Definition: An offer made by a prospective buyer (bidder) at an auction where that bidder is not physically present. In most cases, an absentee bid is made prior to the auction, although occasionally an offer made through an agent of the bidder is considered to be an absentee bid. Absentee bids are not allowed at all auctions; even when they are permitted, they may not be allowed on all items or properties offered for sale. The rules governing and explaining the absentee bid procedure must generally be made available prior to the auction event.
Also known as a proxy bid.

Terms, Definitions, and Concepts: Auction, Real Estate

Definition: A person who makes an offer for an item for sale at auction, but who is not physically present at the auction event. An absentee bidder usually submits her offer in advance, either orally or in writing. In some cases, a person who bids through an agent may be considered an absentee bidder.
Also known as a proxy bidder.

Terms, Definitions, and Concepts: Auction, Real Estate

Definition: An auction event where some or all of the items are offered "absolute", which means that they will be sold to the highest bidder with no limitations or minimum price (known as a reserve or reserve price). Once a bidder in an absolute auction has offered the highest bid, the seller becomes contractually obligated to sell the item to that bidder. An absolute auction is also known as an absolute sale or an auction without reserve.

Terms, Definitions, and Concepts: Auction, Finance and Investment, Real Estate

Definition: The statement prepared by the auctioneer for the seller(s) following an auction sale which details the financial transactions that occurred during the event.

Terms, Definitions, and Concepts: Auction, Real Estate

Definition: A professional designation issued by the National Association of Auctioneers (NAA) Education Institute to auctioneers who meet basic criteria of education and experience. This title requires the holder to adhere to standards of practice (SOP) and a code of ethics (COE).

Terms, Definitions, and Concepts: Auction, Real Estate

Area measurement (square measure) used primarily in the United States. One (1) acre is equal to 43,560 square feet, 4,046.86 square meters, or 0.4047 hectares.

One (1) acre equals 43,560 square feet.
One (1) acre equals 0.4047 hectares.
One (1) acre equals 10 square chains.
One (1) acre equals 160 square rods.
One (1) acre equals 160 square poles.
One (1) acre equals 160 square perches.
One (1) acre equals 4,840 square yards.
One (1) acre equals 4,046.856 square meters.
One (1) acre equals 0.0016 square miles.
One (1) acre equals 0.0016 sections.
One (1) acre equals 0.004 square kilometers.
One (1) acre equals 0.0000434 townships.
One (1) acre equals 1.183676 arpents.
One (1) acre equals 4.0 roods.

Definition: The date an auction sales transaction is finalized, including the exchange of funds and all documents necessary for ownership. This date must fall within a designated period of time following the auction event, or the buyer may be subject to certain penalties such as loss of deposit.

Terms, Definitions, and Concepts: Auction, Real Estate

Definition: One who is authorized to represent and to act on behalf of another person (called the principal). A real estate broker is the agent of his client, be it the seller or buyer, to whom he owes a fiduciary obligation. A real estate salesperson is the agent of his broker and does not have a direct personal contractual relationship with either the seller or buyer.

Terms, Definitions, and Concepts: Auction, Finance and Investment, Legal (Law), Management, Real Estate

Features, both tangible and intangible, which enhance and add to the desirability of real estate

Definition:
1. The process of estimating, fixing, or setting the market value of real property. An appraisal may take the form of a lengthy report including detailed methods, a short completed form, a simple letter, or even an oral report.
2. An estimate, opinion, or judgment about the value, quality, or quantity of something.

Terms, Definitions, and Concepts: Appraisal, Auction, Finance and Investment, Legal (Law), Management, Real Estate, Taxes and Taxation

Definition: An assistant or student auctioneer who is in training with a licensed and experienced auctioneer. Apprentice auctioneers generally are not allowed to perform auction duties without the supervision of the primary auctioneer.

Terms, Definitions, and Concepts: Auction, Real Estate

Definition:
1. One form of a shell lease, an arctic shell is a commercial or residential building with an unfinished interior and lacking heating, ventilating, and air conditioning (HVAC), and usually without insulation, lighting, plumbing, ceilings, electricity, elevators, or interior walls. An arctic shell is ready for warm shell or vanilla shell improvements (VSI) as well as tenant improvements (TI's), which are to be completed by the tenant once the lease agreement has been negotiated and executed. In many cases, the landlord will offer financial incentives in the form of a tenant improvement allowance (TIA), which pays for or at least partially defrays the cost of any improvements necessary for the tenant to occupy the building itself. Tenant improvement allowances do not usually include furniture, fixtures, and equipment (FFE) or trade fixtures necessary for the tenant to conduct business. Usually vanilla shell improvements (VSI), or those improvements necessary to upgrade the building from a cold shell or base shell state, are not completed until the lease agreement between the tenant and landlord has been negotiated and executed. This ensures that the landlord does not pay for improvements that are unnecessary or that the tenant does not want.

