Auctions in various forms have existed for millennia. Since the seventeenth century, sales via bidding – as we today associate with the word ‘auction’ – have developed and become increasingly common. Over time, both language and processes have developed and changed in the auction world. Here is a list of some of the things that are important to think about before you place your bid.
Read on
Auction houses' websites contain information about the objects, their condition, origin and other information that may be of interest. One example is designer furniture, as several classics have been produced over a long period of time – keep an eye out for the production date and place of manufacture if you want to be sure that you are buying an original, and not a new production. Damages or defects are also usually described in the catalogues. Read on and you will know what you are buying.
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If the condition isn’t described, you should contact the auction house to be sure, and in most cases they can send detailed pictures so that you get a better idea of the item you want to bid on.
Double check the measurements
Measurements are a common mistake when finding something online. Always double-check the dimensions and try to imagine the object in its intended place. It’s happened several times that paintings have been much smaller than expected, or that buyers have been met by a set of highchairs instead of ordinary ones.
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The difference between a starting price and a starting bid
The starting (or asking) price is based on the valuation of the item made prior to the auction. However, the starting price is no guarantee of the final price – the final amount can end up far above or far below. Instead, look at the starting price as a benchmark on the auction house's perception of value, but let your own wallet determine what you are willing to place as a maximum bid.
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There is also something called a starting bid. This is often a low bid that auction houses use to encourage bidding. The starting bid can be set very low, and be less than – or in some cases equivalent to – the reserve price.
What’s a reserve price?
The auction house and the seller agree on a security or ‘reserve’ price before the auction starts. This is a set, minimum price which is accepted by both parties but is not visible to the outside world. The reserve price is often below the asking price, but sometimes no reserve price is set at all. If the bidding doesn’t reach the reserve price, the item becomes unsold and goes back to the seller, or else negotiations may be made between the buyer, seller and auction house after the auction.
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Determine your maximum bid
It’s not uncommon for bidding to take off for only a few minutes before the gavel falls down and the item is sold. But if you don’t want to be a bundle of nerves in the auction room, you don’t have to be present at this final stage – you can leave a maximum bid beforehand.
Most auction houses offer a service that allows you to decide on your highest bid before the auction, and then the auction house will bid on your behalf until they reach your ceiling price – provided there’s a counter-party bidding against you. This way, you avoid the risk of missing an auction and the risk of bidding beyond your means.
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Even if you don’t use this service, and instead sit down and place your bid when the gavel is coming down, it’s important that you’ve determined what you’re happy to pay. It's easy to get swept up in the bidding. Also keep in mind that in almost all cases, some type of commission or fees will be added to the hammered amount. Information about this can be found from the auction house: don’t forget to read their terms and conditions before bidding!
Don’t miss any items!
In addition to placing a maximum bid before the auction, at Barnebys, you can monitor items that are of interest. We will send an email when an auction is coming to an end so that you can monitor your bidding. Surveillance can also be a good idea if you’re looking for something special and want to be informed about when new items relating to your search criteria go on sale.
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Registration, payment and collection
To be able to place a bid, most auction houses require that you register or create an account with them in advance. Keep in mind that in these instances, an account with Barnebys is not enough. Sometimes, a verification of your account with the actual auction houses is required, so make sure you do this a couple of days before the auction starts.
When you’ve won an item, each auction house has different terms for payment and collection. For several of the UK auction houses, seven working days apply for payment and collection or agreement on transport. Check what’s on the auction house's website and also in your confirmation when you bought the item. Some auction houses also charge a fee for storing your item if you don’t collect it within the allocated time frame.