The words
Estimate. The saleroom’s published guide to what a lot is expected to make, as a range. It is set to attract bidders and is deliberately conservative.
Reserve. The confidential minimum the seller will accept, agreed in advance. It cannot be higher than the low estimate. If bidding does not reach it, the lot is unsold, or “bought in”.
Hammer price. The winning bid, before any charges. Every price on this site is a hammer price.
Buyer’s premium. A percentage added to the hammer price and paid by the buyer to the saleroom. Typically 20 to 30 percent, with VAT on the premium. Online bidding platforms add a further 3 to 5 percent.
Seller’s commission. A percentage deducted from the hammer price and kept by the saleroom. Typically 10 to 20 percent, with VAT, plus fixed charges.
What a seller receives
Take a lot that hammers at £1,000 in a provincial saleroom.
| Item | Amount |
|---|---|
| Hammer price | £1,000 |
| Seller’s commission at 15 percent | −£150 |
| VAT on commission | −£30 |
| Lotting, photography and insurance | −£25 |
| Received by the seller | about £795 |
The buyer, meanwhile, pays £1,000 plus a 25 percent premium plus VAT on it, so about £1,300. The gap between what the buyer pays and the seller receives is how the saleroom is paid, and it is why an item has to be worth selling before it is worth consigning.
Charges to ask about
Commission rate and whether it falls for higher-value lots. Lotting fee per lot. Photography and cataloguing. Insurance, charged as a percentage of the hammer or the estimate. Unsold or bought-in fees. Storage charges if a lot is not collected. Everything is negotiable for a good consignment and nothing is for a single ordinary lot.
Timing
A consignment is catalogued for a sale weeks or months ahead. After the sale the buyer has a period to pay, and the saleroom pays the seller after that, so expect the money four to six weeks after the hammer falls. Probate sales and house contents are the same.
Specialist or general?
A general sale takes everything and attracts local buyers and the trade. A specialist sale, of silver, of medals, of books, of stamps, attracts the collectors who pay for the best examples. An ordinary piece does as well in either. A good piece does better in the specialist sale, even at a higher commission, because the right buyers are in the room.
When auction is the wrong route
Below about £100 in hammer value the charges eat the proceeds, and a dealer’s offer or a direct sale is better. Damaged silver without a maker is a refiner’s job, as the scrap or auction guide explains. Bulk books, common stamps and worn coins sell by the box, and the box is the unit to think in. For everything else, two free opinions from salerooms, with photographs, are the way to find out.
