What to Ask at The Auction

Buyer Beware! Ask the Right Questions at Auction…

Ask the wrong questions at and you WILL regret it

ASKING THE RIGHT QUESTIONS AT AUCTION

When attending an auction, it is crucial to allocate sufficient time to thoroughly inspect the lots on offer. Take advantage of this opportunity to approach the auction house staff and inquire about any questions or concerns you may have. Reputable auction houses typically employ knowledgeable staff members and specialists who can provide valuable insights and information.

In certain auctions, especially those specializing in antiques or collectibles, authenticity holds paramount importance. Even if the auction house has a well-established reputation and expertise, it is essential to maintain a healthy dose of skepticism. Developing a discerning eye that can identify genuine items is a skill that comes with study and comparison. Engaging in discussions with the experts who authored the catalogue entries is a worthwhile investment of your time.

Don’t hesitate to ask the expert, “What convinced you that this work is genuine?” A reputable expert will be eager to address this question, as it allows them to showcase their knowledge and expertise in the field. This dialogue can offer valuable insights and enhance your understanding of the authenticity of the item.

After considering authenticity, factors such as subject matter, form, and condition should also be taken into account when deciding which items are worth bidding on. Particularly in the high-end antiques and collectibles market, it is advisable to consult a highly qualified restorer who specializes in the specific field. Obtaining a professional written opinion on the quality of the item can require an investment of time, money, and effort. However, this investment will prove worthwhile in the long run. For many collectors, knowing when to decline a purchase and wait for a better-conditioned example to become available on the market is a key to success.

Rarity is another crucial aspect to consider. The concept of rarity can vary significantly across different categories and evolve over time. Additionally, the factors of provenance and historical significance can imbue an otherwise common art object with a distinct rare quality. For instance, Winston Churchill’s hat holds great rarity and historical significance, while a regular hat hanging on a hallway hat stand, albeit old and sentimental, lacks such qualities.

Taking the time to thoroughly examine auction items, seeking expert opinions, and considering factors such as authenticity, subject matter, form, condition, and rarity are essential in making informed bidding decisions. By developing knowledge and seeking expert guidance, auction-goers can enhance their understanding and increase the chances of acquiring valuable and significant pieces for their collections.

How to Bid at Auctions

With the Right Bidding Strategy YOU Can Make a Killing at Auctions

BIDDING PROCESS & STRATEGY AT AUCTION

Once you have identified the auction lots you are interested in, it’s important to understand the bidding process and develop a strategy. Here are some key points to consider:

1. Registration: Check whether you need to register before the auction starts. Most auction houses will require you to fill in a form with your personal details, such as your name, address, and phone number. Some may issue you with a bidder’s number or paddle, while others may ask you to call out your name during bidding.
2. Payment Methods: Inquire about the acceptable payment methods. While cash is often an option, some auctions may also accept cheques or credit cards. For significant purchases, you might be asked to provide bank references.
3. Auction Duration: Sales can last for several hours or even days, especially in the case of country house auctions. If the lots you are interested in are towards the end of the sale and you don’t want to sit through the entire auction, check if the catalogue provides a schedule or ask about the number of lots typically sold per hour. This information will help you plan your arrival time accordingly.
4. Arriving on Time: Make sure to arrive early or allow extra time so that you don’t miss out on lots you are interested in. There is nothing more frustrating than arriving late and discovering that the item you wanted has already been sold at a lower price than you anticipated.
5. Auctioneer’s Role: When the auction begins, the auctioneer will introduce themselves and start calling out each lot number to be sold. They typically begin the bidding at a figure slightly below the lower estimate. The auctioneer will have access to reserve prices (minimum prices set by the seller), indicated in their copy of the catalogue. They will know when an item can be sold based on these reserve prices.
6. Bidding Increments: Bidding progresses as participants signal their bids to the auctioneer through gestures like waving or nodding. The auctioneer will call out the bids in regular increments, which vary depending on the value of the item. Increments can range from small amounts like £5, £10, or £20 to larger increments of £100 or even £1,000. Typically, as bidding intensifies, the increment sizes may decrease.

Developing a bidding strategy:

• Set a Budget: Determine your maximum bid for each item based on your budget and valuation research.
• Stick to Your Limits: It’s essential to resist the temptation to exceed your predetermined budget during the heat of bidding. Avoid getting caught up in the excitement and emotions of the auction.
• Bid Confidently: Clearly signal your bids to the auctioneer, whether by raising your paddle, nodding, or calling out your bid. Projecting confidence can discourage other bidders and show your determination.
• Monitor Competing Bids: Pay attention to other bidders’ actions and bidding patterns. Observe their body language, gestures, and bidding history to gauge their level of interest and potential limits.
• Stay Focused: Concentrate on the specific lots you are interested in and avoid getting distracted by unrelated items. Maintain your focus and bid strategically on the lots that align with your preferences and valuation.

By understanding the bidding process, being well-prepared, and adhering to your budget and strategy, you can approach auctions with confidence and increase your chances of securing the lots you desire at a price within your limits.

If after viewing the relevant auction lots you decide that you might want to bid on one or more of the items, then the first thing to do is find out whether you should register. Most salerooms will want you to fill in a form with your name, address and phone number before the sale commences; some will issue you with a number or a paddle to hold up should your bid be successful, while in others you simply call out your name and fill in the form at that time.

