Loading...
The first and one of the most important steps towards successfully selling a collection is choosing the right auction house. Not all auctions are the same: some specialize in Old Master paintings, others in contemporary art, and still others in numismatics or antique furniture. It is important to find a house whose specialization matches the profile of your collection.
The first and one of the most important steps towards successfully selling a collection is choosing the right auction house. Not all auctions are the same: some specialize in Old Master paintings, others in contemporary art, and still others in numismatics or antique furniture. It is important to find a house whose specialization matches the profile of your collection.
When choosing, you should pay attention to the auction house's reputation, its history in the market, and reviews from previous clients. It is also important to study the terms of cooperation: the commission size, the presence of additional fees for insurance, storage, and marketing. Don't hesitate to contact several houses to compare offers and choose the most favorable terms.
After choosing an auction house, the item appraisal stage begins. It usually proceeds in two stages. First, a preliminary online appraisal is conducted: you send high-quality photographs and a detailed description of the items to the auction house's experts. Based on this data, they form an initial opinion about the collection's value and auction potential.
If the items are of interest, you will be invited for an in-person examination. Specialists will carefully examine each item, verifying its authenticity, condition, provenance, and any restorations. The final appraised value, or estimate, directly depends on these factors.
| Agreement Clause | Description |
| Seller's commission (Vendor's commission) | A percentage of the final hammer price that the auction house withholds as payment for its services. |
| Estimate | The preliminary appraised value of the lot, which will be listed in the catalog. |
| Reserve price | The confidential minimum price below which the lot cannot be sold. |
| Insurance | Terms of insurance for the item while it is in the possession of the auction house. |
| Marketing expenses | Costs for photography, inclusion in the catalog, and other promotional activities. |
| Payment terms | The period within which you will receive payment after the successful sale of the lot. |
Once the appraisal is complete and both parties agree with its results, it is time to formalize the relationship legally by signing an agreement. This document, often called a commission contract or consignment agreement, records all the terms and conditions for selling your lots at auction.
Carefully study every clause of the agreement. It must clearly stipulate all financial and organizational details. This is your primary document protecting your interests as a seller, so it's crucial to understand all its provisions before signing.
One of the key points in the agreement is setting the reserve price. The reserve price (or reserve) is a confidential minimum agreed upon between you and the auction house. The auctioneer is not permitted to sell your lot for less than this amount.
Having a reserve price protects you from selling an item at an unfavorable price in case of low buyer activity. If the bidding does not reach the reserve mark, the lot is considered unsold and is withdrawn from the auction. As a rule, the reserve price is set at or slightly below the low estimate.
It is important not to confuse the reserve price with the estimate. The estimate is a public forecast by experts about the possible sale price, which is printed in the catalog to guide buyers. The reserve price is your safety net, and it remains confidential information known only to you and the auctioneer.
After the agreement is signed, the auction house begins promoting your lot. Quality marketing is key to attracting the maximum number of interested buyers, which directly affects the final sale price. A professional team handles all aspects of pre-sale preparation.
The process begins with professional photography and the creation of an expert description for the catalog. Next, information about the lot is distributed through various channels to reach the target audience of collectors and investors worldwide.
On the day of the auction, your lot is put up for bidding. You can follow the process in person, online, or by phone. If the final hammer price reaches or exceeds the reserve, the lot is considered sold. After this, the buyer is obligated to pay for their purchase within the timeframe set by the auction, typically from a few days to a month.
Once the auction house receives full payment from the buyer, it settles the account with you. The seller's commission and other expenses stipulated in the agreement (e.g., for insurance or appraisal) are deducted from the final sale price. The remaining amount is transferred to your bank account.
The timeframe for receiving payment is typically 30 to 45 days after the auction date. This period is necessary for the buyer to make the payment and for the auction house to process all financial transactions. After the funds are received, the transaction is considered fully completed.
