Auction Terms 101: A Digital Guide for Farmer Auctions Clients
New to the world of digital bidding? Farmer Auctions specializes in online-only auctions, bringing the excitement of the auction block directly to your smartphone or computer.
Whether you are settling a family estate, liquidating a business, or bidding on a piece of local history, "auction language" shouldn't be a barrier. At Farmer Auctions, we believe an informed client is a successful one. Use this guide to navigate our digital catalogs with confidence.
The Fundamentals
Even though you're bidding behind a screen, the same core principles apply to every item in our inventory.
- As-Is, Where-Is: This is the standard for almost all auctions. It means the property or item is sold in its current state, with all faults and without warranties. Since you can't kick the tires through a screen, we always encourage bidders to take advantage of our scheduled preview days to inspect items in person.
- Hammer Price: The final price shown on the digital clock when the listing closes. This is the "raw" price before the buyer’s premium or sales tax is applied.
- Buyer’s Premium: A percentage added to the final hammer price. This fee goes toward the administration, digital hosting, and marketing of the auction.
- The Math: If you win an item for $100 and the buyer’s premium is 15%, your total invoice (before tax) will be $115.
Online Bidding Rules
Digital auctions offer unique tools to keep things fair and convenient. Here is how to use them to your advantage:
- Max Bid (Proxy Bidding): You don't have to sit and watch the clock. Enter the maximum amount you are willing to pay, and our system will automatically bid on your behalf in small increments to keep you in the lead. It will never exceed your Max Bid.
- Soft Close: To prevent "bid sniping" (someone trying to steal an item at the very last second), our auctions use a soft close. If a bid is placed in the final minutes, the countdown clock automatically extends, giving everyone a fair chance to respond.
- Absolute Auction: An auction where the property is guaranteed to sell to the highest bidder, regardless of the price. There is no "floor" or minimum.
- Reserve Price: A confidential minimum price a seller is willing to accept. If the bidding does not reach this amount, the item will not sell.
Real Estate & Land Terms
Selling land online is a game-changer, especially with our Multi-Parcel (Multi-Par) system.
- Multi-Parcel Auction: This dynamic system allows you to bid on individual tracts, combinations of tracts, or the entire property at once. The system automatically calculates the highest return for the seller while giving you the flexibility to buy exactly the acreage you want.
- Settlement: Once the digital gavel falls, the settlement process begins. This is where final payments are made and ownership is officially transferred.
Have more questions?
Our team is here to help you navigate the digital process from start to finish. We are dedicated to transparency and helping you achieve the best results—whether you are buying or selling.
Ready to Sell? From clearing out a home to selling the land it sits on, we make it easy to reach a global audience through our online platform.
Schedule a free consultation with the Farmer Auctions team today: Call: (540) 384-0100 Browse our current auctions: https://www.farmer-auctions.com/#auctions-start
