Purchasing Fine Art from an Auction House
Added: (Mon Aug 28 2023)
Pressbox (Press Release) -
There are many fine art auction houses where one can purchase fine art. Many fine art auction houses are also fine art galleries that specialize in consigning fine art from individuals or estates. Registerig various auction houses or fine art websites will alert you when a work of fine art of interest or from a particular artist is coming up for auction. You may participate in a fine art auction in person, online, by telephone or by absentee bid. In this article, we will discuss purchasing fine art from an auction house.
• Auction House Reputation
Be sure to research the reputation of the auction house prior to purchasing any fine art. They should specialize in the fine art market and have specialists with degrees in fine art. Often they will have several specialists that focus on specific artists or media. They should also have a reputation for accurately disclosing information pertaining to fine art. Every auction house has listed a terms and conditions of sale. Be sure to thoroughly read the terms and conditions of sale prior to bidding on any artwork from a particular auction house.
• Research the Artwork
You should thoroughly research any fine art in which you are interested in purchasing from an auction house. Review the auction house website where the fine art is listed. View images and information to verify the information is accurate. Review the condition report of the artwork to determine if there are issues or damage to the artwork. If a condition report is not provided contact the auction house and request one be forwarded to you. Upon review of this information determine whether or not you are interested in bidding on the artwork. Be aware that most auction house sales are final and the artwork is sold “as is”. You will not be able to return artwork because you are dissatisfied for any reason.
• Determine Your type of bidder
When you decide that you are interested in bidding on a work of fine art from an auction house you must register with the auction house to become a bidder. A registration form is usually available on the auction house website or you can request one be forwarded to you by contacting the auction house. The registration form will ask you for contact information and how you would like to participate in the auction. The types of bidders are listed below:
o Attendee bidder – select this option if you would like to attend the live auction and bid in person during the auction when the work(s) of art in which you are interested are being offered.
o Telephone bidder – select this option if you cannot attend the auction but would like to participate live as a phone bidder when the work(s) of art in which you are interested are being offered. An auction house representative will call you at the specified phone number just prior to the work(s) of art being offered. The representative will call out the price currently bid and current price being asked. You can then decide if you want to bid. This process goes fast, usually under a minute a lot. It is a good strategy to decide how high you would like to bid prior to your artwork(s) being offered.
o Absentee bidder – select this option if you are not available the day or time of the auction. You select which work(s) of art in which you are interested along with your top bid limit or the most you are willing to spend on a particular work of art. An auction representative will then bid on your behalf at the starting price for the work of art up to but not over your top bid limit. Note that typically your top bid limit does not include the buyer’s premium.
o Internet bidder – select this option if you would like to follow the auction live on-line and bid through the auction house website or through an online auction platform. The auction house will list what online auction platforms will be available for a particular auction. Note that sometimes there are additional buyer’s premium fees associated with bidding online.
• Auction House Fees
o Buyer’s Premium: All auction houses charge a buyer’s premium. This is the amount the auction house charges you as the buyer in addition to the hammer price or price a work of art sold for the day of the auction. A buyer’s premium is a percentage of the hammer price for a particular work of art and can vary between 15% - 30% depending on the auction house. As an example if you were the winning bidder for a work of art that hammered (sold) for $1,000, the auction house with a buyer’s premium of 25% would invoice you for $1,250 for the work of art. Be sure to know the auction house’s buyer’s premium before bidding on any artwork from that auction house.
o Sales Tax: Many auction houses charge sales tax on all artwork purchased even in the event the artwork was purchased for use outside of the state in which it was purchased. Be sure to ask the auction house what is their sales tax policy prior to bidding on artwork at auction.
o Delivery of Artwork: Auction houses do not deliver work(s) of art purchased at auction. They may offer contact information for local delivery companies. Be sure to inquire about delivery charges for particular work(s) of art prior to bidding on a particular work(s) of art.
o Packing and Shipping of Artwork: Auction houses do not pay for packing and shipping of artwork out of state. They may offer packing and shipping services for a fee or provide contact information of preferred packing and shipping companies. Be sure to inquire about the packing and shipping charges for particular work(s) of art prior to bidding on a particular work(s) of art.
Tips for purchasing fine art from fine art galleries:
• Research the reputation of the auction house prior to deciding to bid on work(s) of art.
• Thoroughly review the auction house terms and conditions of sale prior to deciding to bid on work(s) of art.
• Research the work(s) of art in which you are interested by reviewing images and information online or communicating directly with the auction house. Thoroughly review the condition report for any work(s) of art in which you are interested.
• Determine how you would like to participate in the auction by selecting the bidder option that is most convenient for you.
• Thoroughly understand all of the fees of the particular auction house prior to bidding on any work(s) of art.
Conclusion:
Purchasing fine art from auction can be a fun and rewarding experience. Be sure to research the auction house as well as the work(s) of art in which you are interested. You can participate in an auction live in person, on the telephone, online or as an absentee bidder. As long as you understand that auction houses sell fine art “as is” as well as understand the fees associated with buying fine art at auction you will be satisfied if you are a successful bidder.
For more details check out https://www.larsenartauction.com/