Don't get screwed when you consign your valuables to an auction house. No matter who you are or what you own, the odds are that you have accumulated some things of value through out your life. If you're going to sell any of these items at auction, here is what you need to know.
Consigning to Auction Houses
Live Auctions
One of the best and quickest ways to get very good money for your items is via live auctions, so we'll begin with that. A relationship with a good auction house is a great thing to have.
If you have items that are right for a live auction, there is no better place to sell them.
What determines which are the right items is up to you, but before consigning anything to an auction, ask yourself if there's a bit of a gambler in you. If the answer is absolutely not, the auction method may not be best for you.
That said, you should still read this chapter thoroughly as auctions are the most important and established way of selling antiques and collectibles. It will pay to know the ins an outs of the auction process, no matter how you plan to sell your valuables, because it will give you a better understanding of the antiques market.
Here's what to do if you do want to sell at auction and need to get paid quick.
Do your homework. To some degree you should know what you have and which auction house it should go to. If you're not sure exactly what your items are, it would pay to do a bit of research or you'll just have to do your best describing what you have to someone on the phone.
If you need more help on how to find an auctioneer in your area, there are resources posted at the end of this chapter.
Make sure to call ahead to find out commission fees and what types of things the auction is running on the date you want to sell your items. Expect to pay a 20 -30% commission fee on sold lots.
Most auction houses pay within 14 business days although some can be coaxed into paying faster. Some auction houses will even advance you money against your items if you have antiques of high enough quality.
If at all possible try to talk to the auctioneer directly on the phone, an auction is one of those businesses of which the hired help cannot often answer detailed questions.
The first thing the auctioneer will want to know is what you have. After you provide this information ask what they have featured in their next available sale. You don't want to run high end antiques if it's a closeout auction, and vice versa.
Going "off topic" in lot type can be done at an auction, but it's not the optimal choice, do that only if you have to.
If the auctioneer has space in his auction, he will likely take any type of lot on consignment, except junk, since he works on commission it cannot be a loss to him, but it can be to you. Remember the gambling I mentioned up front, this is part of it. Try to have the right things in the right auction whenever possible.
Don't expect an auctioneer to be very willing to place "reserves" on your items, they usually never work and most often result in unsold lots. There are rare exceptions, but trust me they are far and few between.
The better an item is the more likely it will sell well and the less need for a reserve to be placed on it. If you do insist on a reserve on some of your items, it's not uncommon for the auctioneer to charge a handling fee for unsold lots that you demanded a reserve be place on.
It's also likely that the auctioneer will just outright refuse those lots, reserves are very unpopular with auction crowds and thus with auctioneers.
Keep in mind that you're likely to save on commission fees if you're able to bring the items to the auction house yourself.
It would be best to ask about this after you get the commission rate quote to make sure you get a break if there's one to be had. Another good reason for bringing in your own items, is because you can get a first -hand view of the operation.
Once you've decided on an auction house and agreed to its terms, the next step will be the intake process.
Whether the items are picked up at your home, or you bring them to the auction house, the principles and goals of the intake process are the same. Simply stated, it involves a contract agreement and a somewhat detailed and accurate inventory sheet if you're consigning many items, but a very detailed and accurate accounting if you're only consigning a few items.
The intake process is the one place where you don't want to make a mistake in consigning to an auction house.
You'll need to not only make sure that you get an inventory sheet, but you really need to know what that sheet should include. Your signature should be required. This is not one of those times where you don't read the entire agreement as we tend to do with other contracts. You need to know what that auctioneer or manager has entered here. This is one of the most important steps in consigning valuables to an auction, and the one most likely to cause problems if not done correctly.
Understanding the intake process and the inventory sheet.
An auction house is generally a very busy place, when they get large lots of items they will tend to inventory things in groups such as:
5 boxes of China, collection of old photos, bottle collection etc. Let's say that in one of the boxes of china is a Meissen figurine and 10 Flow Blue plates.
These are pretty important, high value pieces. Your job is to make sure that those items get entered on the sheet individually so there can be an accurate accounting of the important things at the end of the auction.
By the same token, after the auction is over, your final receipts will likely be somewhat different from the intake sheet. IE: On the intake sheet you may have had 5 boxes of china, and on the final tally for those boxes of china, they may be indicated as "tray lot #1" "tray lot #2" and so on.
So know that it's impossible for any auction house to do a spot-on inventory of every piece in large lots, but expect to have the most valuable things accounted for.
