Selling at auction can be an exhilarating and rewarding means of achieving the best value for items, pieces of art, vintage cars, or even real simply by creating in buyers’ minds a sense of urgency and competition that often pushes the prices up beyond what traditional methods of selling can achieve. Still, if one has never done it before, the process can sometimes appear daunting. This guide will help you through it, step by step, to make the selling at auction a smooth and hassle-free experience.
Why Choose Auction as a Selling Method
Auctions have a number of advantages over more traditional methods of selling. First, there is the assurance of attracting an audience of potential buyers that includes collectors, investors, and enthusiasts who are actually looking for what one has to offer. This competitive environment can drive up sale prices, especially for rare or highly sought-after items.
More still, auctions provide a timeline for the sale. Other than listing something and awaiting offers, auctions do have a set date and time when bidding closes. This can be particularly appealing if you’re looking for a quick sale.
Types of Auctions to Consider
There are many types of auctions to choose between, and your goods and your requirements will depend on your choice. Live ones take place in person, and bidding happens in real-time.
Online ones take place via a website and have a worldwide following.
Some sell a combination of both, with bidding in-person and via website both at the same time.
Research and choosing an auction for your goods is a must. For example, antiques and works of fine art sell particularly well in a live auction, but collectibles and specialist items sell best in a web environment.
Preparing Your Item for an Auction
Auction success is facilitated with preparation. How your goods are prepared will depend on their current state, and getting them restored and cleaned can make a big improvement in competitive bidding.
Documentation and Provenance
If your goods have a provenance, such as having sat in a famous collection or being owned by a famous owner, then make documentation of it high on your agenda. History, such as provenance, will boost your goods, and collecting any documents, appraisals, and documentation proving its background will make your goods worth even more.
Professional Appraisal and Valuation
An expert appraisal is worth having, and an expert will value your goods accurately, and a valuation will enable a fair reserve price (the minimum price in your head for your goods). For high-value items, an appraisal and valuation is a must, and it will make a big impact in not getting your property undervalued.
Choosing an Auction House for Your Needs
Not all auction houses are equivalent. It’s important to use one with a high level of expertise in whatever one’s offering for sale. For example, in an instance where one’s offering artwork, utilize an auctioneer with a high level of expertise in the artwork marketplace. In an instance where one’s offering a car, utilize an auctioneer who’s experienced in car sales.
Research and Reputation
Research potential auctioneers and view past sales, buyers, and overall reputation in a field. There’s no shame in saying no when a seller takes an opportunity to obtain references or examples of similar items sold in a similar format.
Fees and Terms
Auctioneers will levy a seller’s fee, a proportion of a successful sales price. Ensure one’s aware of a fee schedule and any additional expenses such as marketing and storing for a long period of time. Ensure one reads through the terms and conditions in an agreement in an auction, including a minimum price for an article, as well as terms for payment following an auction.
The Auction Day: What to Expect
On the day of the auction, your item will be presented to bidders, either in person or online. The auctioneer will start the bidding at a predetermined price and encourage participants to place their bids. The process can be fast-paced and exciting, especially if there’s strong competition among bidders.
Setting a Reserve Price
A reserve price is the minimum amount you’re willing to accept for your item. If the bidding doesn’t reach this price, the item will not be sold. Setting a realistic reserve price is crucial—it should reflect the item’s value while also being attractive to bidders.
After the Auction: Closing the Sale
If your item sells, the auction house will handle the payment process and transfer the funds to you, minus their commission. If the item doesn’t sell, you can discuss alternative options with the auction house, such as relisting it or exploring other selling methods.
Conclusion
From a piece of art to a car, even to real estate, selling at auction can be an exciting and rewarding method to achieve the best value for your items. An auction creates urgency and competition among buyers, many times driving the price up much higher than could be accomplished through traditional selling methods. On the other hand, if one has never been through it, the process may be somewhat daunting. This guide will walk you through the steps to get started with selling at auction, ensuring a smooth and successful experience.
