5 Terms You Should Know When Bidding in Online Live Auctions

Bidding in an Internet live auction isn’t as complicated as it may seem. If you’ve participated in regular live auctions, you may already be familiar with most of what you need to know. However, if you are new to live auctions, or bidding online, the following list might be useful.

Antique vs. Vintage
When browsing online live auctions, it’s important to pay attention to how sellers use the words vintage and antique.

It used to be that vintage was a word used when talking about wine, but in recent years, it has been popular to use the word vintage to refer to anything that’s old or was in fashion several years ago.

At times, sellers will list the exact vintage of an object (for example, a 1940s vintage necklace), but for the most, part they’ll just say that it’s vintage.

Antiques, on the other hand, are generally accepted to be objects that are over 100 years old. The exception to this is if something is rare but newer than 100 years, it might also be called an antique.

Auction Catalog
Auction catalogs can exist in many forms, but they are generally a list of the items up for auction. Items can be listed individually or as groups of items, but each listing in a catalog is called a lot.

The online auction catalog is viewable when you click on an auction’s details. Highlights from each catalog are shown on the front page of online auction sites and give you an idea of what to expect.

Auctioneer
The auctioneer is the person that everyone pictures when visualizing a live auction. Whether at an in-person or online live auction, this is the person who calls out lots and asks for bids. In this capacity, the auctioneer acts almost like a referee in deciding whose bid to accept.

The term auctioneer can also refer to the person or people organizing the live auction. An auctioneer represents the seller, and in online live auctions the terms are sometimes used interchangeably.

Buyer’s Premium (BP)
A buyer’s premium is a percentage that many auctioneers or auction houses append to the total of a winning bid. Usually it is a percentage of the bid, ranging anywhere from 12% to 20%.

On online live auction web sites, the buyer’s premium will be listed for every lot. Some auctioneers don’t charge any premiums, and others vary their premiums based on what is being auctioned.

Reserve /No Reserve (NR)
A reserve is a target amount of money that must be reached before an item or lot is sold. This means that even if you place the highest bid, the seller won’t actually sell the object until it reaches a specified amount.

In contrast, no reserve (NR) means that even if an item’s highest bid is $1, the item will be sold.

The best way to test out your knowledge is to put it to work. See if you can win a low-cost item. If you succeed, start looking for something that really interests you.