The vocabulary of auctions

A

Absentee bid

A written instruction left with the auction house before the sale, authorising it to bid on a lot on a client's behalf up to a stated maximum. The auctioneer executes it as cheaply as competing bids and the reserve allow.

After-sale

The period immediately after an auction during which unsold lots can still be bought, usually by offer at or near the reserve and subject to the consignor's agreement.

Appraisal

A professional opinion of an object's value, given by a specialist for a specific purpose: sale at auction, insurance, division of an estate or tax. Auction estimates are one kind of appraisal.

Artist's resale right (droit de suite)

The right of an artist, and of their heirs for a period after death, to receive a percentage of the price when an original work of art is resold through an art market professional such as an auction house.

Auctioneer

The person who conducts the sale from the rostrum: announces each lot, takes bids from the room, the telephones, absentee orders and the internet, and knocks the lot down to the highest bidder.

Auctioneer's book

The printed or on-screen list the auctioneer uses on the rostrum, showing for each lot the absentee bids and telephone bookings. It lets the auctioneer execute written bids fairly and in the right order.

B

Bid increment

The minimum amount by which each new bid must exceed the previous one. Increments rise with the price and are defined in a table published in the conditions of sale.

Buyer's invoice

The invoice issued to the successful bidder after the sale, listing the lots bought with their hammer prices, the buyer's premium, applicable taxes and any shipping or other charges.

Buyer's premium

A charge, usually a percentage of the hammer price, that the buyer pays to the auction house on top of the hammer price. The rate is published in the conditions of sale and can differ from one sale to another.

C

Catalogue

The publication that presents the lots of a sale in order, with lot numbers, descriptions, images, estimates and the conditions of sale. It exists in print, as a PDF and online, often on several platforms at once.

Certificate of authenticity

A document issued by a recognised expert, the artist's foundation, the manufacturer or a certification body, attesting that an object is genuine. Its value depends entirely on the authority of the issuer.

Clerk

The member of staff who records the sale as it happens: the hammer price and the buyer's paddle number for each lot, as well as unsold and withdrawn lots. The clerk's record is the basis for invoicing.

Condition report

A written description of an object's physical state (damage, restorations, wear, missing parts) prepared by the auction house, usually on request, to help a bidder decide without seeing the object.

Conditions of sale

The terms that govern an auction: buyer's premium, bid increments, payment deadlines, collection and shipping, liability for descriptions, and the rules for absentee, telephone and online bids. Bidders accept them when registering.

Consignment

The act of entrusting objects to an auction house to be sold on the owner's behalf and, by extension, the group of lots entrusted by one consignor under the same terms. The consignor remains the owner until the sale.

Consignment broker (Business referrer)

A person or company that introduces consignors to an auction house in return for a commission, usually a share of the seller's commission on the lots they bring in.

Consignment receipt

The document an auction house issues when it takes in objects for sale, listing the items, the consignor and the agreed terms. Signed by both parties, it is the reference for every later step.

Consignor

The person or organisation that entrusts objects to an auction house for sale. The consignor agrees the commission and reserves with the house, and receives the net proceeds after the sale.

Consignor settlement statement

The statement sent to a consignor after the sale showing each lot's result, the hammer prices, the deductions (seller's commission, fees, insurance) and the net amount payable.

E

Estate sale

The sale of objects from a deceased person's estate, often an entire household or collection, on behalf of the heirs or an executor. The auction house handles valuation, sale and settlement.

Estimate (low and high)

The auction house's opinion of the likely hammer price of a lot, usually published as a range from a low to a high estimate. It is a guide for bidders, not a guaranteed price.

G

Grading

In numismatics, the assessment of a coin's or banknote's state of preservation on a recognised scale, such as the 1 to 70 Sheldon scale or descriptive grades like UNC, EF and VF. The grade strongly influences value.

H

Hammer price

The price at which the auctioneer knocks a lot down to the winning bidder, before the buyer's premium, taxes and other charges are added. It is the basis for both the buyer's invoice and the consignor's settlement.

Hybrid auction

A live auction in which bids are taken at the same time from the saleroom, telephone lines, absentee orders and online bidders, all competing on the same lots in real time.

K

Knock-down

The moment the auctioneer brings down the hammer and declares a lot sold to the highest bidder. In most legal systems, the knock-down concludes the contract of sale at the hammer price.

L

Live auction

An auction conducted in real time by an auctioneer, with lots offered one after another and bids taken as they come, in a saleroom, online or both.

Lot

An object or group of objects offered for sale as a single unit under one lot number. A lot is described, estimated and sold as a whole, for a single hammer price.

Lot label and barcode

A label attached to an object or its packaging showing its lot number, internal reference and a barcode, so that it can be identified and scanned at every stage from intake to shipping.

Lot number

The number under which a lot appears in a given sale catalogue and is called by the auctioneer. It follows the catalogue order and changes from one sale to another, unlike the lot's permanent inventory reference.

M

Margin scheme

A VAT arrangement available in some countries for second-hand goods, works of art, antiques and collectors' items, under which VAT is calculated on the dealer's or auctioneer's margin rather than on the full selling price.

O

Online bid

A bid submitted over the internet, either in advance (a pre-bid) through the auction house's website or a bidding platform, or live while the sale is taking place.

OR bid

An absentee bid placed on several lots with the instruction that the client wants to buy only one of them. Once one lot has been won, the remaining bids in the group no longer apply.

P

Paddle number

The number assigned to a registered bidder for a sale, shown on a paddle or card in the room and used to record who won each lot. Phone and online bidders receive a bidder number too.

Pre-sale viewing

The period before an auction when the lots are on public display so that prospective bidders can examine them in person. Viewing times and location are published with the catalogue.

Prices realised

The published list of results of a sale, giving the hammer price, or the price including premium, achieved for each lot. Unsold lots are usually left out or marked as such.

Private treaty sale

A sale negotiated directly between a buyer and a seller through the auction house, outside the public auction, at an agreed price. The house acts as intermediary and earns a commission.

Provenance

The documented history of an object's ownership, from its creation or discovery to the present. A sound provenance supports authenticity and legal title, and can add to the object's value.

R

Reserve price

The confidential minimum price agreed between the consignor and the auction house, below which a lot will not be sold. If bidding does not reach the reserve, the lot is unsold (bought in).

S

Sale session

A continuous part of an auction, held at a set date and time and covering a defined range of lots. Large sales are split into several sessions, often by category or value.

Seller's commission

The fee the auction house deducts from the hammer price when settling with the consignor, usually a percentage agreed in the consignment contract. Lot fees, insurance or other agreed costs may be deducted as well.

Starting price

The amount at which the auctioneer opens the bidding on a lot, or the minimum first bid accepted online. It is often set below the low estimate to encourage bidding.

T

Telephone bid

A bid placed live during the sale by a client on the phone with a member of the auction house's staff, who relays the client's bids to the auctioneer in real time.

Timed online auction

An auction held entirely online in which each lot closes at a scheduled time, often extended by a few minutes if a bid arrives just before the close. No auctioneer calls the lots.

U

Unsold lot (bought in)

A lot that does not find a buyer at the sale, usually because bidding did not reach the reserve. The lot is passed or bought in, and may then be offered after the sale, re-offered later or returned to the consignor.

V

VAT on buyer's premium

The value added tax charged on the buyer's premium, which pays for a service provided by the auction house. Its rate and calculation depend on the country of sale, the tax status of the lot and sometimes the buyer's location.

W

Withdrawn lot

A lot removed from a sale after the catalogue was published, for example at the consignor's request, because of a doubt about authenticity or title, or after damage. It is announced before or during the sale and not offered.