GLOSSARY OF TERMS
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Bid
The amount a prospective buyer signals the auctioneer he/she would pay to buy the lot during bidding. Bought-In If there are no bids on a lot, or if bidding does not reach the reserve price, the lot is “bought in,” meaning it is left unsold and remains the property of the owner. Buyer’s Premium The amount above the hammer price that is paid as part of the total purchase price. See The Stove Auction Buyer's Premium rates here. Cataloguing Factual information about a lot offered for sale, such as the name of the stove and producer, a detailed description of the product. This information is published in the auction catalogue available online. Clearing Price The clearing price represents the lowest winning bid at the auction, which is posted publically online. Conditions of Business This important text describes the terms under which The Stove Auction and the consignor agree to sell a lot to the purchaser. It is important to read the conditions carefully before bidding. Consignor The owner who is transferring property to The Stove Auction to act as agent on his or her behalf for sale. Estimate Each lot is given a low and high estimate, representing the opinion of The Stove Auction experts about the range in which the lot might sell at auction. Estimates are based on local knowledge of the market for clean cookstoves. Published in our online catalogue, an estimate provides prospective buyers with an important preliminary guide to value and is generally the basis for establishing the reserve price. Fair Market Value A term frequently used by appraisers referring to their judgment and opinion about an object’s likely sale price if offered by a willing seller to a willing buyer. Since the auction process is open to all bidders, a sale at auction is considered to be a measure of Fair Market Value. Fair Warning A warning sometimes given by the Auction House that the hammer is about to come down on a lot. The fair warning offers those who have registered for the auction but have not yet submitted a bid a notification that the auction is about to close. Guarantee The Stove Auction guarantees to pay a consignor for a lot, regardless of whether the bidding at auction reaches the reserve price. The guarantee is provided jointly by The Stove Auction and SNV Netherlands Development Organisation. |
Hammer Price
The winning bid for a lot at auction. It is the price upon which the auctioneer’s hammer falls, determining the sale price, but does not include the buyer's premium. In the case of The Stove Auction, there is no physical auctioneer or hammer, but this terminology is used as a reference to the winning bid. Lot An individual object or group of objects offered for sale at auction as a single unit. Pass/Unsold Terms used by the auctioneer when an item fails to reach its reserve at auction. Photography Every stove that goes to auction is photographed in high resolution by The Stove Auction for documentary and promotional purposes. Photographs appear in our online catalogues, and are an important way for buyers to identify lots that they wish to acquire. Presale Exhibition With specialists on-hand to answer all questions, The Stove Auction puts sample stoves from its sales on public display in the days before an auction. Exhibitions are free and open to the public and generally close at 12 pm the day before the auction. Please see our Auctions section for dates, times and locations. Reserve or Reserve Price Never formally disclosed, the reserve price is the confidential minimum price agreed upon between the consignor and The Stove Auction. Reserves must be set at or below the low estimate, and if bidding ends before the reserve is reached, the property will not be sold. Results Immediately following every auction, results are posted online in the currency of the auction location. Customarily, results include the hammer price plus the buyer’s premium. Sale Number Every auction at The Stove Auction is given a unique number to distinguish it from previous and subsequent sales of similar properties. The initial letters of the sale number stands for the auction location: “KH” stands for Cambodia, “LA” stands for Laos, etc. The sale number appears in every e-catalogue, among other places. Seller’s Commission A commission paid by the consignor to The Stove Auction, which is deducted from the hammer price. Specialist An expert in biomass cookstoves and local market conditions. |
