Glossary

A tergo

A saying that refers to the backside of a painting or other graphic piece of art, “signature a tergo” means that the artist has signed the back of their artistic work instead of the front.

Absentee Bid

A method of bidding used by those who cannot, or do not wish to attend an auction. They can also be referred to as “written,” “commission”, or “order” bids.

Appraisal

A formal evaluation of the fair market value of a given object. Fair market value represents what the auction house believes that specific object would bring at auction. Specialists and appraisers at the auction house conduct appraisals by comparing the object with similar, recently sold works – but no appraisal is considered definitive. The market always decides the outcome of an auction sale.

As Is

Almost all property for sale at auction is offered “as is,” meaning that it is sold with all existing imperfections and faults.

Buyer’s Commission

The buyer’s commission is a charge in addition to the hammer price, a set percentage that the buyer of an auction item is required to pay the auctioneer.

Cataloguing

Factual information about a lot offered for sale; it often contains a detailed description of the object, the year it was created, the name of the artist or maker, exhibitions in which it has appeared earlier, and publications where it has been documented.

Estimate

Each lot is given a low and high estimate, representing the range of evaluations made by specialists and appraisers in which the lot might sell at auction. Estimates are based on the physical examination of an object and recent auction records of comparable pieces. The estimate provides prospective buyers with an important but, of course, preliminary guide to value and is the basis for establishing an object’s reserve price.

Fair Warning

A warning that is sometimes given by the auctioneer, meaning that the hammer is about to come down on a lot. The fair warning offers one last chance to place your bid. If there are no subsequent bids, the auctioneer’s hammer falls, and the sale is completed.

Hammer Price

The winning bid for a lot at auction is the price upon which the auctioneer’s hammer falls, determining the sale price. Although, it does not include the buyer’s premium.

Lot

An individual object or group of objects offered for sale at auction as a single unit, sold under the same number in the auction catalog.

Paddle

A sign bidders use at live auctions; the paddle displays the number assigned to a bidder when registering at the live auction. If you want to place a bid, simply raise your paddle until the auctioneer acknowledges you. If you place the winning bid, your paddle number is recorded alongside your bid.

Provenance

Provenance is an important part of an object’s authentication process, as it establishes the chain of ownership – if possible, all the way back to the date it was created. Provenance can significantly impact an object’s value.

Reserve or Reserve Price

The reserve price is a confidential minimum price agreed upon by the seller and the auctioneer beforehand. If the bidding ends before the reserve price is reached, the lot will not sell.

Seller’s Commission

A commission paid by the seller to the auction house, a set percentage that is deducted from the hammer price when a lot sells.