2. The lease agreement or contract for an arctic shell building. A proper arctic shell lease should describe in detail the vanilla shell improvements (VSI) and tenant improvements (TI's) that are to be completed, and any other information necessary for construction of the building to be completed (commonly known as build-out) prior to tenant occupancy.

More or less the same as Cold shell, Bare shell, Base shell, Cold dark shell, Cold dark box, Dark shell, Dark box, Grey shell, or Grey box.


Discussion: Like many real estate terms and phrases, practical use and meanings of those terms associated with shell leases (e.g., vanilla shell, base shell, cold shell, warm shell, etc.) differ by location and situation, sometimes even within the same region or municipal area. As they say, the devil is in the details. The lease or sales contract should clearly and exactly specify the degree to which construction of any sort of "shell" or "box" building has been or will be completed prior to tenant occupancy. As either a tenant or landlord, you should not assume that the other party's definitions of shell lease terminology are the same as yours. Get it in writing, and make sure you understand and agree with all the terms and conditions of the shell lease agreement before you sign. If necessary, have a real estate attorney review the contract prior to its execution.

Shell leasing and its various forms (warm, cold, base, etc.) are used primarily in commercial real estate, but are gaining popularity in upscale condominiums and townhouses and other high-end residential real estate transactions. The idea is to attract either tenants or buyers, or both, by offering customizable living units. Financial incentives in the form of tenant (or buyer) improvement allowances afford new residents the opportunity to select nearly all aspects of interior decor, including relatively large projects such as plumbing and fixtures, wiring, and interior walls.


Terms, Definitions, and Concepts: Real Estate, Construction and Building, Appraisal, Auction, Finance and Investment, Management

Definition: "As is" describes property offered for sale in its present state or condition, with no warranties or promises made as to its value or suitability for a specific use. Buyers must take care to practice due diligence when purchasing property offered "as is".
Sometimes referred to as "As is, where is" or "In its present condition".

Terms, Definitions, and Concepts: Appraisal, Auction, Legal (Law), Management, Real Estate

Definition: An iterative auction where bids may only increase, usually in increments determined by the auctioneer.

Terms, Definitions, and Concepts: Auction, Real Estate

Definition: A public sale of real or personal property conducted by a professional auctioneer. Offers are made and items are purchased through a competitive bidding process.

Terms, Definitions, and Concepts: Auction, Management, Real Estate

Definition: Literally, the podium that the auctioneer traditionally strikes with a gavel to signal the sale of an item, as well as the opening and closing of the auction. Figuratively, an item placed "on the auction block" is an item that is being offered for sale.

Terms, Definitions, and Concepts: Auction, Real Estate

Definition: At an open outcry auction, the person who verbally offers for sale items at auction and takes bids on the items until they are sold or withdrawn. The auction "call" is characteristically conducted in a rapid cadence in order to encourage bidding. The person who calls the auction may be the auctioneer, or she may be a professional auction caller employed by the auctioneer.
Also known as "auction crier" or "bid caller".

Terms, Definitions, and Concepts: Auction, Real Estate

Definition: The legal agreement between the auctioneer and the seller which defines the terms of the contract and the rights and obligations of each party, and allows the auctioneer to offer item(s) for sale and take bids on behalf of the seller.

Terms, Definitions, and Concepts: Auction, Real Estate

Definition: A person who promotes and advertises auctions, either on behalf of the auctioneer, the seller(s), or both. An auction marketer may also make the arrangements for the auction event itself, such as contracting for the auctioneer, auction venue, or insurance coverage for the auction sale.

Terms, Definitions, and Concepts: Auction, Real Estate

Definition: The price paid for a particular item or parcel of real estate at an auction. Also known as clearing price or auction value.

Terms, Definitions, and Concepts: Auction, Real Estate

Definition: The written policies, guidelines, disclosures, terms, and conditions for a specific auction sale, which describe how the sale is to be conducted, the rights and responsibilities of auction participants, any reserves on sale items, payment procedures, fees or other charges paid by buyers, bidder qualifications, and so on. The auction rules are usually made available to prospective auction participants prior to the sale itself. Also known as the "terms and conditions" or "conditions of sale".

Terms, Definitions, and Concepts: Auction, Real Estate

Definition: An auction sale in which the seller has reserved the right to:
- specify a minimum price (reserve price)
- accept or decline any or all bids
- withdraw the item or property from the sale at any point prior to the completion of the sale

Terms, Definitions, and Concepts: Auction, Real Estate

Definition: The applied science which includes the body of knowledge and field of study of auctions, specifically the actions and behavior of the auction participants. Auction theory is a sub-discipline of game theory that seeks to explain the nature and properties of auction markets.

Terms, Definitions, and Concepts: Auction, Real Estate, Science

Definition: The price paid for a particular item or parcel of real estate at an auction. Also known as clearing price or auction price.

Terms, Definitions, and Concepts: Auction, Real Estate