Buying Art at Auction: A Guide
Christie's, Paris
Art auctions offer an exciting and competitive way to acquire unique pieces for collectors and enthusiasts alike. Based on reports from industry experts, the process of buying art at auction involves several critical stages, from thorough research and preparation to the final collection of purchased works. This guide explores the key steps involved in navigating art auctions, providing essential insights for both novice and experienced buyers looking to participate in this dynamic marketplace.
Sotheby's, New York
Research and Preparation
Thorough research and preparation are essential first steps for anyone looking to participate in an art auction. Potential buyers should:
Review the auction catalogue, which provides detailed descriptions of artworks, including provenance, condition, and estimated value
Familiarise themselves with auction terminology such as "reserve price" and "buyer's premium"
Set a realistic budget, considering additional costs beyond the hammer price
Attend preview events to inspect artworks closely and assess their condition in person
Consult with experts available at preview events to gain additional insights about specific pieces
Understanding the art market and identifying pieces of interest beforehand helps in making informed decisions during the fast-paced auction environment.
Christie's, 8 King Street // Evening Sale
Registration and Bidding
To participate in an art auction, bidders must register with the auction house, providing personal information and proof of identity. This process can often be completed online, by phone, or in person, with high-value auctions potentially requiring additional financial verification. Once registered, bidders receive a paddle number for placing bids during the auction. Bidding can be done in several ways:
In person by raising a paddle
Through absentee bids submitted in advance
Via telephone with an auction house representative
Online through real-time bidding platforms
It's crucial to have a clear bidding strategy and understand the auctioneer's signals and pace, which can vary between auction houses. Bidders should also be prepared for the competitive atmosphere, as the excitement of the moment can sometimes lead to overspending.
Christie's Telephone Bidding
Winning and Costs
When the hammer falls, the highest bidder secures the artwork at the "hammer price". However, this is not the final cost. Buyers must also pay a buyer's premium, typically a percentage of the hammer price, which can range from 10% to 30% depending on the auction house.
Additional costs may include VAT, artist's resale rights, and import/export taxes. Winning bidders are required to settle their accounts promptly, typically within a few days of the auction. It's crucial to factor in these extra costs, as well as the costs involved in insuring and transporting your newly-acquired items, when setting a budget to avoid any financial surprises post-auction.
Sotheby's Art Handler
Collection and Logistics
After successfully winning a bid, buyers are responsible for arranging the transportation and insurance of their purchased artworks. Key considerations include:
Auction houses may offer assistance with shipping and handling, but costs are typically borne by the buyer.
Ensuring all logistical arrangements comply with legal requirements, such as export restrictions for certain artworks.
Proper planning to ensure a smooth transition from the auction house to the buyer's collection.
Engaging professional art handlers and shippers to ensure the safe transport of valuable pieces.
Timely and efficient management of collection and logistics is essential for protecting the artwork and completing the acquisition process.
Sotheby's, New York
Auction Pitfalls to Avoid
While art auctions can be exhilarating, they come with potential risks that buyers should be aware of:
(1) Overpaying: One common pitfall is overpaying due to the competitive atmosphere, with buyers often getting caught up in the excitement and bidding beyond their predetermined budget.
(2) Authenticity: Auction houses typically do not guarantee the authenticity of artworks, leaving the responsibility of verification to the buyer. This can be particularly problematic with high-value pieces or works by lesser-known artists.
(3) Condition: Auction houses typically provide condition reports as a courtesy rather than as a legally-binding description of the artwork in questions. Potential buyers are encouraged to view the work in person and make their own determination of condition.
(4) Provenance: there is a risk of acquiring works with questionable provenance or legal issues, such as looted artworks or pieces subject to export restrictions.