A quick introduction to Art Auctions

Art Auctions can be intimidating for the uninitiated. Contrary to the popular misconception, most art auctions are a public affair. You can just walk into an ongoing art auction to observe one. To place a bid, you might have to register in advance, but let’s take baby steps. We will understand what are art auctions and demystify the world of art auction for you in this article.

What is an Art Auction?

When you buy and sell goods or services by opening them up for bidding, you are participating in an Auction where people bid and the sales gets made to the highest bidder. Think of it like a competition between the bidders, where the next bid had to be higher than the previous one.

What is the process of an Art Auction?

After the item in question gets finalized for a sale, the auctioneer starts at a relatively low price so that a lot of bidders come forward to start the bidding performance. The price of the item keeps on increasing, every item keeps on increasing every time a new person places the bid. When there is no new bid being placed, the most recent bid which is the highest one, takes the item home.

When and where was the first art auction held?

The first auction was help at the oldest auction house at the Stockholms Auktionsverk in Stockholm, Sweden. It was founded in 1674. Yes, the concept is centuries old.

What auction lingo should I know before stepping into an auction house?

To help you better prepare for your first auction, here is some “prep” work you could be doing. Let’s look at some art auction terms.

AUCTIONEER

The performer, the mediator, and the host of the auctions, the Auctioneer sets the tone of the art auction. He is responsible to keep a track of all the bidding including the ones bidding from the phone. Auctioneers might appear slightly serious, yet they also have the humor of first-class comedians. They are uniquely able to balance this with the coolness of a pilot.

 LOT

The Lot is what will be auctioned by the auctioneer during that evening/morning’s art auction. The work included in a specific round of bidding, either a single work or several grouped by artist or theme.

ESTIMATE

An estimate is the prediction made by the auction house, of what the lot will sell for. It is included in the pre-released online catalogues, and is presented as a range to allow for different bids. If a work is sold for above its estimate price, it’s said to have gone beyond its “high estimate” which is always a great news.

 One of the largest changes to art auctions in 21st century is introduction and expansion of online bidding in addition and sometimes replacement of physical auctions. This allowed larger auction houses like Christie's, Sotheby's, Phillips and Heritage to expand both their reach to potential bidders and the inventory of artifacts auctioned.

On the other hand, this concept made it possible for auctions mainly based online to appear and prosper, such as Invaluable, Live Auctioneers, Phi, etc. As a result of this shift, the art auction model is changing to become more inclusive of contemporary artists, and offering a broader range of the artworks to wider audiences. One of the most notable shifts associated with this change is constantly growing influence of the collectors from Asian markets.

If you are a new collection, dipping your toes into the art auction market for the first time, take a swim. Do what every great collector did when they began: buy something you love. If you are not ready to buy yet, you can always walk into a live art auction and have fun looking at the drama unfold.