authorizes an online bidding system to bid on their behalf. The system generally increases the bidder's offer only as needed, up to the maximum amount.
Maturity Date — The date on which a loan is scheduled to be fully repaid according to its terms.
Modification — A change to the terms of an existing loan, such as its interest rate, payment amount, balance, or repayment period.
Mortgage — A loan secured by real property.
Mortgage Broker — An individual or company that helps connect borrowers with mortgage lenders and may assist with the loan application and processing.
Mortgage Insurance (MI) — Insurance that protects a lender against certain losses resulting from borrower default.
Mortgage Lender — A financial institution or other entity that provides mortgage financing.
Mortgagee — The lender or other party that holds a mortgage interest in a property.
Mortgagor — The borrower or property owner who grants a mortgage interest to a lender.
Multifamily Property — A property containing multiple separate residential dwelling units. Classification may vary based on applicable laws and lending requirements.
N
National Auctioneers Association (NAA) — A professional organization representing auction professionals and promoting education, professional development, and ethical standards within the auction industry.
Negative Amortization — A situation in which a loan balance increases because the scheduled payment does not cover all of the interest due.
Non-Liquid Asset — An asset that cannot be quickly or easily converted into cash.
Note — A written agreement or promise to repay a specified amount of money under stated terms.
O
Offer — A proposal to purchase property or enter into a transaction under specified terms.
On-Site Auction — An auction conducted at the location where the property or assets being sold are situated.
Online-Only Auction — An auction conducted entirely through an online bidding platform. The auction's bidding schedule, increments, opening bid, and closing method are established in advance.
Open House — A scheduled period when a property is made available for prospective buyers to view.
Opening Bid — The first bid or starting bid accepted or requested by the auctioneer.
Original Principal Balance — The original amount borrowed under a loan before principal payments are applied.
Origination Fee — A fee charged by a lender or broker for processing and originating a loan.
Owner Financing — A transaction in which the seller provides all or part of the financing for the buyer's purchase.
Owner-Occupied Property — A property used as the owner's primary residence.
P
Paddle / Bidder Card — A numbered card or paddle issued to a registered bidder at an in-person auction. The bidder uses it to signal bids to the auctioneer.
Passed / Bought-In — A lot that remains unsold because it received no acceptable bid or did not meet the applicable reserve or minimum price.
Personal Property — Property that is movable and generally not permanently attached to land or buildings.
Phone Bid / Telephone Bid — A bid submitted by telephone through an auction company representative who communicates the bidder's instructions to the auctioneer.
Planned Unit Development (PUD) — A development in which individual owners hold title to their homes and lots while common areas and facilities are typically owned or maintained by a homeowners' association.
Point — One percent of the original principal amount of a mortgage loan. For example, one point on a $100,000 loan equals $1,000.
Power of Attorney — A legal document authorizing another person to act on someone's behalf, either generally or for specific purposes.
Principal — The amount borrowed on a loan, excluding interest and other financing costs.
Promissory Note — A written promise to repay money under specified terms.
Purchase and Sale Agreement — A contract establishing the terms of a real estate transaction, including purchase price, deposits, financing, closing date, contingencies, and other applicable conditions.
Q
No commonly used County Line Auction glossary terms currently listed under Q.
R
Ratified Sales Contract — A sales contract that has been signed or otherwise accepted by all required parties, creating a binding agreement subject to its stated terms and conditions.
Real Estate Professional — A licensed or otherwise qualified professional who provides services related to buying, selling, leasing, or managing real property.
Real Property — Land and anything permanently attached to it, such as buildings and certain improvements.
Recorder — A public official or office responsible for maintaining records of real estate transactions and other documents affecting property ownership.
Recording — The official filing of a deed, lien, mortgage, or other document in the applicable public records.
Registering for an Auction — The process of creating or using a bidder account and agreeing to the auction's terms and conditions in order to participate.
Remaining Term — The amount of time or number of scheduled payments remaining on a loan.
Removed / Withdrawn Lot — A lot that has been removed from an auction before it is sold.
Reserve / Reserve Price — The minimum price or other threshold established by the seller that must be met before a property may be sold.
Results — The final selling prices or other outcome information posted following an auction. Unless otherwise stated, posted results may not include buyer's premiums, taxes, or other fees.
Retirement Auction — An auction conducted to sell assets when an individual or business is retiring or discontinuing an operation.
Right of First Refusal — A contractual right giving a specified party the first opportunity to purchase or lease property before it is offered to others, subject to the agreement's terms.
Ringman — An auction staff member who assists the auctioneer by identifying and communicating bids from bidders.
Runner-Up / Under Bidder — The bidder whose bid was the second-highest accepted bid. In certain choice offerings, the under bidder may be offered an opportunity to purchase remaining items under the auction's stated terms.
Rural Housing Service (RHS) — An agency within the U.S. Department of Agriculture that administers housing and community development programs, including certain rural housing loan programs.
S
Sale-Leaseback — A transaction in which a property owner sells the property and then leases it back from the new owner.
Sealed Bid — A sale method in which bidders submit confidential bids that are opened at a specified time. Unlike a traditional competitive auction, bidders generally do not see or respond to competing bids.
Secured Loan — A loan backed by collateral, such as real estate, a vehicle, or other property.
Securities — Financial instruments representing ownership, a debt obligation, or another financial interest, such as stocks or bonds.
