Glossary of terms
New to auctions? The following terms will help you understand how our auctions work and what to expect before, during, and after bidding.
Absolute Auction
An auction where the property sells to the highest bidder regardless of the bid amount, with no reserve price and no minimum. All Iron Horse auctions sell subject to the owner's reserve unless specifically stated otherwise.
As-Is, Where-Is
Property is sold in its existing condition, with no warranties or guarantees expressed or implied. Buyers are responsible for inspecting and satisfying themselves as to condition prior to bidding.
Bid Increment
The minimum dollar amount by which the current bid must increase with each new bid.
Buyer's Premium
An additional charge added to the winning bid to cover administrative expenses, calculated as a percentage of the purchase price and specified in the auction terms. It is in addition to any applicable taxes. Not all auctions include a Buyer's Premium.
Due Diligence
The research and investigation a bidder conducts before bidding — reviewing property condition, title, terms, and any available documentation — to make an informed decision.
Extended / Dynamic Bidding
Bidding time may extend on any lot that receives a bid within a set window of its scheduled closing. The lot remains open until no new bids are placed within the allotted time. Lots not receiving a late bid close at their normal time. The auctioneer sets the extension window in advance.
Internet Only Auction
A timed auction in which bids are placed exclusively online through Iron Horse Auction Company. No live bidding takes place at a physical location.
Live Auction
An auction held at a designated place and time, where bidders inspect the lots and place bids in person.
Lot
A single item or group of items sold together as one unit. Lots are determined before the auction and numbered; only the auctioneer may divide a lot.
Maximum Bid
The highest amount a bidder is willing to pay for a lot. The system bids on the bidder's behalf in minimum increments, raising automatically up to the maximum as others bid, ensuring the bidder stays in the lead until their limit is reached.
Reserve Price
The lowest price a seller is willing to accept. If the reserve is not met, the item will not be sold.
Simulcast
Simultaneous live and online interactive bidding.
Staggered Closing
An auction format where lots close in groups at set intervals rather than all at once — for example, five lots closing every five minutes beginning at a stated time. The schedule is listed in the auction terms.