AARE: (Accredited Auctioneer of Real Estate) The professional designation awarded by the National Auctioneers Association Education Institute to qualified real estate auctioneers who meet the educational and experiential requirements of the Institute and who adhere to a strict code of ethics and standards of practice. In order to be designated with the AARE, auctioneer-scholars are required to complete 24 classroom hours, submit a detailed written auction summary report and proof of at least 10 real estate auctions and be licensed as a real estate agent in their state. To maintain the designation 24 hours of CE every three years and annual designation fees are required.
Absentee bid: A bid placed in an auction by the auction company on behalf of a buyer who is not able to participate in the auction. If you would like to submit an absentee bid, please call our office for the necessary paperwork.
Absolute Auction: An absolute auction is a type of auction in which the sale is awarded to the highest bidder. Absolute auctions do not have a reserve price, which sets a minimum required bid for the item to be sold.
Appraisal: A process of providing an opinion of value on assets or real property.
AMM: (Auction Marketing Management) A professional designation awarded by the National Auctioneers Association Education Institute to help professional auctioneers understand today’s marketing, both technology-based and traditional. To attain the AMM designation, auctioneer-scholars are required to complete 24 classroom hours, complete a custom auction summary report based on knowledge gained from the course. To maintain the designation, 24 hours of CE during the three year CE cycle and annual designation fees are required. The founder of Mayo Auction and Realty, Robert Mayo, helped the National Auctioneers Association develop the course material for the AMM designation program and has been a co-instructor teaching the material to auction professionals nationwide for over 10 years.
As-Is: Selling a property or assets in their current condition without any warranties or guarantees of any kind. Buyers are encouraged to conduct their own due diligence to make determinations on the condition of the property or assets for their specific use and opinion of value.
Auctioneer: An auctioneer is a person who manages an auction, or a public sale at which people can bid on items or properties. Auctioneers are also known as Auction Marketing Professionals. They should be licensed in the states they conduct auction sales. Successful and professional Auctioneers or Auction Marketing Professionals are often accredited members of the National Auctioneers Association. The Founder of Mayo Auction and Realty, Robert Mayo, has served on the board of directors for the National Auctioneers Association and holds numerous designations offered by the NAA.
Auction Agreement: The contract signed between the seller and the auction company. This auction agreement outlines the responsibilities and duties of the auction company as well as the seller.
Auction Marketing: A detailed process where the general public as well as targeted buyers are notified of the auction and given the opportunity to participate and purchase property or assets in the auction. A well designed and executed auction marketing plan is the key to a successful auction.
Auction Info: A description of what is being offered in the auction, including photographs and in some cases video.
Bid: An amount/price offered by a buyer during the auction in order to purchase the property or item(s).
Bid Increment: The minimum dollar amount that the current bid increases in price after each new bid.
Broker Participation: A process for a licensed real estate broker/agent to represent a buyer in a real estate auction. The process requires the broker/agent to submit the necessary paperwork to qualify for a cooperating commission on the sale of the property. This process is easy and encouraged by the auction company.
Buyer's Premium: An additional charge to cover administrative expenses. This is a percentage of the purchase price, which is specified in the auction terms and is in addition to any taxes owed.
CAI: (Certified Auctioneers Institute) The professional designation awarded to practicing auctioneers who meet the experiential, educational and ethical standards set by the National Auctioneers Association Education Institute. In order to be granted the CAI designation, auctioneer scholars must have been practicing full-time auctioneers for at least two years (prior to attending the institute), attend all three years of CAI with more than 120 classroom hours, complete all special projects and complete 24 hours of continuing education every three years. The Founder of Mayo Auction, Robert Mayo, is not only a CAI designation holder but has been an instructor for the program for over 10 years.
Cataloging: The detailed process of organizing items or groups of items into lots to be offered for sale to the public and targeted buyers via auction. Online auction catalogs will include detailed description, photographs and sometimes video. Buyers rely on accurate online auction catalogs to make qualified bidding decisions.
CES: (Certified Estate Specialist) A professional designation awarded by the National Auctioneers Association Education Institute to help professional auctioneers understand how to properly conduct and deal with the settling of estates. The course also educates professional auctioneers on working with family members and dealing with lawyers and accountants. In order to be designated with the CES, auctioneer-scholars are required to complete 24 classroom hours and complete 24 hours of continuing education every three years.
Closing: The final step in executing a real estate transaction. Closings are typically handled by a title company or attorney. The closing for a real estate auction is virtually the same as a conventional real estate transaction.
Commission: The amount paid to the auction company for their services.
Deposit: A flat amount or percentage of the purchase price in a real estate auction paid by the buyer at the time of signing the purchase agreement.
Escrow: A legal arrangement describing a financial agreement whereby money is held by a third party on behalf of the seller and buyer who are in the process of completing a financial transaction.
Estate Auction: Personal property, and in some cases real estate, which is sold through a competitive bidding process. An estate auction can be done with a live auction event, via online bidding or both live and online.
