Auction houses

A large number of companies are now proposing artworks at auction.

With the advent of the internet, this sector has undergone tremendous changes. The number of players has increased dramatically, the arrival of platforms to bid online in real time has democratized the access and acquisition process and the notion of territory deserved has lost much of its importance.  Today, most auction houses offer a hybrid approach where the prospective buyer can bid using the traditional approach (in person, by phone or by leaving an "absentee bid") or online.

However, whatever the preferred approach, the process remains expensive for both the seller and the buyer.

It is not our intention here to present an exhaustive list of all active visual arts auction houses. We reduce all this to three (3) subsets, namely:

1.   Firms providing services from Canada
2.   The "aggregators", mainly internet companies, which include the provision of many smaller scale auction houses
3.   The "Majors" active internationally

Firms providing services from Canada

The aggregators

The "Majors"

Remember:

• Your are buying

  • We have recently witnessed a proliferation of auction sales aggregators.   Two notable consequences:
    • This inevitably leads to many overlaps between them.   We have only selected the sites that we find most interesting here.   For a more complete list, see the relevant section on the site "Achetez de l'art".
    • And an explosion of "fake" offered at prices "defying any competition".   Live Auctionners is particularly pointed out to welcome on its site so-called auction houses whose raison d'être is to sell "fake" of all kinds.
  • Other recent initiatives:
    • See You Next Thursday which defines itself as the very first auction house on Instagram.
    • ​The Auction Collective.   Main features: directly from the artists and no "buyer's premium".
  • Some European countries and Australia to date (for residents) impose a "droit de suite" likely to increase the cost of your work.  Note that the repayment of that charge is or, more precisely, was the responsibility of the seller, not the buyer.   A recent decision (2015, February #ECLI:EU:C:2015:119) of the Court of Justice of the European Union (CJEU) has changed if not the obligation but the identity of the party who is to bear the load. Now the seller (auction house, art gallery) can contractually pass on this burden to the buyer. So get well informed about it before proceeding.   Is this applies to you? Use our calculator to measure its impact.
  • Many charities or associations hold auctions benefits where works of art are available to collectors.
  • Transport costs can quickly become prohibitive. Always get inform before bidding, especially if you intend to do business with an overseas auctioneer.
  • Ship "in tube" your unframed prints or prints you plan to framed differently.  Less expensive and less risky.
  • Unless exceptional lot, hold your bid in the minimum range (between the"reserve" price and the minimum evaluation) identified for the work in question.  Keep in mind that the acquisition of a work of art in auction or elsewhere, is NOT an investment and that if one day you or your estate had to depart from the work in question by the same ways (auction), the prospective buyer will have to pay an amount representing approximately 165% (the difference between the amount you will receive and the amount the buyer will then have to pay ) of the amount you paid for before you can recover your money!  In 95% of cases, the only real winners are the intermediaries, I mean the auction house ... and the government.

     

• You are selling

  • If you plan to sell at auctions, keep your expectations modest.  The amount suggested for your work by the auctioneer is generally quite significant of the market value you will get for your artwork.
  • The percentage retained by the auction firm identified as the "buyer's premium" has been steadily increasing since the 1980s.  Currently it is around 20-25% for works in the entry level category ($1,000-$10,000).   The same premium was around 8-10% 40 years ago.   On top of that, there is a fee of about 3% if you bet online on generic platforms.    That's a lot of money going into the pockets of middlemen and you, the seller, are the one paying for it.
  • Remember that most of the works sold in auctions are at an amount between the "reserve" price (usually about 80% of the minimum evaluation) and the amount of the proposed minimum evaluation (See: Westbridge, How to make Money Selling Art at Auction, 2000. p. 111).
  • If the evaluation made by the auctioneer does not suit you, take your work home.  The worst thing to do is to insist on a high "reserve" price which may result in a non-sold lot ("Bought-in") for which you will have to assume the cost!   Remember that a non-sold work (" Bought-in") will cost you money (at least 10% of the final offer received if one includes all fees) and your artwork will be considered "burned" by the market.
  • Auction sale should only be considered as an extreme solution and be associated with a form of liquidation.
  • See information above about transport costs.