Pros and Cons of Buying at Auction
Finding, stalking, doing the research, perhaps submitting a pre-auction bid, it truly can be exciting to buy artwork through auctions. In this internet age, one has access to auctions all over the world, giving rare access to pieces one might never had the option to acquire.
I’m a huge fan of buying via auction and have gotten pieces I otherwise wouldn’t have, at prices I’m extremely happy with. So why do some people look down at those of us who indulge?
Jim Lutes, Bring Me the Urethane, Dispersion, 1999
The Pros
As mentioned, at an auction you have access to art that you may not find at your local gallery. Until recently, most galleries sold on the primary market (artist is represented by a gallery and is initially sold by said gallery), while auctions were primarily the secondary market (that piece bought at the gallery comes to an auction house due to deaccessioning, from a collection, from an estate). This still holds true, for the most part, though the tweo markets are starting to mix in both galleries and auctions.
Auctions allow for Price Transparency - you can see hammer prices and databases online, so rearching what you might expect to pay is easy. No blind bidding.
Best of all, even thouhgh you may be competing with a world of internet buyers, there’s still a chance to acquire pieces for less than the retail price found at galleries. And who doesn’t love a deal?
The Cons
The hammer price is not the end to what you’ll be charged. Buyer’s fee. Tax. Perhaps VAT (Value-Added Tax), depending on where you are buying from. And don’t get me started on the cost of shipping, truly an impenetrable world in terms of guessing what you might pay. ALWAYS find out what the shipping is - you don’t want to buy a piece for a low dollar and then be charged many multiples to get it home.
With auctions, you can view the photos and read the condition report, but ultimately you are purchasing “As-Is." Works can have undisclosed or unforeseen condition issues, which is highly unlikely when buying through a gallery.
Spending WAY more than you wanted/planned for/can afford. This happens to the best of us, I’m sure.
The artist doesn’t benefit when the work is sold at auction. In extremely rare cases, sellers have given artists a share of the profits, but it’s highly unusual.
How To Do It Right:
Do your homework. Look closely at the photos, read the description and condition report and then contact the auction house with any questions. Better to know now then be disappointed later.
Calculate as well as you can what the final price will be, be sure to include the buyers fee, taxes, and shipping, as applicable. Make sure to bid low enough that you still are paying what you want once it’s all totaled in.
My suggestion is NOT to bid at a live auction, though it is really exciting. Instead, if possible, put in an early bid, with a not to exceed limit for any one lot, and walk away. Then wait for the outbid notice or an email that you’re the winner.
Be ready to lose. Most of the time, someone else will want an item more than you do. If you don’t win, congratulate yourself on not succumbng to buyer’s fever and overpaying.
Be good person. If you decide to sell a piece and you make some money on the deal, contact the artist and give them a portion of the profits. It is their work that you bought and sold successfully.