Why can the estimate of an art object for an auction be disappointing?

When owners of art or collectible objects prepare to sell them at auction, they often hope to get a good price. However, it often happens that the estimates provided by experts or auctioneers are much lower than their expectations. This article explains why these estimates can seem disappointing, how experts evaluate an object, and why the prices observed online or on professional sites are not representative of the amount you could actually obtain by selling an object at auction.

1. Experts' evaluation criteria

The estimation of an object by an auctioneer is based on rigorous and objective criteria that reflect the reality of the secondary market. Here are the main aspects they take into account:

• Authenticity and provenance

• Condition of the object

• Rarity and current demand

• Comparison with similar sales

2. Why estimates are often lower than primary sale prices

In the primary market, that is, when an object is first put up for sale, prices can be inflated by the notoriety of the artist, the gallery that represents them, or specific elements related to the object. These prices include margins intended to cover promotion and production costs. As a result, works or objects sold in this context often have higher prices.

Auctions, on the other hand, are part of the secondary market, where objects are resold by private owners. In this market, supply and demand play a central role, and buyers are often not prepared to pay prices as high as those charged at the first sale, especially if the object has already circulated or if it is not a unique piece.

3. The differences between online and auction prices

Many owners compare auctioneers' estimates to the prices they see on online sales sites, whether auction platforms or direct sales. However, these online prices do not always reflect the reality of the market.

Listed price vs. actual sale price: The prices visible online are often prices asked by sellers, which can be very optimistic. These amounts are not necessarily the prices at which the item will actually be sold. It is not uncommon for items to remain unsold at these prices or to be negotiated at much lower values.

Presence of professionals on the online market: Many professionals buy items at auctions or on specialized sites, then resell them at much higher prices. It is common for these professionals to buy an item at a relatively low price at auction, then offer it for sale two to three times, or even five times more expensive on their own site or in their stores. The prices you see online on professional sites are therefore resale prices, including the margin that these professionals allow themselves to cover their costs and make a profit.

So, if you see an item similar to yours sold for a very high sum on an online sales site, it is likely that this is the price offered by a professional, and not the price at which an individual could hope to sell directly. This explains why your item will probably not be estimated at the same amount in an auction.

4. Commissions and fees to take into account

Auctions involve commissions that are often underestimated or ignored by novice sellers.

Before COVID, commissions were shared between buyer and seller. Since COVID, commissions are borne by the buyer and represent between 25 and 30% of the final sale price

This commission includes the services of the auctioneer, advertising the item and the costs of organizing the sale.

These fees are paid in addition to the sale price, which can slow down some auctions, as buyers calculate the total amount they will have to pay. This can influence the final price reached during the sale and thus explain why it may be lower than initial expectations.

On online sales sites, commissions can be lower or even non-existent for sellers, but this does not guarantee a quick sale or at a price as high as the one displayed.

5. The role of professionals in the resale of art objects

Many professionals buy objects at auction with the aim of reselling them at a much higher price. Their expertise allows them to identify undervalued objects that they can restore, reposition on the market, or simply offer to a more exclusive clientele, which allows them to make a significant profit.

Buying at a low price: At an auction, these professionals can acquire an item at a relatively low price because they know the ins and outs of the market and what types of auctions to invest in. They often factor in the buyer's premium and restoration costs before deciding on their investment.

Reselling with a margin: Once the item is purchased, these professionals can offer it for sale with a considerable margin, sometimes 2 to 5 times the purchase price. This price difference takes into account their costs (auction fees, transport costs, restoration), as well as their expertise and the time it takes to find the right buyer.

This practice explains why the prices you see on professional sites are not representative of the amount you could get for your item. As an individual, it is unlikely that you will be able to sell your item for the same price that a professional would resell it, because the latter add a significant margin to ensure their profitability.

6. Sellers’ Emotional Expectations

Sellers are often disappointed with appraisals because they overestimate the value of their objects due to the emotional attachment or personal history associated with the object. Although an object has strong sentimental value, this does not necessarily translate into market value.

Furthermore, the media coverage of record auctions, where some objects reach astronomical sums, contributes to creating a false impression that all art or collectible objects can sell for high prices. In reality, these exceptional sales concern rare pieces or pieces of exceptional artistic quality, and are not representative of the general market.

Conclusion

It is natural to be disappointed when the appraisal of an art or collectible object does not match expectations. However, experts base their appraisals on objective and realistic criteria, taking into account the condition, rarity and current demand. The prices displayed online, especially on professional sites, are not necessarily representative of the real value that an individual can hope to obtain. Professionals often buy at auctions to resell at higher prices, thus integrating a significant margin. In addition, it is important to take into account the fees and commissions related to auctions, which affect the final amount received. Adapting your expectations to these realities can help to better understand the estimates provided and avoid any disappointment.

Starting in January 2025, Antiope will allow you to obtain an instant and impartial evaluation.

You can now discover the Antiope site, submit your objects to us and obtain an exclusive estimate.

This is a unique opportunity to test the application before anyone else and discover the hidden value of your objects.

www.antiope.net