Reference

Auction glossary

Plain-language definitions of the terms you’ll meet across a RiHaGo auction.

Registering, previews and wishlists

Getting started

Subscribe to Auction Alerts: A service offered by RiHaGo Auction Limited to buyers, collectors and enthusiasts to subscribe to receive printed or digital catalogs for upcoming auctions, providing advance access to item listings and details
Preview / Gallery Walk: A pre-auction event or period before the auction starts where items are on display for potential buyers to inspect closely
Buyer's Registration: This is a free process by which individuals provide their details, such as contact information and payment preferences, to participate in an auction or purchase goods or services. This process typically involves completing a registration form or providing information online to create an account with RiHaGo Auction Limited
Wishlist: A list of preferred assets a buyer is interested in
Buyer's Agreement: A contract between the buyer and RiHaGo Auction Limited, outlining the terms and conditions of participation in the auction, including bidding rules, payment terms, and buyer's premium
Paddle Number: This is the unique identification number or symbol assigned to each registered bidder on a numbered paddle or card, used to track bids and identify participants during a live auction

Live, online and specialist sale types

Auction formats

Live Auction: An auction conducted in real-time with a live audience and an auctioneer leading the bidding
Sale Room: The physical location where the live auction takes place, typically a designated space within RiHaGo Auction Limited or another venue
Sealed Bid Auction: An auction format where bidders submit their bids privately in sealed envelopes with the highest bidder winning the item
Proxy Auction / Pre-bid: An auction format where participants submit their bids privately to a designated proxy or intermediary, who then executes bids on their behalf during the live Auction
Online Auction: An auction conducted over the internet, where participants place bids remotely through a website or auction platform
Online Public Auction: This is a sale where items are sold to the highest bidder in an open setting, accessible to anyone who meets the auction's requirements
Online Restricted Auction: Limited to a specific group of participants who meet specific criteria or qualification set by the Government / Seller / RiHaGo Auction Limited
Online Selected Auction (Closed Auction): An auction where participants are chosen or invited to participate based on specific criteria which may be limited to a select group of bidders, often with invitations extended by the auctioneer or organizer
Online Bulk Auction: Lotting of multiple assets based on location or asset type as a single lot rather than individually to Bulk Buyers
Online Specialist Auction: An auction specializing in a specific category of items, such as fine art, jewelry, antiques, or collectibles, often attracting collectors and enthusiasts
Online Multi-Parcel Auction: An auction where multiple lots are sold simultaneously enabling bidders to bid on individual lots separately or selecting their preferred lot as a single unit / lot or on the entire collection of lots as a single unit. It offers flexibility to buyers interested in specific lots within the overall sale
Auction Block / Auction Online Platform: Where assets are presented for bidding during an auction

How bids are placed and who places them

Ways to bid & bidders

Bid: The offer or proposal of a price made by a potential buyer to buy at an auction or in a negotiation process
Hard Bid: This refers to a firm, genuine bid made by a bidder with the intention and ability to purchase the item at that price if they become the winning bidder
Automatic Bid: The auction system automatically places bids on behalf of the bidder, incrementing the bid amount by the minimum bid increment
Buy it Now: Purchasing an item immediately without any delay or bidding process
Written Bid: A bid submitted in writing by a bidder who is unable to attend the live auction in person, often accompanied by a maximum bid amount and instructions for the auctioneer
Telephone Bidder: A bidder who participates in the live auction remotely by placing bids over the phone with a designated representative of RiHaGo Auction Limited
Floor / In-Room Bidder: A bidder who is physically present at the auction venue and participates by raising their paddle or hand to place bids
Bid Indicator: A visual or audible signal used by bidders to indicate their intention to bid during the auction, such as raising a paddle, nodding, or calling out
Current Bidder: The Bidder who has placed the highest bid on an item at any given time during the auction, putting them in the leading position to potentially purchase the item
Private Bidder: An individual who participates in the auction as a buyer and chooses to remain anonymous or undisclosed to other participants
Pass Out Bidder: A bidder who leaves the auction before the sale concludes, often indicating disinterest or dissatisfaction with the bidding process or prices
Dealer Bid: A bid made by a professional dealer or reseller who intends to purchase the item for resale, often with different motivations and strategies

