learn ^ buy and sell
The 411 on auction houses and when you might want to take that rare item this route By Michael and James Fry Auction House Confidential
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LOCAL MOM & POP AUCTION HOUSES There are a dozen or more small, local auctioneers in and around Kansas City. These type of auctioneers typically do not have a dollar threshold for what they sell and they will handle whole estates from screwdrivers to sofas. A small, local auctioneer is usually the best option for rural estates, small or partial estates, or lots with individual items rang- ing in value up to several hundred dollars. They are great at getting the items sold, but if attendance or interest is low, items can sell in- expensively. As a re-seller, these local auctions can be a great place to pick up deals. LOCAL, HIGH-END AUCTION HOUSES While still local, and primarily selling items from the city in which they are based, these auction houses are much more choosy about the items they handle. They will accept notable collections or individual items of higher value and interest. While many of
competitive nature of bidding. In the heat of the moment it is so easy for buyers to overpay for an item. The second factor in an auction’s favor is that there is no limit to what an item can be bid up to. Last year an original Thomas Hart Benton painting with an auction estimate of $200,000 to 400,000 sold at Leslie Hindman Auctioneers for $1,052,500. Had it operated like an estate sale with a set starting price of $400,000 the seller would have missed out on $652,500 in value. Auction houses are continually set- ting new records for notable pieces and are a driving force for defining what the market considers an item’s value to be. Not all auction houses are created equal. For the sake of simplification we will break the world of auction houses into four categories:
ven though our crew here at Brown Button lives and breathes estate sales, we love auctions and we work with auction houses
often as both buyer and seller. We believe that auctions can be a great format for selling, and for some items, the only smart option. Auction houses are established companies that will take your items in on consignment, include them in an upcoming auction (either in person, online, or a combination) and sell them for you. The auction house keeps a negotiated percentage of the sale as their commission. In addition to charging you, auction houses will usually charge the buyer a percentage of the sale on top of the purchase price, called a buyer’s premium. It is important to know the buyer’s premium for an auction house if you are considering selling with them. A lower premium, say under 15 percent, is easier for buyers to forget about when bidding. A higher premium, such as 20 percent, has a greater chance of being mentally factored into a buyer’s bid result- ing in a lower bid. Not to say that buyer’s premiums are bad, it’s just crucial that you fully understand how the system works.
these auction houses handle full estates, they will typically only work with those that include original art, designer or antique furniture, fine jewelry, and antiques. Items valued in the high hundreds to tens of thousands
Two factors really make auctions interesting to sellers. The first is the excitement of the auction and
8 vintagekc summer 2016
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