Auctions – one of the most exciting (and intimidating) ways to buy something you love at a fair market value. Although it can seem complex, the process is quite simple. The key to being a knowledgeable buyer is knowing how to bid, how to do your research, and understanding the role that auction houses play. After all, there are three sides to every story. And in the world of auctions, those are the buyers, the sellers, and the referees between them.

How to Sell at Auction

To sell something at auction, you need to get it valued beforehand. This valuation can either be done in person or online by sending photographs to the auction house.

It’s important to make sure the experts providing the auction valuation are qualified. Auction specialists are held to specific standards in the methods they use and the objectivity they have when making their valuations.

Once you determine who should value your item, the specialists work their magic and provide you with an estimated auction value. You may be thinking “What is this magic that they work, exactly?” Well, let’s get a little more into that, shall we?

How Auction Houses Come up with an Estimated Value

An auction valuations specialist considers several important factors before arriving at an estimate. They are incredibly detail-oriented and valuing an item includes a thorough examination and analysis of the following: the artwork provenance, subject matter, complexity, quality, size, rarity, if it has sold previously, for how much, comparable works that have sold recently, consultations with art historians/curators or specialists, and even technical analyses such as X-rays or using infra-red light to examine condition or authorship.

And that’s just to name a few! For a deeper explanation of how appraisers arrive at an estimate, check out our guide on how appraisals and valuations work.

Once you know what your item is worth, the auction house should explain their conditions of sale, commission structure, other applicable fees including insurance/ minimum values fees, and discuss what 'reserves' should be set. A reserve is the confidential price below which they will not sell the item. You should also discuss if you need to get movers to bring your property to the auction house – some auction houses will take care of it for you and other times you are responsible.

Once you’ve understood the auction house’s terms, you’ll sign a consignment contract. This should always include:

An inventory of all your items
Each item's high/low estimates
Reserves
Date the item was received
Date of the auction
When you will receive your funds

Once that’s all done, you just sit back and relax until auction day. Once the auction is complete, you receive a ‘results of sale’ statement listing the hammer price for each item sold.

Auction houses handle payment in many different ways. Here at Gray’s, we send payments by check within thirty business days (less our agreed-upon commission/fees), together with a final settlement statement listing prices and fees. We also offer direct deposit and wire transfer for a small fee.

For Buyers: Pre-Auction Day

Every auction house will publish an online catalogue for each auction a few weeks before auction day. This lets potential buyers scroll through the information about each item, they can see pictures and prices along with information about each work’s history. This allows buyers to do research of their own, an imperative part of being a smart buyer.

Do Your Due Diligence

Researching the item you’re interested in will help you understand why it is worth buying, and at what price. Apart from Google, you can also use websites such as Liveauctioneers.com to see if the item has previously sold, for how much, and/or find similar items to get a better idea of the value.

Now, if you have your eye on a high-ticket item, ask the auction house specialist for a complete condition report. Always try to examine the artwork for yourself as all auction houses should offer buyers the opportunity for in-person examinations. Most auctions hold a public exhibition preview for a few days before the auction. Just like with any other large financial purchase, it is always a good idea to ask for an expert’s opinion before you bid and buy.

And don’t be afraid to ask questions! It’s okay to ask the specialists how they arrived at the estimate or find out if there are other bidders interested in the work; questions help you make a more informed decision on how much to bid!

For Buyers: Auction Day

Bidding Methods at Online Auctions

Before auction day, you can prepare yourself for how you’d like to take part. Of course, the most exciting method is live online. There is an indescribable energy in the air – the thrill of art lovers beating out the competition.

To take part in the live auction, you must register beforehand (either on auction day or during the preview period). Then on auction day click Join Live Auction on the catalogue page.

If you don’t want to bid live onlinethere are other ways to participate. Usually auction houses offer phone bidding where you can bid live with an auction clerk on the lots you have pre-designated, or absentee bidding where you decide the highest bid you are willing to pay (maximum bid) and give it to the auctioneer before auction day. The auctioneer will execute your bid on auction day starting at the starting bid (lowest bid), and only bidding on your behalf up to your maximum if other bidders bid against you. The beauty of absentee bidding is that if no one else bids on the item, you’ll get it at the lowest possible price.

Here at Gray’s, not only do we have a website where you can register, watch the auction and bid, but we have a phone and ipad app that you can use to browse the catalogue, register to bid, watch the auction when it is live, and, most importantly, bid online!

Finally… What Are Your Items Really Worth?

By auction day, you should have an idea of how much the item of interest is worth. We don’t only mean its market value, but what it is worth to you.

As Steven P. Murphy, the CEO of Christie’s (2010 - 2014) stated, “Every piece of art is unique, and in any economic model, rarity and scarcity are key drivers of price. Picasso was prolific, but when a particular 1932 Marie Therese portrait comes up for sale, there is only that one on offer, driving the price. There will be only one person who will own it, to wake up and have their coffee in front of it and experience the emotional resonance of the master's genius. To live with a picture that moves you is what should motivate you to buy a work of art.”

So consider those wide words on auction day… and happy bidding!

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FAQs about Online Auctions

Browse our online catalogue, register to bid, and join the auction live online, or by phone. For more details, visit our buying guide.
Gray's Auctioneers offers meticulous organization, expert curation, and a vast network of buyers, ensuring maximum exposure and optimal returns.
Stay updated by visiting our website, signing up for our newsletter, or following us on social media.
Our auctions feature items from fine art and antiques to modern collectibles, all curated for quality and uniqueness.
Our experts thoroughly evaluate each piece for authenticity and condition. Detailed descriptions and photos are available in our catalogues.
Yes, we offer open preview exhibitions, and viewing appointments before each auction, allowing you to inspect items in person and ask any questions.

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How Auction Houses Work