Auctioneering Principles, Practices, and Bid Calling
What an auction is
An auction is a public, competitive sale in which an auctioneer invites bids and awards property to the highest bidder on the seller's terms. Master three moving parts: the seller's terms (reserve, absolute, buyer's premium, as-is), the bidders' conduct, and the auctioneer's call.
Reserve versus absolute
This is the most tested distinction. Absolute means the property sells to the highest bidder regardless of price; the seller may not reject the high bid, and the auctioneer may not accept bids from the seller or place fictitious bids. With reserve (the default unless the contract says absolute) means the seller may reject bids below the reserve. A reserve is a confidential minimum, not the opening bid; opening bids may start lower.
Bid calling
Clarity first, speed second: projection, crisp numbers, consistent increments, and clear bidder recognition. Use “fair warning” and a definite “sold” to close. Ties go to the bidder the auctioneer first recognized. Never “chandelier” a bid-call only bids actually made. Disclose the buyer's premium and any guarantees before bidding opens.
Worked example
Reserve is $10,000; the high bid is $9,500. The auctioneer may pass or withdraw the property-no sale. If the sale were absolute, the same $9,500 bid must be accepted.
Rule of thumb: if the contract doesn't say absolute, it is with reserve.