This is how you prepare for your first auction
Auctions are not just for professionals. Even for small amounts, many objects go under the hammer. Anyone who wants to bid needs discipline and should be able to do mental arithmetic.
Some works by Joseph Beuys are available for relatively little money. For example, "Gletscher 1950", a small black and white print, has an estimated price of between 600 and 800 euros. A Cologne auction house recently had this item on offer. Such artworks, whose value is in the low hundreds, make up the majority of art auctions, according to the Art Market Report. But ceramics and jewelry are also often available at bargain prices at auctions.
This means that such auctions are not just a playground for professional dealers or museum curators. Lovers and collectors can also participate. "The trend towards auctions has increased. Direct buyers are coming to our events more and more often," observes Markus Brandis, auctioneer at Bassenge auction house and chairman of the Association of German Antiquaries. Auctions of items with low estimated prices are ideal for beginners.
However, those who want to bid for the first time should prepare a little beforehand. Basically, auctions are public events that anyone can attend. It's recommended to visit one to get a feel for the atmosphere and learn the process.
Many live auctions in the hall can also be followed online. Additionally, pure online events are becoming increasingly common, some with a special focus on more affordable objects. These auctions are trendy, even well-known houses like Grisebach, Van Ham, or Lempertz offer them. However, they lack the charm of a full hall.
Thorough preparation is essential
Anyone who wants to build a collection or speculate on appreciation should inform themselves thoroughly, advises Reiner Schorer, president of the Federal Association of German Auctioneers. "One should familiarize oneself with the artists, the current price level, and the object one wants to buy."
Before an auction, the lots, i.e., the offered objects, are presented in a catalog. All relevant information is included, such as the condition and any defects. For example, whether books or pictures have been restored or have wormholes. And most importantly: the estimated price set by the auction house.
Additionally, there is usually the opportunity to view the artworks at the auction house for some time beforehand. Bidders should definitely take advantage of this. "There, interested parties can also ask the staff about the lots. Those who do not want to travel can also have reports or photos sent to them," says Brandis.
The hammer price is final
Anyone who wants to bid at an auction house for the first time must register as a new customer and present a personal ID. In the hall, it gets exciting. The auctioneer usually starts with the limit price - which is always a bit below the estimated price. This is the lowest bid. Bidders can bid by raising their bidder number, the so-called paddle, as is known from films. Telephone and internet bidders can also usually participate in the auction. Their bids are represented in the hall by employees.
The price is rising in steady increments. Usually, it's around ten percent that the auctioneer announces. "Bidders also have the option to call in other bids. Whether the auctioneer accepts them is up to their discretion," explains Brandis. When there are no higher bids, the hammer falls, and the purchase becomes legally binding. The so-called hammer price applies. "Buyers cannot withdraw if they have buyer's remorse. They must take the object," says Brandis.
Quick Mental Math and Iron Discipline
To prevent buyer's remorse from occurring, some discipline is needed. Bidders should set a fixed budget beforehand that they should not exceed, recommends Schorer. "The atmosphere on an auction can quickly tempt you to raise your hand one more time and go for the next price step. Therefore, it's important to set a clear price limit for yourself."
To do this, you need to master quick mental math during the fast-paced auction. What many people forget in their excitement is that the hammer price is only net. Later, a fee, known as the buyer's premium, will also be added. This is usually between 25 and 35 percent, plus the 19 percent VAT if applicable. This should be considered when bidding.
"Bidders should also carefully consider beforehand which lots they want to bid on. It's best to stick to one or two, otherwise, it can quickly become too many and you'll lose track," says Schorer. Additional costs can arise if a buyer cannot take their new piece of jewelry with them directly. If it needs to be shipped, additional fees will be charged, not just for shipping, but also for insurance.
The variety of items available at auctions caters to both professionals and enthusiasts. Other beginners might find auctions of less expensive items appealing, as they offer a chance to build a collection or invest in potential appreciations.
Being well-prepared is crucial for bidders, especially first-timers. Knowing the artists, current price levels, and the desired object's condition can help avoid buyer's remorse.
