Buying & Selling Antiques
Buying at Auction
Auctions are one of the most exciting ways in which to buy antiques and collectables. You might even pick up a bargain, but beware; you might catch the collecting bug! Many first-timers feel intimidated when attending an auction, but there's no need to be. Our advice is first to familiarise yourself with all the procedures before you decide to take the plunge and make a bid. Attend a couple of sales at your local auction house simply as an observer and note how they proceed and how the auctioneer operates. Salerooms are a great place to learn about antiques, and you'll meet some fascinating characters who frequent the place. Make friends with them and they'll teach you a great deal. You'll find many salerooms near to where you live. In addition to auctions of fine art and antiques, most of them include general sales in their calendars at which you can find anything from bicycles, furniture to bric-a-brac.
Viewing the Sale
Most auction houses provide a catalogue prior to the sale listing all the items for sale. They are obtained either directly from the auction house or downloaded from a web site such as www.ukauctioneers.com. The catalogue may be a typed sheet which is given away free, or a glossy illustrated brochure costing several pounds, but all have the same things in common. They list all the items (lots) in the sale in a strict numbered order, which correspond to the numbers attached to each lot. Many catalogues also print estimates - a price range showing what the auctioneer expects each lot will make at the auction. These estimates are intended only as a guide. Sometimes a lot sells well above the printed estimates, depending how keen bidders are to acquire it. Most lots have a reserve price. This is the minimum price at which the owner is prepared to sell his property. Reserves are confidential between the seller and the auctioneer. They are agreed before the sale and are never disclosed to buyers. Objects are occasionally offered "without reserve", indicating that they are for sale at any price, however low that might be. All catalogues should include the saleroom's Conditions of Sale. You should read these carefully as they differ from company to company. In addition to disclosing the fees charged by the auctioneer to both the buyer (buyer's premium) and the seller (vendor's commission), the Conditions of Sale also indicate your rights as a user of the saleroom's services. The rate of buyer's premium varies from saleroom to saleroom but is usually between 8% and 20%. Value Added Tax at the rate of 15% is charged on the premium, and in some cases, also on the selling price (hammer price) but in such instances this is clearly marked in the catalogue. Remember to take into account these additional charges when you are deciding what your maximum bid on a lot should be. Payment options should also be checked in the Conditions of Business. Not all salerooms accept payment by credit card and some impose a charge for providing the facility. Information is also given on how much time buyers are allowed to pay for and collect their purchases and what storage charges are incurred if purchases are not collected promptly. Most auction houses either provide or can recommend a transport service, which is particularly useful if you have purchased large items. However, delivery incurs extra charges, which should be agreed beforehand with the carrier. All lots are on view before a sale and viewing can vary from one day to two weeks. If you are intending to buy at a sale, it is important that you attend the view and inspect carefully anything you hope to buy. Some sale catalogues list damage and faults but many others do not. In either case it is important to satisfy yourself as to the suitability of any lot you intend to buy. Don't leave viewing to the last moment, therefore. Lots are often moved immediately prior to the sale and you may miss your chance to inspect them. Be sure to mark your catalogue with the maximum amount you decide you want to pay for any lot you're interested in ... and resolve to stick to the prices you set!