Increments, extensions and bid types

Bidding mechanics

Starting Bid: This is the lowest acceptable initial bid amount required to begin the bidding process for an item at auction, as determined by the auctioneer or seller based on factors such as estimated value and expectations
Bid Increment: This is the predefined minimum amount by which bid amount must increase each time a new bid is placed, as determined by RiHaGo Auction Limited
Maximum Bid: The highest amount that a bidder is willing to pay for an item or in an auction or bidding process
Outbid / Under Bid: This occurs when a bidder's offer is surpassed by a higher bid from another participant, prompting them to place a new higher bid if they wish to continue competing for the item
Last-minute Bid: A bid placed in the final moments or seconds of an auction, often to outbid competitors and secure the item at the last moment
Extended Bidding: This is a feature in an online auction that automatically extends the bidding period for a given period if new bids are received near the scheduled end time, preventing sniping and allowing fair competition
Jump Bid: A significant increase in bid amount made by a bidder to outbid competitors and secure the item, often used strategically to deter further bidding
Over Bid: A bid that exceeds the current highest bid or the auctioneer's asking price, indicating strong demand and competition among bidders
Nominal Bid: A bid made with the intention of satisfying the bidding process but not necessarily to compete for the item, often used to maintain the auction's momentum or meet minimum bid requirements
Adverse Bidding: When a bidder deliberately lowers the price of an item by placing low bids or employing tactics to discourage competition
Dead Bid: A bid that is no longer valid, often due to the expiration of the bidding process or payment period or other factors
Competitive Bidding: The process of multiple bidders actively competing against each other to acquire an item, often resulting in higher sale prices
Cover Bid: This is placed by RiHaGo Auction Limited or seller on their own item to stimulate bidding, drive up the sale price, or ensure the reserve price is met when no other bids are forthcoming
Bid Cancellation / Retraction: The process of canceling, withdrawing or retracting a bid that has been placed, is often allowed only under certain conditions and within a specified timeframe during the auction process
Bid Rigging: This is the illegal collusion or manipulation of the bidding process by participants to artificially inflate prices, restrict competition, or achieve predetermined outcomes, sometimes with incriminating bids intended to trap another bidder into paying a higher price
Final Call: This is the announcement made by the auctioneer indicating that the bidding is about to close, encouraging any remaining participants to place their last-minute bids

Winning amount, buyer's premium and VAT

Prices, fees & taxes

Winning Bid Amount: The highest Bid Amount received that met or exceed the Reserve Price as set by the Seller
Winning Bid VAT: Value Added Tax @ 7.5% on the Winning Bid Amount only. It is a tax levied on the value added to the asset. It is collected by RiHaGo Auction Limited on behalf of the government
Bid Sum: Winning Bid plus Winning Bid VAT
Buyers Fee: This is an additional percentage fee charged to the buyer on top of the Bid Amount for participating in the auction by RiHaGo Auction Limited
Buyers Fee VAT: Value Added Tax @ 7.5% on the Buyers fee only. It is a tax levied on the value added to services provided. It is collected by RiHaGo Auction Limited on behalf of the government
Buyers Premium: This is the Buyer Fee plus Buyers Fee VAT as charged according to our taxes
Value Added Tax: This is a tax charged by the Federal Government of Nigeria as a percentage on the reference amount
Levy: A tax or fee imposed by the government or regulatory authority on the sale of items at auction, often calculated as a percentage of the final sale price
Tax Liability: The responsibility to pay taxes, such as VAT or other charges, on the purchase of items at auction, as mandated by the Federal Government of Nigeria. These taxes are typically calculated as a percentage of the referenced sale amount
Resale Certificate: A document provided by buyers to RiHaGo Auction Limited exempting them from sales tax on purchases made for resale, wholesale, or commercial purposes
Price Realization (All In Price): This refers to the final amount paid by the buyer for an item at auction, including the hammer price / winning bid amount, premiums, fees, and any applicable taxes or adjustments
Debit: Price realization amount to be paid
Daily Transaction Limit: The maximum debit amount that can be transacted from an account or card in a 24-hour period
Transaction Limit: The maximum amount of money that can be spent / transferred in a single transaction, set by a financial institution, payment processor, or merchant