Extended/Dynamic Bidding: Auctions may extend the bidding time on any lot that gets a bid within a certain amount of time of its scheduled closing time. The auction will remain open for those lots until no bids are placed in the allotted amount of time. All lots not receiving a bid in the final minutes will close at the normal time. The auction company will determine the number of minutes necessary to activate dynamic bidding ahead of time.
Fun: What people say they experience when participating in a live or online auction by Mayo Auction.
GPPA: (Graduate Personal Property Appraiser) The professional designation awarded by the National Auctioneers Association Education Institute to qualified property appraisers who meet the educational and experiential requirements of the Institute and who adhere to a strict code of ethics and standards of practice. In order to be designated with the GPPA, auctioneer-scholars are required to complete 40 classroom hours, a detailed written appraisal report and proof of at least two affidavits of appraisals. This designation also requires 24 hours of continuing education every three years.
Listing Broker: Also known as a sellers agent is responsible for representing the interests of people selling a property.
Live Auction: An auction that takes place at a designated place and time, where bidders can browse the auction lots and place their bids in person.
Lot: A group of items or a single item that are sold together at auction. Lots are determined before the auction and only the auctioneer can divide a lot. Each lot in an auction is numbered.
Market Value: The amount for which personal or real property will be sold for on a given day. Market value is determined through competitive bidding and based on what the highest bidder is willing to pay.
Maximum Bid: The maximum amount you are willing to pay for a lot. The price will only increase by the minimum increment, but will automatically raise to your maximum bid as others bid up the lot over time.
Minimum Published Bid: A disclosed and published minimum price the seller will accept for the item or property.
Multi Property Auction: An auction where multiple properties (may be owned by one or more sellers) are offered to the public in an live or online auction event.
Multi Parcel Auction: A method of sale where large properties are divided into smaller tracts that can be bid on individually or in a variety of combinations. This method allows for the property or properties to be sold to a larger buying audience to truly discover market value. A multi-parcel auction can be conducted both live and online to maximize marketing reach and bidder participation.
National Auctioneers Association: Founded in 1949, the National Auctioneers Association is the worlds largest professional organization dedicated to auction professionals. Headquartered in Overland Park Kansas, the NAA represents the interests of thousands of auction professionals in the U.S., Canada and across the world. The NAA is a membership-based organization and represents a range of auction professionals who service a variety of industries. The association is dedicated to providing its members with educational programming and resources to help them advance themselves and, in turn, the industry. Members of the NAA abide by a strict Code of Ethics and are connected with an extensive network of auction professionals.
Non Contingent: No allowances for certain criteria in the purchase agreement that will need to be met before the auction sale can be final. (financing, inspections, etc.)
Online Auction: An auction where bids are placed over the Internet by bidders. No live bidding is taking place at a physical location.
Opening Bid: The starting dollar amount for a property or item in a live or online auction. This dollar amount may or may not be a reserve or minimum bid amount. Not all properties or items have a reserve or minimum bid amount.
Preview: A scheduled time allowing providing an opportunity for a bidder or perspective buyer to physically inspect a property or items in an auction.
Production Fee: An amount defined in an auction listing agreement paid by seller in the event a property does not sell. Not all auctions have a production fee. In fact, most do not.
Property Information Packet: A compilation of information prepared by the auction company on behalf of the seller to help buyers evaluate a property. This information includes but is not limited to terms and conditions, surveys, tax records, disclosures, title work, sample purchase agreement, etc.
Purchase Agreement: A legally binding agreement between a seller and a buyer at the conclusion of a real estate auction. This agreement is signed both parties and defines the responsibilities of each party.
Referring Broker: A licensed real estate broker who refers a seller/client to the auction company. The referring broker earns a percentage of the sale as a referral commission.
Reserve Price: The lowest price the seller is willing to sell the item. If the reserve price is not met at the auction, the item will not be sold.
Sealed Bid: A type of auction where all bidders submit a bid to the auction company either online or in writing by a specific deadline. The bid amounts are not known to the other bidders.
Sellers Commission: A percentage of the sales price paid to the auction company by the seller or the property or assets. In some cases a seller commission can be a flat fee.
Simulcast: Live and online interactive bidding at the same time.
Staggered Closing: Auctions that begin to close and progress at a certain rate of lots instead of at one specific time. For example, an auction will close five lots every five minutes beginning at a certain time. This will be listed in the terms of the auction.
Terms and Conditions: Details of the rules that apply in fulfilling an agreement between the buyer and the auction company. Buyers must agree to the terms and conditions of an auction prior to being allowed to bid in an auction.
Ultimate Choice bidding system: The "Ultimate Choice" system is a web-based bidding system that allows selling in a combination format. It allows bidders to bid on individual lots or a combination of lots (usually parcels of land) throughout the auction. No other company has been able to successfully develop and implement multi-parcel software that allows auction companies to consolidate multiple bidding combinations and provide interested buyers the ability to configure their combinations and bid online.
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