Thinking of selling your fine art, antiques, collectibles, or jewelry at auction? Before you dive in, it’s essential to understand precisely how the process works—the costs, the risks, and the outcomes you might face.
In our new video, “How Selling at an Auction Works,” Adam from Syl-Lee Antiques walks through the real math of what happens when you consign an item to an auction house.
The Auction Process: An Example
Imagine you own a painting with an auction estimate of $8,000–$12,000. You set a reserve price of $5,000 (the minimum you’ll accept).
Scenario 1: The Painting Sells
- Hammer price: $10,000
- Auction house commission (20%): –$2,000
- Seller receives: $8,000
- Listing fees (photo, insurance, internet): –$600
- Net proceeds: $7,400
Scenario 2: The Painting Does Not Sell
- You still owe the $600 in seller fees.
- The painting now carries the stigma of being a “passed lot.” Collectors remember unsold pieces, which can make it challenging to relist soon. In some cases, it may take a decade before buyers forget. Even then, there’s no guarantee of a higher price.
The Bottom Line
Auctions can be a powerful tool, but they are not risk-free:
- The auction house earns money whether your item sells or not.
- Unsold items can lose value or marketability.
- Commission and listing fees reduce your net proceeds.
That’s why it’s often smart to consult with an impartial expert—someone who doesn’t work for the auction house—before making a decision.