Reserve prices, provisional and post-auction sales

Reserves & sale outcomes

Guaranteed Minimum Price (Reserve Price): This is the predetermined lowest acceptable price agreed upon between the seller and RiHaGo Auction Limited, below which the item will not be sold, providing assurance to the seller
Reserve Range: This refers to the range of prices within which the seller is willing to consider selling an item, providing flexibility while ensuring a minimum acceptable sale price
Subject to Reserve: A condition indicating that the sale of an item is contingent upon reaching a minimum reserve price set by the seller, ensuring that the item will not be sold below a certain threshold
Subject to Confirmation: A condition indicating that the sale of an item is contingent upon approval or confirmation by the seller, often used when the auctioneer does not have authority to sell the item outright
Offering Price: The price at which an item is initially offered for sale during the auction, often determined by the auctioneer based on market value and seller expectations
Passed In (Reserve Not Met): This happens when an item fails to meet its reserve price or receive any bids during the auction, resulting in it remaining unsold
Online Provisional Sale: A sale made at auction where the highest bid is subject to confirmation or approval by the seller. The sale is considered provisional until the seller accepts the bid, typically within a specified period after the auction
Online Private Treaty Offer: A proposal made by a buyer to purchase an asset negotiated privately online
Online Post Auction Sale: Transactions negotiated directly between RiHaGo Auction Limited and the buyer outside of a traditional public auction process immediately after the auction for Reserve Not Met assets
Online Second Chance Offer (Auto Bid Offer that exceeds the RP): A private offer made by the seller to a bidder who didn't win the auction but may be interested in purchasing the item at their highest bid
Auction Rerun / Re-Offer: The act of offering an item for sale again after it has failed to sell in a previous auction
First Refusal: The right granted to the seller to accept or reject an offer from a buyer before it is accepted by RiHaGo Auction Limited or before the item is offered for sale to the public
Rescission: The cancellation of a sale, typically due to an issue with the item or seller
Withdrawal Rights: The ability of the seller to withdraw an item from the auction before bidding begins, typically subject to certain conditions and fees as specified in the consignment agreement
Withdrawn Lot: An item that was initially offered for sale in the auction but was later removed before / during / after the auction

Holds, balances and settlement

Payment, pre-authorization & settlement

Pre-Authorization: Ensures buyer commitment by placing a hold on a percentage of the bid amount with the customer's financial institution debit card before accepting the bid. These held funds are released immediately if outbid during the auction or if the reserve is not met at end of auction. However, if your bid amount is the highest, meeting or exceeding the reserve price, this amount is captured by debiting your bank account, serving as a deposit toward the Realized Price
Void: The Pre-Authorization amount is Released immediately when a bidder is Outbid or when the Reserve Not Met at the End of Auction
Bid Bond: A bank draft serves as security to ensure bidders meet their payment obligations for successful bids at auction. Unsuccessful bids draft will be returned to the respective bidders
Balance Due: The outstanding amount to be paid, typically after the deposit made upon winning the bid during the auction / bidding process
Credit: Balance amount due paid
Transfer: Confirmation of Balance Due payment
Payment Plan: A structured arrangement between the buyer and RiHaGo Auction Limited / finical organization for paying the purchase price of an item in installments over time, often subject to certain terms and conditions
Deferred Payment: A payment arrangement where the buyer is allowed to delay payment for the purchased item until a later date, subject to agreed-upon terms and conditions
Vendor Financing: A financing arrangement provided by the seller to the buyer, allowing them to pay for the purchase over time through installment payments or other agreed-upon terms
Settlement Period: The timeframe during which buyers and sellers are required to complete the transaction and settle payment and delivery terms after the auction concludes
Transaction ID: A unique code or number assigned to a specific transaction. It is used to track and identify individual transactions, allowing for easy reference and retrieval of transaction details

