– Logan Baker
If you've ever tuned into a watch auction and felt like everyone was speaking a different language – you’re not wrong. Between the jargon, the speed, and the slightly theatrical vibe, it can be hard to tell what's actually happening unless you’ve been around the block.
This glossary breaks down the most common auction terms in plain English. Just clear, quick definitions to help you follow along (and maybe even raise your paddle).
Absentee Bid
Can’t make it to the auction? No problem. Just leave your max bid in advance – on paper, over the phone, or online – and we'll bid on your behalf. You name your price ceiling, we’ll handle the rest.
If the auctioneer says they have “a bid in the book” or “the bid is with me,” it’s an absentee bid they’re talking about.
Bid Increment
This describes how much the price increases with each new bid. It's usually around a 10% increase from the prior bid, but it’s up to the auctioneer. They’ll round up or down as they see fit to keep things moving.
Buyer’s Premium
This is a percentage added to the hammer price, paid by the winning bidder, that goes to the auction house.
Always read the fine print so you’re not surprised.
Condition Report
A detailed dive into the item’s shape – scratches, restorations, quirks, and all – written by the specialists that brought the watch to auction.
Conditions of Sale
The rulebook. This is the legal agreement that spells out how bidding works, how payments are handled, and what you’re on the hook for if you win.
Read it before you raise your paddle.
Estimate
The expected price range for a lot, set by our specialists. Every watch gets a low and high estimate to help guide you on value. It's an informed guess – not a guarantee.
Fair Warning
An auctioneer’s version of “last call.” If no one else jumps in to bid, the hammer’s coming down for good.
Hammer Price
The final winning bid. It’s the number called out when the hammer falls – but it doesn’t include fees like the buyer’s premium or any applicable taxes.
Private Sales
Private Sales are transactions that happen outside the auction calendar, for clients looking to buy or sell without the spotlight. No bidding war required. We offer a service called Phillips Perpetual, which allows you to view what watches we have available for purchase all year round. Of course, we can also source a watch for you privately – just let our team know what you're looking for.
Reserve Price
The lowest price the seller will accept. It’s confidential, but it must fall either at or below the low estimate. If the bidding doesn’t pass the reserve price, the lot remains unsold.
However, if a lot is labeled as “no reserve,” it’s anyone’s game.
Registration
Before you can bid, you have to register. That means sharing your name, ID, and payment info.
No registration, no paddle.
Underbidder
So close, but no cigar. The underbidder is the highest bidder who didn’t win. You’ll hear about it a lot in post-sale group chats.
White Glove Sale
Every single lot in an auction sold? That’s a white glove sale.
Our New York Watch Department has achieved the remarkable feat of four-and-a-half years of consecutive white glove sales. We promise – it's not as easy as it looks.
About Phillips In Association With Bacs & Russo
The team of specialists at PHILLIPS Watches is dedicated to an uncompromised approach to quality, transparency, and client service. Phillips in Association with Bacs & Russo holds the world record for the most successful watch auction, with its Geneva Watch Auction: XIV having realized $74.5 million in 2021. Over the course of 2021 and 2022, the company sold 100% of the watches offered, a first in the industry, resulting in the highest annual total in history across all the auction houses at $227 million.
About Logan Baker
Logan has spent the past ten years covering the watch industry from every angle. He joined Phillips in Association with Bacs & Russo in early 2023 as Senior Editorial Manager, after previous roles at Hodinkee and WatchTime. Originally from Texas, he spent a decade in New York and now calls Geneva home.
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