How To Sell Art At Auction

Auction houses are a viable option to sell your fine art collection if the conditions are right. Qualified appraisers and advisors can help determine if the auction market is the right choice to sell your fine art. Not all auction houses are created equal or can sell collections at a fair market value, especially if they do not have the marketing capabilities or buyers and messaging to reach those buyers. Researching the market before you commit to working with an auction house and knowing the process and your rights is essential. The actual completed sales are typically public knowledge, but some details still need to be discovered, such as the commission and fee structure charged to the client and how long they have to market the work. 

Not all art is created equal. Claude Monet and Pablo Picasso are two of the most well-known and collectible artists of all time, but not all of their works will garner the high prices we have come to know from the blockbuster sales that are now well known. An original Monet painting could sell for over $600,000,000, but a lesser quality, different medium, or scene painting with less than solid provenance could sell for $600,000. A smaller pastel with darker colors will sell for far less than that. There is a wide variation in values within the same artist. An experienced Art Appraiser will help you understand that difference and what your art is worth, establish a fair market price, and help you navigate the often confusing art market while negotiating the terms and conditions of the sale to optimize your profits and mitigate potential pitfalls or risks.

The art business is a constantly evolving market with the artists that sell the highest changing as styles, markets, galleries, museums, collectors, and times change. Often, what was collectible 20 years ago differs from what is collectible or high-value today. Appraisers must use the most recent data, as the best indicator of the current market, when conducting appraisals. As an Appraiser, I look at historical data and value ranges but use the most current data (preferably within the past three years) to determine current market values. Sometimes I research 20 years of data because a client paid $35,000 for a painting 20 years ago and expected it to go up in value, and the current sales prices are pointing to a value of $10,000, so I have to explain that difference to my clients and often show them the data.

When you are ready to sell your art through an auction house, there are some critical steps to consider. The first thing you must do when trying to sell any fine art is to determine what you have:

1. Artist Name - this is the most crucial and least understood aspect to determine. Is it the same Albert Bierstadt (Germany/US 1830 - 1902) or a painting with a Bierstadt signature? Is it a copy, a forgery, or a fake?

2. Medium - Is your fine art an original painting, oil or acrylic on canvas or board, a watercolor, or a print? If it is a print, is it an original print with a hand signature, a reproduction print done after the artist's lifetime, or in the case of contemporary artists, was it mass produced in an unlimited quantity? These all affect the value of the art.

3. Condition - what is the condition of your art? The condition can significantly affect the value of the art, especially if there are tears or holes central to the composition. 

4. Dimensions - what are the dimensions of your art - framed/unframed? Sometimes smaller works are collectible, but most times, larger works are far rarer and more valuable in fine art. Sometimes, too large works are not as valuable as their smaller works. Only some people have 20 ft ceilings and can hang or keep a 12 ft painting. 

5. Subject/Genre - I have appraised many of Andy Warhol's original screenprints. They range in price considerably even at the same size and quality due to the subject matter. Certain subjects are just more collectible with clients. His image of Annie Oakley is far less valuable than a Marilyn Monroe image.

6. Provenance - this is the history of ownership of the art. Provenance is essential for high-value items that are widely reproduced/forged. Do you have any old receipts, appraisals, or documentation for the works? If not, that is not a deal breaker, as we can still work through the process of having most works authenticated by the accepted experts or estates of the artists. 

Steps To Sell Fine Art At Auction:

1. Research options: Identify reputable auction houses specializing in the type of art you have. Part of my appraisal process is identifying the top prices at auction to help my clients make the best choice when working with an auction house. Every auction house has a specialty or multiple specialties, and they have a roster of buyers looking for certain types of works, and they can sell certain artists for higher values than their competitors.

2. Contact the chosen auction houses to inquire about their submission process, terms, and conditions. I like to get estimates from three different auction houses when I am helping my clients sell their art as they are often three different values with three different terms and conditions.

3. Submit Information: Provide details about the artwork, provenance, and relevant documentation. Most auctions require images, dimensions, and provenance records. Auction houses can be responsible for guaranteeing the authenticity of what they sell, so they need to make sure the work they receive and sell is authentic. 

4. Auction Estimate: The auction house will assess the artwork's value and will suggest a pre-sale estimate.

5. Terms and conditions: Review and agree on terms, including seller's commission and any fees. Most auction houses have a standard commission, but some fees, commissions and conditions are negotiable depending on the value of the art and what else you are selling. If you have a very valuable work the auction house desires or are selling a large collection of desirable works, Art you have more leverage to negotiate. Appraisers and Advisors have experience understanding and helping to negotiate these terms and conditions and can ultimately save you thousands of dollars during the process. It is up to you to ensure you understand all terms and conditions before proceeding. There is a difference between an auction estimate and a reserve price. Some auction houses will set a reserve price at 25% of the low auction estimate, meaning that a piece could sell for 25% less than the low estimate. Some auctions will suggest no reserve, and it is essential to understand all of the terms and conditions and fee structure. 

6. Authentication: Sometimes, you need to authenticate the work before you can sell it, although this is only necessary sometimes, mostly when the values are higher and the works are known to have fakes circulating in the market. Art experts estimate that 1/2 of all the art in the market is fake, and auctions take a very cautious stance. It is assumed to be fake if it does not have a clear and direct provenance. Some auction houses require authentication from experts. A reputable auction house will have resources and art world contacts who can help with this process if you decide to sell with them. 

7. Catalogue and photograph the art: The auction house will catalog and photograph your artwork, creating a detailed listing for potential buyers. Not all art will be included in a physical catalogue, so these are questions you need to ask.

8. Marketing: Auction houses promote upcoming sales through various channels to attract potential buyers. National auction houses have worldwide reach, and buyers can come from anywhere in the world. Most reputable auction houses also have email lists of past and potential buyers and can often pre-sell the work and garner interest before the sale. Everyone's best interest is to attract the most viewers and potential bidders. It only takes two people to create a bidding war and have the work reach higher values. Sometimes, works will sell for much higher than original estimates due to conservative estimate strategies or a bidding frenzy at the end.

9. Auction Day: Your artwork will be included in a specific auction, and potential buyers will bid on it. Auctions can be a fun process and a disappointment to sellers who do not achieve the amounts they hope for. There is always a risk at auction, but the potential for higher rewards is more significant than in a fixed-price sale. You have to determine the amount of risk tolerance you have; it is often an exciting process to watch and be involved in. 

10. Sale and Settlement: If your artwork sells, the auction house will handle the transaction, deducting fees and providing you with the proceeds. Sellers need to understand that this process can take 30 - 60 days to receive a check after the sale. You must know if there are fees for works being Bought In, meaning they fail to sell. Some auction houses charge a fee for this unfortunate occurrence. 

We have compiled a resource book all about selling art at auction, including definitions and terms used in the auction process as well as a list of the top 11 auction houses specializing in modern and contemporary art with a link to their website.

In conclusion, auctions are an exciting and potentially lucrative way to sell your art, but they are often not the best option depending on what you have, the market and conditions. It is important to educate yourself on the process and to get comfortable before you commit to working with an auction house. Art Appraisers and Advisors are valuable resources in this process and can ultimately save you a lot of time and money if you have higher value art. To learn more about our services and how we help our clients at Art Appraisal Resources, please contact us for a complimentary consultation.