Lots, lot numbers and condition reports

Cataloguing, lots & condition

Lot: An individual item or group of items offered for sale as a single unit in an auction
Lot Description: A detailed narrative provided by RiHaGo Auction Limited describing the item being sold, including its provenance, condition, dimensions, and any notable features or attributes
Lot Number: A unique identifier assigned to each item or group of items offered for sale in an auction, used for tracking and reference purposes
Lot Estimate: An approximate value or range provided by RiHaGo Auction Limited representing the expected selling price of an item, based on market research and expertise
Lot Status: The status of an item offered for sale in the auction, indicating whether it is available, sold, withdrawn, or passed in
Lotting Order: The sequence in which items are presented for sale during the auction, typically determined by RiHaGo Auction Limited based on factors such as category, value, and bidder interest
Lotting Process: The systematic organization and grouping of items into lots for sale at auction, based on criteria such as category, value, or provenance, to optimize bidding and sales opportunities
Lot Breakdown: The division of a large collection or group of items into smaller lots for sale at auction, allowing for greater flexibility and customization in bidding and purchasing
Condition Report: A document prepared by RiHaGo Auction Limited detailing the condition of an item being offered for sale, including any damage, restoration, or wear without warranties or guarantees
As Is, Where Is: Indicates that the item is sold without warranties or guarantees, and the buyer accepts it in its present condition and location at the time of sale
Asset Digital Management: A printed or digital catalog, including a comprehensive catalogue containing detailed descriptions, photographs, diagnostics report, conditional asset report and starting bid prices for all items available in an upcoming auction
Asset Digital Management Fee: A fee charged to the seller by RiHaGo Auction Limited for the cost of cataloging and preparing the item for sale deducted from the sale proceeds
Asset Digital Management Standards: Guidelines and criteria used by RiHaGo Auction Limited to accurately describe and catalog items for sale, ensuring transparency and integrity in the auction process
Auction Manifest (Asset List): A comprehensive publication featuring a detailed inventory and descriptions of items consigned for sale at auction, including vendor statements with provenance, reserve price, reports, and special considerations
Saleroom Notice: A last-minute update or correction issued by RiHaGo Auction Limited regarding an item being offered for sale, typically to provide additional information or address concerns raised by bidders

Bid audits and auction activity

Reports

Bid Audit: A record of all the bids placed on a singular asset during an auction including Auction Number, Tag Number, Asset Description, Bid Amount, Auto Bid Amount, Bid Type and Timestamp
Bid Audit Report: A record of all the bids placed on a singular asset during an auction including Auction Number, Tag Number, Asset Description, Buyer's Name, Reserve Price, Bid Amount, Auto Bid Amount, Bid Type and Timestamp
Auction History Report: A record of all the bids placed during an auction, including Auction Number, Tag Number, Asset Description, Buyers Name, Reserve Price, Bid Amount, Bid Status (Won / Buy It Now / Reserve Not Met), Bid Count (Bid per Asset), Number of Views (Details Page), Unique Views (Singular Visit)
Auction Coverage Report: A record of viewing activity during the auction including Web Site Visit (www.rihago.com), Auction Visit (Listing Page), Asset Visit (Details Page), Bid Count (Bid per Asset), Unique Views (Singular Visit)

Release notes and collecting your lots

Post-auction & collection

Release Note: A document issued by the Seller, granting the Buyer permission to pick up assets won and fully paid for
Buyers Collection: The strategic planning and organization for collection of items, won and paid for fully by buyers

Consignment terms for sellers

Seller terms (for reference)

Consignor (Seller / Vendor): The person or entity who entrusts their items to RiHaGo Auction Limited for sale
Non-Disclosure Agreement (NDA): This is a contract outlining the terms, conditions, fees, commissions, responsibilities, and confidentiality obligations between the seller and RiHaGo Auction Limited for items consigned for sale
Vendor Commission: A percentage of the final winning bid amount and retained by RiHaGo Auction Limited as commission for selling the item on behalf of the seller
Seller's Representative: An individual or entity appointed by the seller to act on their behalf in consigning and selling items at auction, often responsible for handling logistics, marketing, and communication with RiHaGo Auction Limited
Vendor Liability: The legal responsibility of the seller for the accuracy of information provided about the item being sold and any claims or representations made during the auction process
Seller's Disclosure: Information provided by the seller about the history, condition, and provenance of the item being sold, intended to inform potential buyers and establish trust in the transaction
Vendor Contribution: Additional services or resources provided by the seller to enhance the auction process or promote the sale of their item, such as expert appraisals, marketing materials, or exclusive previews
Settlement Statement: A document provided by RiHaGo Auction Limited to the seller summarizing the final sale results, including itemized fees, deductions, and net proceeds from the sale