Bidding at Auction
There are different ways you can bid at auction: In person If you wish to attend a sale and bid in person, you will need to register first. Some salerooms get very busy just before a sale, so allow yourself sufficient time to complete the process. Most salerooms will ask for your name, address, contact numbers and some other form of identification such as a driving license in order for you to receive a bidding paddle, usually a numbered card. You can then use this to bid during the sale, and if successful, the auctioneer will ask for your paddle number. In some salerooms you will need to fill in a form only when you have bought something. Arrive early if you want a seat, but remember that lots are usually sold at a pace of approximately 100 lots an hour, so it may take a while to get to your lot. The sale always operates in lot order. When your lot comes up, the auctioneer will invite bids and call them out in regular increments as buyers respond. These depend on the value of the piece being offered and can be increases of £5, £10, £20, £50, £100 or more at a time. Listen to other lots being sold and you'll soon get the hang of the bidding increments. If you wish to join in, bid clearly by raising your paddle. Be forthright. If necessary, wave your paddle or catalogue to attract the auctioneer's attention. If he still fails to see you, speak your bid by saying the figure, or say "here" or "bidding". This is unlikely to be necessary as the auctioneer is trained to spot all bids. Once he has taken your first bid, he will return to you as other bids are placed, by which time a nod of the head or raising your paddle will suffice. Remember the auctioneer can take bids from only two people at one time, so be patient. And if the bidding goes higher than you intended to pay, indicate that you have dropped out by a clear shake of the head. The bidding stops when all other bidders but one have dropped out. The final bidder is the successful buyer and this is indicated by the auctioneer who knocks down his hammer on the rostrum and announces the buyer's paddle number and hammer price. The auctioneer or his clerk then record these details and the bidding moves on to the next lot. Finally, it's easy to get carried away, so remember your maximum bid and stick to it! And don't worry that a careless movement of your hand or an ill-timed sneeze will land you with a valuable piece you can't afford. It won't!
Leave a Commission or Absentee Bid
If you cannot attend the sale in person, or you'd rather not bid yourself, you can leave a "commission" or "absentee bid". This will also ensure that you don't go over your maximum bid! You can do this either at the saleroom, or on-line at www.ukauctioneers.com. Simply complete a bidding form with your details and the lot(s) you want to bid on, putting the maximum amount you are prepared to pay (hammer price). Don't forget the buyer's commission is then added on top of the hammer price, so bear this in mind when working out your maximum total price. The auctioneer will then bid on your behalf and will try to secure the lot(s) for you at the lowest price possible as other bidding permits. There is no charge for this service.
Bidding by telephone
Many auctioneers now offer absent buyers the opportunity to participate in a sale by telephone. By prior arrangement with the saleroom, a member of the auction staff will call you a few lots before the one you are interested in and bid for you while you listen. This alleviates the need to leave a commission bid and allows you to respond to other bids as they are relayed to you as the sale proceeds. However, because telephone lines are limited, telephone bidding may be reserved for the more expensive lots in an auction.
Selling at Auction
If you have a desirable item you would like to sell, an auction sale is worth considering. Competitive bidding from dealers and collectors in an auction in which the piece is seen by a wider audience can result in a better price than selling through other sources, especially if it is sold in a specialist sale. However, you may have to wait some weeks for a suitable sale and there will be a further delay before you receive the proceeds, minus the auctioneer's charges for his services (vendor's commission). If you are selling a large item or many items, you can ask an auction house valuer for an appraisal at your home. This is usually a free service. Otherwise, you should take your items to the auction house to be valued. Some auctioneers put aside a specific time each week or month to conduct valuation days but be sure to make an appointment to ensure the valuer is available. As the valuer examines your property, he will ask you for any information you may have about it, such as how it came into your possession and how long you have owned it. Was it owned by a celebrity or did it come from a well known house or family? All this helps identify the history of the piece, known as its "provenance", which can help in its identification and boost its value. Using his specialist knowledge, the valuer will explain what he knows about your property. He'll tell you where, when and by whom it was made, as well as what he expects it could fetch at auction. Estimates are based on the condition, rarity and history of an object, as well as careful consideration of prices realised for similar objects. The valuer will also recommend what "reserve" price should be set in an auction. The reserve is the confidential lowest price at which you are prepared to sell and this is agreed between you and the valuer. The auction house sells your property on your behalf. For this service you will be charged a seller's commission (usually between 10 and 20%, depending on the auction house), which is deducted from the selling (hammer) price. Value Added Tax at the rate of 15% is charged on the commission and insurance of your property while it is in the auctioneer's possession. If your item is photographed and illustrated in the catalogue, you may be charged a fee to cover the costs. If the piece does not reach its reserve in the auction, it will not be sold, and, depending on the auction house, you may incur an unsold fee. In such a case, you can either instruct the auctioneer to offer the piece in a future sale, but perhaps at a lower reserve, or keep it until its value rises.