The meanings of certain auction terms and phrases often differ based upon many considerations: one auction firm's policies and implementation in contrast to an others, common understandings and practices held within the community, or defined markets, whose peculiarities require precise meanings. Additionally, there are enhanced definitions developed through trade associations not withstanding those defined by law. Familiarity with key terms as well as hybrid terms is essential for participation in the auction process. Some of the most fundamental auction terms along with their definitions are as follows:

Absentee Bidder- Generally refers to an intending purchaser placing a bid and/or instructions with an auctioneer prior to an auction to be executed on his or her behalf.
Absolute Auction-
An auction where the property is sold to the highest qualified bidder with no limiting conditions or amount.
A person authorized by another individual or entity to act on their behalf.
"As Is"-
Implies that the buyer takes the entire risk as to the quality of property involved and must trust his own inspection.
Auction- A public sale of property through competitive bidding.

An offer by an intending purchaser to pay a designated price for property to be sold at auction.
Buyer's Premium-
A percentage of the final bid added thereto and payable by the successful bidder.
The recompense, compensation or reward of an agent calculated as a percentage on the amount of the transaction.
Property, which is the subject matter of a separate sale.
Market Value-
The highest price in terms of money which a property will bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus.
Reserve Auction-
An auction in which the seller reserves the right to establish a reserve price, to accept or decline any and all bids or to withdraw the property at any time prior to the announcement of the completion of the sale by the auctioneer.