Hardy Antiques - More selling at auction

More selling at auction

Picture the scene: an auctioneer's receptionist is on the phone to a client:

"Yes, Geoff, I know that you owe us £125."
"....."
Yes, I agree, but the bookcase didn't sell at the reserve"
"...."
"I know, but the charge for returning it was more than they sold for"
"....."

It's a genuine conversation. I was standing there listening to half of it. And it took place because the client hadn't made himself aware of the likely costs of selling by auction. If they come out of the blue, they can be a bit of a shock. Here's the second in my attempt to help you avoid the same mistakes that Geoff made (part 1 is over here. Probably best to check that out if you've never sold at auction before, but come back here after?).

FIRST UP: DIY
First on the list is transport. If you possibly can, deliver the whateveritis yourself. Auctioneers are not charities, and you'll pay full 'removers' charges. And if its big, heavy or both, these can soon add up. And if the item doesn't sell you'll have to think about paying for the return journey too: see the phone call above. So here's my tip: DIY, Deliver It Yourself.
Next up, here's a list of the possible charges you need to consider: auction houses differ, so check. You may have to pay a lotting fee, you may not. You may find there is a minimum charge, you may not. You may be charged extra for internet listing, you may not, you may pay for cataloguing, you may not. You will probably have to pay for pictures; very rarely you may not. I suppose what I am saying is ask about all of these and make sure you have got a handle on all the costs involved before you commit.

THERE'S NO ESCAPE
There's one charge that you can't escape, no matter which auction house you choose, their commission. It varies. In one place I go its as low as 5% of the hammer price and zero on sales more than £2000, but that is as rare as a real Chippendale piece. Mostly they hover in the mid teens for sellers. Plus VAT. The dreaded VAT. Check where and when its due on fees. Here's a good tip: if you have a big ticket item to sell, or a sizeable number of things that tot up to a reasonably large total, you can ask if there is any negotiation on the commission charged. Some will, some won't.

PAPERWORK & RESERVES
Other things you need to know are that you should always get a receipt for your item/s when you deliver it/them. This is usually a carbon of the sheet they fill in with your details, the description of the items, their estimate and any reserve you've agreed. Its important to get this right because, although you will get a chance to check it, the catalogue entry will be based on what it says here. The reserve is an important element too. Nine times out of ten you'll find that if something doesn't sell and you've got to go and fetch it, you'll be frustrated and wish you hadn't 'reserved' it. But, if there is something you feel quite strongly about, then I suggest a reserve. This should be just below the point where you'd cry if it sold for less. I think I'm right in saying that the reserve has to be at or below the bottom estimate, or vice versa. Take advice at this stage. They know their customers. Decide too if you want a fixed reserve, which gives them no flexibility, or a discretionary reserve which gives them a bit of leeway. If the bidding gets to within a gnats whisker of your reserve but stops, if they have discretion they can sell it. Also, do check costs if you choose to reserve: you may still have to pay some fees even if the item doesn't sell - lotting fees, pictures etc.
If you set a reserve and the item doesn't sell it is usually assumed that the item will be re-entered without reserve next time, unless you instruct them otherwise. You may choose to have it back, submit with a lower reserve, or let it go at no reserve. And, as no two auctions are the same, next time it might make more - or not.
And that's it really. You will receive letters before the sale with details that should match your original receipt - if not get on the phone immediately - and then another letter or email straight after the sale with the results but usually not showing the charges. Some weeks later you'll finally receive the full receipt with deductions itemised and either a BACS transfer or a cheque. It's not necessarily quick getting the money when you sell at auction. Anyways, once it turns up, that's it. Job done.
Do remember, some items will do better than you thought, some won't do as well. I think the stats are that estimates are right LESS than half the time. That means more that half the items that go through our nation's auction houses go for more or less than the estimate. Which means that auction houses are a more or less good place to sell your stuff. Good luck, do let me know how you get on over on Facebook, via the button just below

Sylvie did just that and left the following very useful point: If consigning a number of items which may not always be sold on same auction date, keep a check on them. I queried an unsold lot only to be told it had been sold but hadn't had payment. Then they said they couldn't find it, eventually it miraculously got sold in their next sale for half the lower estimate

30/05/2016 Posted by Paul Hardy Tags: antiques, selling, auction

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