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AUCTION RESOURCE GUIDE AUCTION RESOURCE GUIDE

• MARKET VALUE: The highest price in terms of
money which a property will bring in a com- how To BecoMe AN AucTioNeer
petitive and open market under all conditions
requisite to a fair sale, the buyer and seller, Being an auction professional involves hard work
each acting prudently, knowledgeably and and countless hours of practice and training. You
assuming the price is not affected by undue can consider attending auction school. There are
stimulus. auction schools and programs throughout the U.S.
• MINIMUM BID AUCTION: An auction in which and abroad that can provide you with the training
the Auctioneer will accept bids at or above a and education you need to start your career in the
disclosed price. The minimum price is always auction industry. In addition to learning the art of
stated in the brochure and advertisements and bid calling, auction schools provide students with
is announced at the auctions. training on marketing their services and sales, as
• MINIMUM OPENING BID: The lowest ac- well as provide students with training on starting
ceptable amount at which the bidding must and operating an auction business in their state.
commence. Some states require licensure and continuing edu-
• OPENING BID: The first bid offered by a bidder cation to work as an auctioneer.
at an auction. In Texas, you are required to be a licensed auc-
• ONLINE/VIRTUAL AUCTION: An auction that is tioneer. To confirm requirements go to the Texas
for online bidders only and is not conducted in Department of Licensing web page at www.tdlr.
front of a traditional live audience. These auc- texas.gov. In Texas, there are also optional licenses
tion types may have reserve items in which the for Associate Auctioneers and the requirements
auctioneers bid in order to protect the reserve. are regulated by the TDLR.
• ON-SITE AUCTION: An auction conducted on
the premises of the property being sold. What are the requirements for an auctioneer
• pReVieW: Specified date, time and place prop- license in Texas? (www.tdlr.texas.gov)
erty is available for prospective buyer viewing To be eligible for an auctioneer’s license you must:
and evaluation. Also known as an INSPECTION.
• ReseRVe: The minimum price that a seller is • Be at least 18 years of age;
willing to accept for a property to be sold at • Be a citizen of the United States or a legal alien;
auction. Also known as RESERVE PRICE. • Hold a high school diploma or a high school
• RINGMAN: A Ringman is a part of the live auc- equivalency certificate;
tion team, who is responsible for interpreta- • Not have been convicted of a felony within five
tion of buyer interest and effective communi- years of the application date;
cation of buyer participation to the auctioneer. • Have completed 80 hours of classroom
• sealed Bid: A method of sale utilized where instruction at an Auction school approved by
confidential bids are submitted to be opened TDLR; and
at a predetermined place, date, and time. • Pass an Auctioneer licensing examination OR
Many government auctions occur in this • You may be exempt from taking the Auctioneer
manner, as they accept bids from around the examination by providing proof of being
country (and probably the world!). employed by an Auctioneer for two (2) years
• selleR: Entity that has legal possession and and have participated in at least ten (10) auctions
ownership of any interests, benefits or right during that employment period. However, you
inherent to the real or personal property. will still need to meet all of the requirements
• TeRms and condiTions: The printed rules listed above, including going to a TDLR approved
of the auction and certain aspects of the auction school.
Purchase & Sale Agreement that are read and/
or distributed to potential bidders prior to an
auction sale.

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