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Helpful Auction Terminology - Explained by Burton Realty & Auction
Whether you're a first-time bidder or just curious about how auctions work, the world of auctioneering has its own unique language. At Burton Realty & Auction, we believe an informed buyer or seller is a confident one. Here are five lesser-known auction terms that can help you feel more prepared before you raise your paddle — online or in person!
1. Buyer’s Premium: The buyer’s premium is a fee added on top of the winning bid. For example, if the premium is 10% and you win an item at $10,000, you’ll actually pay $11,000. This fee helps cover auction costs and is common in both live and online auctions.
2. Absolute Auction: An absolute auction means there is no minimum bid — the item sells to the highest bidder, no matter the price. These auctions often attract more buyers and generate excitement since everyone knows the property will sell.
3. Reserve Price: In contrast to an absolute auction, a reserve price is the minimum amount a seller is willing to accept. If bidding doesn’t reach this hidden threshold, the seller isn’t obligated to sell. At Burton Realty & Auction, we always clarify whether a sale is absolute or subject to reserve.
4. Times the Money: This phrase is commonly used when selling multiple similar items. For instance, if a lot contains 5 identical fence panels and the auctioneer says “sold for $100, times the money,” the total cost is $500. It's a simple phrase with a big impact on your total!
5. Ringman: A ringman (also called a bid spotter) assists the auctioneer by identifying bidders in the crowd and signaling bids. These folks are key to keeping the action moving quickly, especially at fast-paced live events like ours in Carlsbad and surrounding New Mexico areas.
At Burton Realty & Auction, we’re committed to making auctions accessible and transparent. Whether you’re buying farm machinery, real estate, or construction equipment, we’re here to help you every step of the way.
Have questions or want to consign? Reach out today at (575) 760-8088 and let’s talk auctions — New Mexico style!