Art Auction Houses - can someone explain?

gumboots · Joined: 11 Jul 2006 Posts: 21

Dear all - got a few gripes -would be lovely to understand why so-called art experts consistently get it wrong when estimating the value of works at auction. I could understand one or two times when there are a few buyers hell bent on getting something but when it continually happens I really start to question the opinions of so called art experts. I particularly point the finger at big auction houses such as Sothebys, Deutscher Menzies, Joels and others and their gangs of well paid art experts

As an example I have followed the prices of Australian artist David Boyds works for a few years. At a recent auction works estimated at around $10K sold for 50K and 30K. This has happened consistently for the last few years for this artist and maybe its time for a long overdue review of what estimates are placed on works by David Boyd. There are other examples with the likes of John Brack, Albert Tucker, John Kelly etc all coming to mind

My second gripe is how can auction houses charge the premiums they do and get away with it. With gst, a buyer will pay as much as 20% extra to the auction house on the fall of the hammer. What seemed like a bargin at say $10000 suddenly becomes less of a bargin when the amount you actually pay is more like $12000. What if the work cost $100 000? You would pay another $20 000 in premiums.

The auction houses also hit the sellers too for premiums also up to 20% at times for works. Thus an auction house that sells a work for $10000 will often realise a profit of $4000!!

Thats 40% which is outrageous. Is there any sort of regulation in this industry? If real estate agents started getting 40% for their efforts it would be outrageous!! And with the art market running hot with many sales now exceeding $100 000 - just how much are the auction houses making?? And these experts cant even get their estimates right!! Do they deserve the premiums we are paying them. I wonder.................

Sierra · Joined: 12 Apr 2007 Posts: 584 Location: Queensland

Hi Gumboot,

...... I'm wondering too and would like to know more about this.

Confused

J I M · Joined: 05 Mar 2007 Posts: 101

Gumboots,

Auction houses get the estimates way off because they either underestimate to entice punters or they cannot predict the stupidity of some people paying way too much.

The premiums are set so high so as to give the the auctioneers a taste of the high life. Sure it's expensive to put on an auction and of course good clients get discounted premiums....even at time paying no seller's premium.

If you have money & power you can squeeze their goolies, otherwise it's a case of pay up and shut up Wink

littleeagle5 · Joined: 11 Jul 2007 Posts: 35 Location: Tweed Heads

Hi there and i totally agree with you........we have in our possession a very large Donald Friend water colour in super condition.......one house estimated the value at tops 5 grand whilst another very well known one has put the estimate as high as 20 grand.......like you said how can two so called experts have such a huge variance in price.......has to make one really wonder........such is life i guess,

Have a great evening,

Jen

gumboots · Joined: 11 Jul 2006 Posts: 21

Hi Jen - I sympathise with your position re your Donald Friend. Go with the auction house that offers the highest reserve and try and negotiate a low sellers premium. Dont let the experts undervalue your work!!

Im still smiting from selling a work recently and loosing several thousand which ended up in the experts (and I use the term very loosely) pockets

littleeagle5 · Joined: 11 Jul 2007 Posts: 35 Location: Tweed Heads

boa · Joined: 26 Sep 2008 Posts: 14

Hi - if you are looking to sell artworks under $5000, you should try ebay! They charge far less than the auction houses and for well-known artists the price you get is often better.