How Do Auctions Work?
A Complete Guide for Buyers and Sellers
SOFAA is here to answer the question – “How Do Auctions Work?”.
SOFAA stands for The Society Of Fine Art Auctioneers and Valuers aims to promote best practice within the fine art auction industry, providing support for its members and ensuring a high standard of ethical conduct, expertise, and professionalism in the fine art auction market.
Auctions are a popular way to buy and sell a wide variety of items. Whether you’re a seasoned bidder or a first-time seller, understanding how auctions work can help you make informed decisions and get the best outcome.
Here’s a concise, helpful guide on what to expect when selling or buying at auction, but it is always important to read the specific terms and conditions relating to the company you are dealing with.
Selling at Auction: Step-by-Step
1. Getting Your Item Valued
The process begins by having your item valued. Most reputable auction houses offer regular Valuation Days, often held weekly or monthly, where you can bring in items for a free assessment.
For larger or more valuable items, such as furniture or artwork, home visits can usually be arranged. Increasingly, auction houses also accept digital valuations — where you email or upload photographs and details of your item for appraisal. This can be quicker and more convenient, especially for one-off or high-volume sellers.
2. Receiving an Auction Estimate
Once your item has been assessed, the auctioneer will usually provide an auction estimate — a price range they expect the item to achieve. You will be given a receipt or consignment form giving the details of the items to be valued or sold and the company’s terms and conditions.
3. Pre-Sale Advice
Prior to the auction, you usually be sent pre-sale advice, but this may not be the case in bulk, low value consignments, which are often sold without reserve. The pre-sale advice will contain useful information on the listing of your item whether this is for inclusion in a printed catalogue or online or both.
Buying at Auction: What You Need to Know
1. Registering to Bid
Before you can participate in an auction, you must register with the auction house. First-time buyers are usually required to provide proof of identity (e.g. a passport or driving licence) and address (e.g. a recent utility bill or bank statement).
Registration can often be completed online, in person on the day of the auction, or in advance via email or phone. But some higher value lots may require more time so it is always best to register as soon as possible.
2. Ways to Bid at Auction
There are several convenient ways to place a bid, but you should check with the auction house in good time what options are available for the sale you are interested in:
- In-Person Bidding: Attend the auction and raise your hand or paddle when you're ready to bid. This is a traditional and direct way to participate.
- Commission or Absentee Bids: Submit a written bid in advance stating the maximum you're willing to pay. The auctioneer will then bid on your behalf, aiming to secure the item at the lowest possible price above any reserve.
- Telephone Bidding: Request a call from the auction house during the sale. A staff member will relay the bidding in real time, allowing you to place your bids over the phone. Spaces are usually limited, so book early.
- Live Online Bidding: Many auctions are streamed online with live audio or video. You can bid in real time from anywhere. Be aware that online bidding platforms often charge additional fees, which are clearly stated beforehand.
3. Payment and Collection
If you win an item, you are usually expected to pay promptly, often within a few working days. Accepted payment methods vary, but may include card, bank transfer, or online payment platforms.
Cash is increasingly non accepted.
Once payment is complete, you can arrange collection or delivery of your purchase. Most auction houses offer a delivery service or can recommend local couriers.
Making the Most of the Auction Process
Auctions offer an exciting and often rewarding way to buy or sell items. Whether you’re decluttering, investing, or just browsing for something unique, understanding the process gives you a better chance of success. Always read the auctioneer’s terms and conditions carefully and ask questions if you’re unsure about any part of the process.
By preparing ahead and knowing your options, you can navigate the auction world with confidence.
