Glossary of Terms

Whether you're new to auctions or an experienced collector, understanding auction terminology can help you buy and sell with confidence. Explore our glossary of common auction terms, including bids, reserves, buyer's premiums, estimates, provenance, and more.

Absentee Bid

An absentee bid is a maximum bid submitted before an auction begins for bidders who cannot attend the sale live. Freeman's will bid on your behalf up to the highest amount you authorize, purchasing the lot at the lowest possible price necessary to secure the winning bid.

Appraisal

An appraisal is a formal assessment of an item's fair market value, insurance value, or other designated value for purposes such as estate planning, charitable donations, tax reporting, or insurance coverage. Freeman's specialists evaluate property using market expertise, comparable sales, and current auction trends.

As Is

All property is sold "as is," meaning it is offered in its current condition. Prospective buyers are encouraged to review condition reports, examine property during exhibition periods, and ask questions before bidding.

Authentication

The process of verifying the creator, origin, age, or authorship of a work.

Auction Estimate

The estimated range in which a lot is expected to sell at auction.

Auctioneer

An auctioneer is the professional who conducts the auction and manages the bidding process. The auctioneer calls for bids, recognizes bidders, determines the winning bid, and announces when a lot is sold.

Authentication

The process of verifying the creator, origin, age, or authorship of a work.

Bid

A bid is the amount a bidder is willing to pay for a lot during an auction.

Bidding Increment

A bidding increment is the fixed amount by which bids increase during an auction. Increments typically vary based on the current bid level and help ensure a fair and orderly bidding process.

Bought-In (Unsold)

A lot is considered bought-in, or unsold, when bidding does not reach the reserve price or no bids are placed during the auction.

Buyer's Premium

The buyer's premium is a fee added to the hammer price and paid by the successful bidder as part of the total purchase price.

Catalog Note

Additional information prepared by specialists that provides context, significance, or scholarly commentary about a lot.

Collection

The process of retrieving a purchased item from an auction house or designated storage location.

Complimentary Valuation

An assessment provided by Freeman's specialists to help determine whether an item may be suitable for auction and provide an estimated auction value.

Condition Report

A condition report is a specialist-prepared assessment that describes the physical condition of a lot, including any notable wear, repairs, restorations, or damage.

Consignment

The process of entrusting property to an auction house for sale on your behalf.

Consignor

A consignor is the owner of property who entrusts Freeman's to sell an item or collection on their behalf at auction.

Estimate

An estimate is the range of value assigned to a lot by Freeman's specialists before an auction. Estimates are based on market conditions, comparable sales, rarity, provenance, and condition, and help guide potential bidders.

Exhibition History

A record of museums, galleries, or exhibitions where the object has been displayed.

Fair Market Value

Fair market value is the price a willing buyer and willing seller would reasonably agree upon in an open marketplace.

Hammer Price

The hammer price is the winning bid accepted by the auctioneer. It does not include the buyer's premium, taxes, shipping costs, or other applicable fees.

Literature

Published books, catalogues, articles, or exhibition materials that reference a particular work.

Lot

A lot is an individual object or group of objects offered for sale as a single unit during an auction.

Paddle

A paddle is the bidder identification number assigned during auction registration. It is used to place bids during an in-person auction.

Provenance

Provenance is the documented history of ownership of an object. Strong provenance can help establish authenticity and may enhance a work's value and desirability.

Reserve Price

The reserve price is the confidential minimum amount a consignor agrees to accept for a lot. If bidding does not reach the reserve, the lot will not be sold.

Seller

The owner of property being offered for sale at auction.

Settlement

The payment issued to a consignor after a successful sale, less applicable commissions and fees.

Shipping

The transportation of a purchased lot from the auction house to the buyer.

Specialist

A specialist is an expert in a particular collecting category who evaluates property, advises buyers and sellers, and helps establish auction estimates.

Starting Bid

The minimum opening bid accepted for a lot. The starting bid may be below the reserve price.

Storage Fees

Charges that may apply when purchased property is not collected within a specified time period.

Telephone Bidding

Telephone bidding allows registered clients to bid live through a Freeman's representative who places bids on their behalf during the auction.

Outbid

When another bidder places a higher bid than yours.

Valuation

A valuation is an assessment of an item's current market value prepared by Freeman's specialists. Valuations can be used for auction planning, estate administration, insurance, charitable donations, and other purposes.

Winning Bid

The highest bid accepted by the auctioneer when the lot is sold.