Security — Property or another asset pledged as collateral for a loan or obligation.
Seller — The person or entity legally authorized to sell an interest in real or personal property.
Seller Take-Back Financing — Financing provided by the seller to the buyer as part of a property transaction. Also known as seller financing or owner financing.
Servicer — A company or organization responsible for administering a loan, including collecting payments and managing escrow accounts when applicable.
Servicing — The ongoing administration of a loan, including payment collection, escrow management, and related account activities.
Settlement — The process of completing a real estate or loan transaction, including signing documents, transferring funds, and transferring ownership when applicable. Also commonly called closing.
Settlement Statement — A document detailing the financial charges, credits, and other costs associated with a real estate transaction.
Simulcast Auction — A live auction conducted in person while also allowing bidders to participate remotely through an online bidding platform.
Single-Family Property — A residential property designed for one household. Depending on applicable classifications, this may include detached homes, townhomes, condominiums, cooperatives, and certain manufactured homes.
Smalls — Small items that can generally be carried by one person, often including household goods, collectibles, glassware, and similar items.
SMS Alerts — Text-message notifications providing information about auctions, bidding activity, purchases, or other auction-related updates.
Soft Close — An online auction closing method in which bidding on a lot is extended when a qualifying bid is placed near the scheduled closing time.
Specialist — A person with specialized knowledge or expertise in a particular subject, category, or type of collectible.
Starting Price — The initial price at which bidding begins. The starting price is not necessarily the seller's reserve price unless specifically stated.
Subordinate Financing — A mortgage, lien, or other financing arrangement that has lower priority than the primary mortgage or senior lien.
Survey — A professional measurement and drawing of real property showing boundaries, dimensions, improvements, easements, and other relevant features.
T
Tax-Exempt ID Number — A number or certificate issued by the appropriate taxing authority to establish eligibility for a sales-tax exemption. Buyers are responsible for providing valid documentation when required.
Tax Sale — A public sale of property conducted by a governmental authority due to unpaid property taxes or other qualifying obligations.
Taxes and Insurance — Property taxes and insurance premiums that may be paid directly by the property owner or through an escrow account maintained by a mortgage servicer.
Telephone Bid / Phone Bid — A bid placed by telephone through an auction company representative who communicates the bidder's instructions during the auction.
Termite Inspection — An inspection performed to determine whether a property has evidence of termites or other wood-destroying insects or damage.
Terms and Conditions — The rules and contractual provisions governing an auction, including bidding requirements, payment terms, buyer's premiums, pickup or removal requirements, shipping, reserves, and other applicable conditions. Buyers should read the complete Terms and Conditions before bidding.
Third-Party Origination — A lending process in which a party other than the primary lender performs some or all loan-origination functions.
Tie Bid — A situation in which two or more bidders submit the same bid amount. The method used to determine the successful bid depends on the auction format and applicable auction rules.
Title — Legal evidence of ownership of property or the legal right to ownership.
Title Insurance — Insurance designed to protect property owners and/or lenders against certain covered losses arising from title defects or claims.
Title Search — A review of public records to determine ownership and identify liens, claims, or other matters affecting title.
Tract — A defined or identifiable area of land, often used in legal descriptions or property records.
Transfer Tax — A tax imposed by a governmental authority on the transfer of ownership or title to property.
Two- to Four-Family Property — A residential property containing two to four separate dwelling units.
Types of Payment Accepted — Accepted payment methods vary by auction. Options may include cash, check, wire transfer, credit card, or other methods specified in the auction Terms and Conditions. Buyers may be required to provide valid government-issued identification.
U
Under Bidder / Runner-Up Bidder — The bidder whose accepted bid was immediately below the winning bid. In certain choice offerings, the under bidder may have an opportunity to purchase a remaining item under the auction's stated terms.
Underwriting — The process a lender uses to evaluate a borrower's financial qualifications and the property securing the loan before approving financing.
Unsecured Loan — A loan that is not backed by collateral.
V
VA Guaranteed Loan — A mortgage loan backed by a guarantee from the U.S. Department of Veterans Affairs, subject to applicable eligibility and program requirements.
W
Walk-Through — A final inspection of a property by the buyer, typically conducted shortly before closing, to confirm its condition and that agreed-upon requirements have been met.
Warranties — Written guarantees concerning the condition, quality, or performance of a product, property, or service, subject to the specific warranty terms.
Where-Is — A condition indicating that the buyer is responsible for removing an item from its current location unless the auction's Terms and Conditions provide otherwise. Any applicable removal or moving fees will be disclosed in the auction terms.
White Glove Sale — An auction in which every offered lot sells, resulting in a 100% sell-through rate.
Withdrawn / Removed Lot — A lot that has been removed from an auction before it is sold.
X
X $ / Times the Money — A bidding method in which the winning bid applies to each item in the lot. For example, a $100 bid multiplied by four items results in a total purchase price of $400 before any applicable buyer's premium, taxes, or fees.
Important Notice
This glossary is provided for general informational purposes and is intended to explain commonly used auction and real estate terminology. Definitions may vary depending on the auction, transaction, applicable law, financing arrangement, or specific Terms and Conditions.
The Terms and Conditions published for each individual auction control the transaction. Buyers and sellers are responsible for reviewing all applicable auction terms, disclosures, and legal documents before participating.