You should expect a coherent enough system to show that you've been paid for all of your items. One more thing, if you know the terminology of an important item, IE: you have "Baccarat crystal chandelier" and the auctioneer enters it as a "hanging lamp" ask to have it properly noted. ( Obviously a red flag should go up if your auctioneer can't recognize high-quality items.)
I can't emphasize enough how much a proper inventory sheet can save you trouble later. I can almost guarantee that a sloppy inventory sheet will result in you not getting paid for part of your consignment!
Ask questions
Ask as many questions as you have, especially about how your items will be grouped together. If an auctioneer says that all of your valuable antique paperweights will be sold as a lot, this could be a sign of trouble.
Why would he group valuable items that should be sold individually? By the same token, if he is promising to sell your collection of inexpensive Avon bottles individually, maybe this is not as high a quality of an auction house as you thought.
By asking questions you demonstrate some knowledge of the process, which should help to assure your lots get the attention they deserve.
Believe me, an auctioneer can handle a few questions, he is responsible for selling 200-400 lots a night to a crowd of people, that's a lot of pressure. He should be able to handle a few questions from a concerned consignor.
Don't expect a lot of patience if your lot is of low quality. The better the items, the more attention they get, the more time you get, that's just the nature of the business.
Prime time
One of the most important things for the successful sale of a valuable item at an auction is that it go up on the block at a good time. If your collection of Roseville vases goes up at the end of the auction, you'll lose a lot of money.
Prime time is the first third of the auction, so ask when you can expect some of better items to hit the block.
Here are some auction stats that will help you understand the value of prime time on the auction block.
1. In the first third of the auction, the average auction house brings in 70% of the total dollar amount.
2. In the next third, the average house will bring in another 20% of what's left in dollar amount.
3. The last third of the auction will bring in 10% of the total dollar amount. Which third do you want your best items in? Right.
A good auction will coordinate lots so that each consignor's valuable items gets a fair rotation, but don't expect any particular order or treatment on lower end lots.
It's always a good idea to mention that you plan to attend the auction or that a friend may attend. You don't want to make it sound like your checking up on them, (even though you are), rather say something like, "Oh you have some interesting things in the sale, I think I'll stop in". That simple statement will get you about 10% more money for your lots in most auction houses.
More due diligence. If you're consigning very valuable items and you're not familiar with the auction house, check with the state licensing board to see if that auctioneer has any claims against his license or bond (almost every state requires an auctioneer to be licensed and bonded. Connecticut and New York do not as of the time of writing this book).
Going the extra mile
There is a lot you can do to help your consignment lot along before it reaches the auction block. If you have a website or a blog you can post the details there and in emails. You can let friends and relatives know and ask them to mention it online or to others they know that might have an interest in the types of items you've consigned. You can visit shops and stores that sell the kinds of items you have and let them know of your items in the upcoming auction.
If you're thinking of consigning medium range items on an ongoing basis to a small local auction house, it's likely you may be able to help "run" your own lots if this interests you.
Running your own lots means that you are the person that takes the item up to the auction block and holds it up in front of the crowd as the auctioneer sells it.
I recommend doing this if it's a good fit for you. There are a lot of bonuses in having some amount of control in the running of your lots.
Believe it or not, some local country auctions will allow or even encourage the lot owners to help out with this process. It's a great way to learn the nuts and bolts of the business and will make your consignments more profitable at the same time.
Some of these auction houses even pay consignors the same night right after the auction, especially if they are loyal consignors or dealers that rely on turnaround cash!
One last thing. Never bid on your own lots. If the auctioneer finds out, they may stop the sale of your lots as it's against the law. No smart auctioneer wants to risk the loss of license or reputation for the sake of a few dollars.
If you've done your homework and you have what you think you have, your lots will bring fair market value and will likely do better at a live auction than anywhere else, at least if your looking for quick cash.
Good luck and try to attend the auction your consigning to if at all possible.
Summary List:
* Research auction houses and their upcoming auctions.
* Talk with auctioneer, find out auction and payment policy.
* After settling on an auction house review the contract.
* Carefully review the intake process.
* Let the auctioneer know you plan to attend the auction or have an agent attend.
* Go the extra mile by helping to promote your lots via whatever methods possible.
What to expect when it's over:
That all of your items will be sold.
15-20% of your items will sell high if you consign multiple lots.
15-20% of your items will sell low if you consign multiple lots.
The rest will sell right in the middle, on average. Now where else can you sell 100% of what you have this fast?
You'll be paid promptly and the check will be good.
You'll have learned a valuable process which may come in very useful in the future.
