FREQUENTLY ASKED QUESTIONS


What does it mean to be sold "absolute" vs. "with reserve"?

When an item is sold absolute, it is without reserve, or minimum bid. The item is sold to the highest bidder. An item sold with reserve must meet a minimum bid or have seller confirmation. For example, in real estate, a home may have a list price of $60,000 and the minimum, or reserve, might be 2/3 of that amount. This means the property must bring a minimum of $40,000 on the day of the auction. If a property is advertised as selling absolute, even if the list price is $60,000, the house sells the day of the auction to the highest bidder, regardless of the bid amount.


What kinds of items are sold at auctions?

Just about everything can be sold through the auction method. This includes real estate, personal property such as furniture, automobiles, jewelry, guns, antiques, collectibles, tools, etc. Livestock and farm equipment are also commonly sold. There are even a number of specialty auctioneers and auctions, selling things from exotic animals to art.


I have never been to an auction. How should I bid at an auction?

Depending on the type and style of the auction you are attending, auctioneers will accept a number of bidding techniques. These include raising of the hand, raising of the bid card, verbal "yeah", and some auctioneers even respond to a slight nod, wink, or thumbs up signal. As a newcomer to the auction scene, I would suggest a more overt gesture just to make sure your bid is received on the item you want.

Are there any warranties on the items I purchase at an auction?

No is the plain and simple answer. The auctioneer will announce the terms and conditions prior to the start of the auction, and the number one term at most auctions is, "All items are offered AS IS and WHERE IS, with no warranties expressed or implied." While most auctioneers will do their best to disclose information about the items they are selling, such as imperfections on a piece of pottery, whether or not an appliance works, and the condition of an automobile, the rule of thumb is caveat emptor, meaning "buyer beware."