How Does an Art Auction Work?
An art auction, as the name suggests, is an auction in which the items that are put up for sale are artwork. An auction can be organized by non-profit organizations to raise money, but there are also some auction houses like Sotheby's or Christie's that function on a professional level. Art auctions are generally unique in the sense that the artwork put up for auction are generally artist, movement, or period specific. But the process of auctioning remains the same. In this article, we try and shed some light on this process.
The Art Auction Process
The entire process of an art auction works in different phases. For the convenience of understanding this process we have divided it into three different phases. Each of these phases is an important part of the process of an art auction, without which everything that you have worked for can fall apart. Along with these phases, it is also important to know what the different specific terminology used for art auctions are.
Acquisition
In order to have an auction, you need to have artwork that can be sold. Building a collection or the phase of acquisition is therefore very important. For professional auctioneers, this is a process wherein private collections are often offered for sale. Once a certain piece of art work is put up for auction, it is up to the auctioning team to determine the authenticity of the piece of art that they have in their possession. As an auctioneer, it is important to have thorough knowledge of the historical relevance of the piece at hand. After proper authentication of the work has been done, it is important to number the artwork. But this is all a part of the organization process that is detailed out below.
Organization
Once the authentication of the artwork is done, the pieces are stored in a safe place. They are cataloged into collections for the day of the auction. To get a catalog made, it is important to get photographs clicked of every item that is being auctioned. Catalogs are sent to collectors and interested buyers. Often the collection that the auction houses has on offer can gain a lot of publicity depending on what is being auctioned off. For some of the artwork it is important to obtain certificates confirming their authenticity. The base price of the artwork will also need to be decided on. This will depend on what the market trend is. It is important to be prepared with all the requisite packing and shipping material. There is also a need to advertise the auction and for this the use of images of the best artwork is essential.
Auction
If the auction is a live auction, then every buyer at the auction will need to be registered and given a number. If a buyer is interested in buying a certain piece that is being displayed, then he will indicate his interest by raising the number he holds. If an interested buyer is unable to attend an auction, and they still want to bid for an item, they can fill out an absentee form and send it to the auction house. Some auction houses have phone lines that prospective buyers can use to call in and place their bids. Many auction houses also ask buyers to provide them with a proof of payment ability for the item that they put a bid on. After the artwork is auctioned off, they are packed and readied for shipment after the final payment has been made. When an artwork is being auctioned, the process starts with a base price or a reserve which is the minimum price that the owner will accept. The artwork is awarded, obviously, to the highest bidder. If an artwork fails to reach the reserve price, then the art is not sold. Most auction houses charge a premium or a commission for the artwork that is being auctioned.
While auctions can happen at any point of time in the year, you will notice that most auctions take place during the summer or the holidays when more people can attend the auction. Again the preferred day for an auction is generally on the weekend. While attending an auction, knowing the functioning of an art auction can be extremely helpful.
