Auction Glossary


Auction Glossary from A to Z

A

  • Absentee Bid – A bid placed before the auction starts, allowing participation without being present. Auctioneers bid on behalf of the absentee bidder up to the maximum set.
  • Appraisal – A formal evaluation of an item's fair market value, often conducted by an expert.
  • Auctioneer – The individual or platform conducting the auction, managing bids, and ensuring rules are followed.
  • Authentication – The process of verifying an item's origin, condition, and authenticity.

B

  • Bidding Increment – The minimum amount by which a bid must increase.
  • Bidder Number – A unique identifier assigned to each auction participant.
  • Bonded Goods – Items stored in a bonded warehouse, allowing tax deferment until removed for consumption or resale.
  • Buyer's Premium – An additional fee charged to the winning bidder, typically a percentage of the final bid price.
  • Buy Now Option – A set price at which an item can be purchased immediately without bidding.

C

  • Catalog – A listing of all auction items, including descriptions, images, and estimated values.
  • Certified Provenance – Official documentation confirming an item’s ownership history and authenticity.
  • Closing Time – The designated time when an auction ends, after which no further bids are accepted.
  • Commission Bid – A bid submitted before an auction, authorizing the auctioneer to bid on behalf of the bidder.
  • Condition Report – A document describing the physical state of an auction item, noting any damage, repairs, or irregularities.

D

  • Discretionary Reserve – A seller’s undisclosed minimum price, below which an item will not be sold.
  • Dutch Auction – An auction where the auctioneer starts at a high price and lowers it until a bidder accepts.

E

  • Estimated Value – The expected selling price based on expert appraisal and market demand.
  • Extended Bidding – A system that extends auction time if a bid is placed near the end to prevent last-minute sniping.

F

  • Fair Market Value – The price an item would likely sell for under normal market conditions.
  • Fill Level – The height of liquid in a bottle, indicating potential evaporation or leakage.
  • Fixed-Price Auction – An auction where items are sold at a set price without bidding.

G

  • Gavel Price – The final price before additional auction fees are applied.

H

  • Hammer Price – The final bid price before buyer’s premium and taxes.
  • High-Value Lot – An item or group of items expected to sell for a high amount.

I

  • Import Restrictions – Regulations affecting alcohol shipment across borders.
  • Insurance Coverage – Protection for auction items during shipping, often required for high-value purchases.

J

  • Judging Panel – Experts who assess and verify the quality and authenticity of auction items.

L

  • Lot – A single item or group of items sold as one unit in an auction.
  • Limited Edition – A special release of a product, often numbered or produced in small quantities.

M

  • Magnum – A wine bottle size equivalent to two standard bottles (1.5 liters).
  • Margin Scheme – A VAT scheme where tax is only applied to the profit margin rather than the total sale price.
  • Minimum Bid – The lowest amount a bidder can offer.

N

  • No Reserve Auction – An auction where items sell regardless of the final bid amount.
  • Non-Competitive Bid – A bid where the bidder accepts the final price determined at auction.

O

  • Opening Bid – The first bid placed in an auction.
  • Original Packaging – The item's original box or case, which can enhance its value.

P

  • Paddle Number – A unique number assigned to a bidder for auction participation.
  • Preview – A scheduled exhibition of auction items before bidding begins.
  • Provenance – The documented history of an item’s ownership and authenticity.

R

  • Reserve Price – The minimum amount a seller is willing to accept.
  • Resale Royalty – A fee paid to the original artist when their work is resold.

S

  • Sealed Bid Auction – An auction where bids are confidentially submitted and opened at a designated time.
  • Seller’s Commission – A percentage of the hammer price retained by the auction house.
  • Sniping – A strategy where a bidder places a last-second bid to win an item.

T

  • Tax-Free Bonded Warehouse – A storage facility where alcohol can be kept without paying VAT or duty until removed.
  • Tasting Notes – Descriptions of the aroma, flavor, and characteristics of wines or spirits.

U

  • Unsold Lot – An item that did not meet the reserve price or attract any bids.
  • UV Light Inspection – A method used to verify the authenticity of wine labels and glass markings.

V

  • VAT (Value Added Tax) – A consumption tax applied to sales, varying by country and transaction type.
  • Vintage – The year in which the grapes for a wine were harvested.

W

  • Winning Bidder – The highest bidder at the auction’s close.
  • Whisky Collection Auction – A specialized auction focusing on rare and collectible whiskies.

Y

  • Year of Bottling – The year the spirit or wine was bottled, which may differ from the vintage year.

Z

  • Zero Buyer’s Premium – A rare auction format where no additional fees are charged beyond the winning bid.