Auction Glossary

Definitions of common auction, bidding, and selling terms.

A

Absentee Bid

A bid placed before an auction begins, allowing a bidder to participate without being present in real time. On bidia.ai, proxy bidding serves this function by automatically bidding on your behalf up to your maximum amount.

As-Is

A condition rating indicating that an item is sold without any guarantee regarding its condition. The buyer accepts the item in its current state, and the seller makes no warranties about functionality, completeness, or cosmetic appearance.

Auction House

A business that facilitates the sale of goods through competitive bidding. The auction house acts as an intermediary between sellers and buyers, handling cataloging, marketing, bidding, and payment processing. bidia.ai is an online auction house supporting both timed and live formats.

B

Bid Increment

The minimum amount by which a new bid must exceed the current highest bid. On bidia.ai, increments are tiered by price: $5 for items under $100, $10 for $100–$499.99, $25 for $500–$999.99, $50 for $1,000–$4,999.99, and $100 for $5,000 and above.

Buyer's Premium

A fee charged to the winning bidder on top of the hammer price, expressed as a percentage of the winning bid. The buyer's premium is set by the seller for each auction and is clearly displayed before any bids are placed. It is added to the winning bid amount to calculate the order subtotal.

C

Condition Rating

A standardized assessment of an item's physical state. bidia.ai uses six ratings: Mint (flawless, like new), Excellent (minimal wear), Good (light use with minor imperfections), Fair (noticeable wear but functional), Poor (significant wear or damage), and As-Is (sold without condition guarantee).

Consignment

An arrangement where a seller provides items to an auction house to be sold on their behalf. The auction house handles marketing, listing, and sale, then pays the consignor after deducting agreed-upon fees. The consignor retains ownership until the item is sold.

E

Estate Sale

The sale of personal property from a deceased person's estate or from someone downsizing or liquidating assets. Estate sales at auction often include antiques, jewelry, art, furniture, and collectibles. Items may come with provenance documentation.

F

Fair Market Value

The price an item would sell for on the open market between a willing buyer and a willing seller, both having reasonable knowledge of the relevant facts. Auction results are considered a strong indicator of fair market value because they reflect actual competitive demand.

H

Hammer Price

The final winning bid amount when an auction closes, before any additional fees such as buyer's premium, taxes, or shipping. On bidia.ai this is the amount displayed as the winning bid when the auction ends or the countdown expires.

L

Live Auction

An auction format where a seller broadcasts real-time video while presenting items one at a time. Bidders watch the live stream and place bids instantly. On bidia.ai, live auctions use WebRTC streaming with sub-second latency, a spotlight system for the current item, countdown timers, and live chat.

Lot

A single item or group of items offered as one unit in an auction. Each lot has its own listing, bidding history, and closing time. In a timed auction, lots close sequentially at intervals configured by the seller.

M

Maximum Bid

The highest amount a bidder is willing to pay for an item, entered when using proxy bidding. The system bids on your behalf in the minimum required increments, only going as high as needed to maintain the lead, up to this ceiling. Your maximum bid is never revealed to other bidders.

Minimum Bid

The lowest acceptable bid on an item, typically the starting price set by the seller. Any first bid must meet or exceed this amount. Subsequent bids must exceed the current high bid by at least one bid increment.

N

No Reserve

An auction where there is no minimum price that must be met for the item to sell. The item goes to the highest bidder regardless of how low the final price is. No-reserve auctions often attract more bidders because there is a chance of getting a deal.

O

Opening Bid

The first bid placed on an auction item, which must meet or exceed the seller's starting price. The opening bid sets the floor from which subsequent bidding continues upward in defined increments.

P

Proxy Bidding

An automated bidding system where you set the maximum amount you are willing to pay, and the platform incrementally bids on your behalf. The system only raises your bid as far as needed to stay ahead of competitors, up to your maximum. You never pay more than one increment above the second-highest bidder.

R

Reserve Price

A hidden minimum price set by the seller below which the item will not be sold. If bidding does not reach the reserve, the item remains unsold. Reserve prices protect sellers from having to sell valuable items at below-market prices.

S

Soft Close

An auction extension mechanism that adds extra time when a bid is placed in the final minutes before closing. This prevents last-second sniping by giving all bidders a chance to respond. On bidia.ai, soft-close can trigger multiple times if bidding continues near the end.

T

Timed Auction

An auction format where all lots have predetermined end times and close sequentially at intervals set by the seller (1 to 15 minutes apart). Bidders place bids at any time before closing. Each lot has its own independent soft-close timer. This is the most common format on bidia.ai.

W

Watchlist

A personal list of items a bidder has saved for easy tracking. Adding an item to your watchlist lets you quickly find it later and optionally receive notifications about its status, such as when the auction is ending soon or when you are outbid.