An auction house is a business that sells items at an auction. It can sell items at a live event, online, over the phone, or a combination of methods. For specialty items, like art, it is a good idea to choose a company with experts in the field. For example, if you are planning to bid on a piece of Greek sculpture, you should choose a company that specializes in antiquities.
While many of these auction houses operate without licenses, New York City is allowing them more freedom in setting their estimates. For example, it used to be illegal for an auction house to set a reserve above its low estimate. A reserve is a minimum price for which the consignor agrees to part with a work. A reserve helps the auction house capture current market conditions. It also allows the auction house to create the illusion of demand by pretending to take bids until the reserve is reached.
Auctions move quickly, so it’s important to understand how the process works before participating. Some auction houses are affiliated with lenders to make sure buyers are qualified to participate. Others may have lenders on-site at the auction. It’s important to know the rules before you attend an auction and to compare interest rates to ensure you are buying the home with the highest possible price.
Unlike a traditional store, an auction house offers full service for both the buyer and the seller. The buyer brings the item to the auction house, which sets the date, markets it, and holds public sessions. The auctioneer then sells the item at the auction, and the auction house collects a commission from the buyer and passes the remainder on to the seller. The auction house will also handle the secure storage of the item and arrange transportation if needed.
Auction houses also have many advantages over traditional methods of selling items. Besides being run by trained professionals, auction houses also have enormous marketing clout, which allows them to expose items to a larger number of buyers and thus increase the price. Furthermore, they also have security measures to ensure that all items that are auctioned are legitimate and secure.
Some auction houses specialize in selling certain kinds of art. For example, Sotheby’s and Christie’s specialize in high-end art, such as fine works of art. However, auction houses can sell all sorts of assets and commodities. Gianguan Auctions deals exclusively with Chinese and Asian art. Those who are not looking to invest in a piece of art should consider selling it through a non-major auction house.
While foreclosures may be a good deal, they can also be a money pit. If you’re patient and know what to look for in a property auction, you can get a great deal.