Will your Items Sell Best at Auction?

Selling art, antiques, collectibles, and home contents through auctions is often seen as the go-to option. However, it's crucial to recognize that auctions aren't universally suitable for every item or seller. For those unfamiliar with the auction process, it can be daunting and filled with potential pitfalls.

Finding the Right Auction House

When consigning items to an auction, the initial challenge is identifying the most suitable auction house. This can be a complex task, which we'll delve into further in a future blog post. Assuming you've successfully located an interested auction house, the next step involves negotiating the terms and conditions of the sale before finalizing the contract. Auction house fees, including commissions and additional charges for services like photography and cataloging, can be substantial. Proper marketing, including comprehensive cataloging and professional photography of your collection, is essential to attract potential buyers. It's worth noting that not all auctions accept every type of item; negotiations are often best handled by a broker or appraiser with established relationships with auction houses.

Predicting Auction Results

At a public auction, outcomes can vary widely. Even high-quality items in the right auction setting, adequately promoted, can go unsold. Conversely, seemingly modest items may unexpectedly fetch high prices in competitive bidding situations. While experts may have reasonable expectations, auction results are ultimately unpredictable until the final gavel falls and the transaction is complete.

Considering Alternative Sales Channels

While auction houses can be excellent venues for selling items, they may not always be the most cost-effective option, especially for modest items. One of the most significant concerns for consignors is what happens if items fail to sell or if the entire collection goes unsold. In such cases, consignors are typically required to promptly retrieve unsold items to avoid incurring storage costs and must pay related fees to the auction house, irrespective of the outcome. While post-auction sales may occur, buyers often make low offers, having witnessed the items go unsold.

Other selling avenues, such as private sales and estate sales, offer alternatives worth considering. Private sales, characterized by discreet transactions, appeal to buyers seeking privacy and exclusivity. Gallerists specializing in private sales can connect sellers with buyers willing to pay a premium for coveted items. Estate sales, staged in homes filled with property, can generate excitement among buyers, leading to rapid sales and potential premiums for desirable items.

Seeking Professional Guidance

In navigating the complexities of the art market, consulting with a trustworthy, professional appraiser familiar with various sales channels is invaluable. While auction houses can provide advice, it's essential to remember that they primarily profit from consignments, not consultations. Independent appraisers can offer unbiased guidance tailored to your best interests, ensuring you explore all available options before making a decision.

The art market can feel like the Wild West, with few regulations governing transactions. To maximize your selling potential, partner with an experienced appraiser who understands the nuances of different marketplaces. Contact the Magnussons at 973-425-1550 to discuss selling your home contents and explore the most suitable sales channels for your valuable items.

Co-Authors: Lynn Magnusson, ASA, AAA and Becky Lipnick, Communications Coordinator