Understanding wine auction terminology is essential for bidding with confidence. While auctions may seem complex at first, learning a few core terms quickly removes uncertainty and allows bidders to focus on what matters most: evaluating wines, setting strategy, and enjoying the process. Whether you are new to auctions or looking to deepen your knowledge, this guide breaks down the most important terms you’ll encounter when bidding.
A reserve price is a confidential minimum agreed upon by the consignor and the auction house. If bidding does not reach this threshold, the lot will not sell and is said to have “passed”. Importantly, a reserve cannot be higher than the low estimate published in the catalog. Reserves protect consignors while ensuring transparency for bidders, even though the exact number is not disclosed.
The hammer price is the final bid when the auction closes, either when the gavel falls in a live auction or when the clock expires in an online auction. This is the winning bid for the lot, but it is not the final amount paid.
The auction house adds a buyer’s premium to the hammer price, which is a published percentage that represents the auction house’s commission. Unlike retail pricing, where margins are built into the sticker price, auctions are upfront about this fee, allowing bidders to understand exactly how total cost is calculated.
A lot is the unit being sold at auction. A lot may consist of a single bottle, a full case, multiple bottles of the same wine, or a curated grouping. Lots can also include large-format bottles or mixed selections designed around a theme.
Because lots are pre-assembled by the auction house, bidders purchase the grouping as offered rather than selecting individual quantities as they would in a retail setting.
Estimates are value ranges assigned to each lot by the auction house, typically based on recent global auction results, market demand, rarity, and condition. Estimates are intended as guidance rather than pricing guarantees. Unlike retail prices, auction estimates invite bidders to decide what a wine is worth to them, often influenced by personal goals, drinking timelines, and market knowledge.
A horizontal collection consists of three or more different wines from the same vintage. Horizontals allow collectors to compare producers side by side under identical vintage conditions and are often appealing for tastings or educational exploration.
A vertical collection, by contrast, includes multiple vintages of the same wine. For example, a vertical of Romanee Conti Domaine de la Romanee Conti might span consecutive vintages from 1990 through 1995. Verticals are prized by collectors for showcasing how a wine evolves over time and are often sought after for both drinking and long-term cellaring.
Provenance refers to the ownership and storage history of a wine. Strong provenance helps establish authenticity, condition, and value, particularly for rare, old, or high-value bottles. Auction houses carefully evaluate provenance before accepting wines for sale.
Common provenance and storage descriptions include:
Condition notes describe the physical state of the wine and its packaging. These notes may reference label condition, capsule integrity, and original packaging such as OWC (original wooden case) or OC (original carton).
One of the most important condition indicators is ullage, also known as fill level. Ullage refers to the space between the wine and the cork. Lower-than-expected ullage can indicate seepage or oxidation and may affect value, particularly for older wines. Accurate condition reporting allows bidders to make informed decisions with confidence.
By understanding wine auction terminology, bidders gain clarity, confidence, and control. These terms provide a shared language that allows collectors to evaluate lots accurately, compare offerings across auctions, and bid with intention rather than uncertainty. Over time, this knowledge enhances not only auction success, but also overall enjoyment and long-term collecting strategy.
Now that you’re familiar with key wine auction terms, explore upcoming auctions and create an account so you’re ready to participate with confidence.