If you are not going to pay in cash then ask whether a cheque or a credit card will be acceptable as a method of payment. If you intend to spend a rather large sum of money you may have to supply bank references.

Sales may last for several hours. Indeed, sales at country houses can last for several days. If the lots which interest you are towards the end of a sale and you do not want to sit through the whole auction, check the catalogue to see if it gives any schedule for the day, or find out how many lots the auctioneer generally sells per hour. Usually, this seems to work at about 90-100 lots per hour, but remember to allow yourself a bit of extra time so you don’t arrive too late – there is nothing worse than arriving to find that the piece you are interested in has been knocked down to someone else, especially if it has gone at a price well under your initial estimate.

When the sale begins, the auctioneer will introduce them self and quickly get down to business. He will start by calling out each lot number to be sold and will start the bidding at a figure which is usually slightly below the lower estimate. In his copy of the catalogue he will have the reserve prices marked in red so he will know when an item can be sold and when it cannot. As the people present at the auction signal to him by waving or nodding, he will call out their bids in regular sums called increments. Depending on the value of the piece, the bidding could raise in £5, £10, £20, £100 or even £1,000 increments. The larger the value, the larger the increment. The increment will also tend to decrease as the bidding reaches a climax.

The auctioneer will indicate that bidding is finished by banging a small hammer called a gavel on the rostrum and recording the sale and the name or the number of the successful bidder. Many people who have never been to an auction before often worry than an ill-timed cough or sneeze could be mistaken as a bid and land them with an unwanted purchase. Anyone with experience at auctions will tell you that this is unheard of.

When participating in bidding for the first time, it’s important to be assertive and ensure your bids are clear and prompt. In a crowded sales room, catching the auctioneer’s attention can be challenging, but don’t be discouraged. If you feel that the auctioneer isn’t noticing you, don’t worry too much. Often, the auctioneer will only accept bids from a few individuals at a time, and when someone drops out, they will scan the room for others to join in. This presents an opportunity for you to jump in if you’re still within your bidding limit.

Once you have successfully secured an item through your bid, it’s crucial to be aware that you will be responsible for payment. Remember that in addition to the final hammer price (the price at which the item is sold in the sale room), you will also need to factor in the auctioneer’s commission. Typically, the auctioneer’s commission ranges from 5% to 15% of the hammer price, and value-added tax (VAT) is usually added to this commission. Therefore, it’s important to consider these additional costs when determining your bidding limit.

Paying the auctioneer’s commission and VAT is a standard practice in auctions, and these fees contribute to the overall expenses associated with purchasing an item. It’s crucial to be aware of these financial obligations and factor them into your budget when planning your bidding strategy.

Glossary of Auctioneers’ Terms

As with any professional body, auctioneers use certain terms whose meaning may not be immediately clear to the novice. Each auctioneer develops his/her own language style and the following phrases are amongst those most often heard on the auction floor.

“It’s against you”

This means that the auctioneer has received a bid from another person, has a bid from a telephone buyer, has a bid from a potential buyer or is operating the seller’s reserve against your bid. The phrase will be used to identify a bidder who has already entered the bidding. If it’s against you, you will no longer have the leading bid.

“It’s against the room / the bid that’s here / on the phone”

Here the auctioneer is making it very clear that the bid being given is either in his book or on the telephone. If it’s in his book, it could be either a reserve price or another bid. Where there are multiple telephone bidders at the larger auction houses, then it is often the case that the telephone bidder will be referred to by name so that confusion does not set in.

“I’m selling this at ….”

This phrase generally means that the reserve price set by the seller has been met and a bid will secure the item.

“With the hammer”

Occasionally a bid will be made just as the hammer is coming down. Here the auction has the right to cancel the first “sale” and continue the bidding. This practice can be very irritating especially for the successful bidder, and auctioneers also retain the right to allow the first sale to stand, encouraging the second bidder to bid more quickly in the future.

“Going once, going twice …”

In this author’s experience, it is very rare to hear this actually said in an auction room and is more usually the domain of movies and amateur auctioneers. A more common gentle reminder that the auctioneer is about to bring the gavel down is a phrase such as “all through then” or “last chance then”. This achieves the same results in a less dramatic manner and makes the auctioneer look less foolish if and when the bidding picks up again and goes on for several more increments.

“Passed”, “bought in” or “unsold”

Any of these words will be used when the auctioneer brings the hammer down on an unsold lot.

The Ring

In the UK something known as “The Ring” is said to exist. This is an illegal conspiracy to deflate the prices paid at auction and is achieved by two or more dealers agreeing in advance not to bid against each other. One of them – the ring leader – bids on behalf of all of them. They then re-auction the lot or lots amongst themselves later on an activity known in the trade as “the knock-out”. There is no doubt that Rings do exist in the UK from time to time although you would be generally very hard-pushed to prove their existence. From a seller’s point of view he should be protected from the Ring if the auction house has put a proper reserve on the piece.

From the buyer’s point of view, there are some people who believe that if the Ring is active it is possible for a private buyer to secure the lot at a lower price than might otherwise be the case. On the other hand, others believe that a Ring protecting its own interest will run up the bidding in order to make a private buyer pay over the odds, and thereby discouraging them in the future. However, if you stick to your own pre-set limit, a Ring will not be able to affect you in the slightest.