2014-04-25 14:27:43 Author:admin Source: Size of the characters:[big][middle][small]
Sotheby's Auction Fees For Sellers:
Each work has a “reserve,” which is the minimum price the owner (seller) will accept, and the auctioneer generally starts the bidding below that and moves the price up in regular increments, awarding the purchase to the highest bidder. If the final price fails to reach the reserve, the lot remains unsold. In addition to the sales price, Sotheby’s Auction Fees known as a “buyer’s premium” of 20 percent on the first $100,000 and 12 percent on the rest. And no one can buy accidentally: Potential bidders must register beforehand (and show proof of assets, if the lot is particularly expensive).
In addition, many of the most serious bidders aren’t even present at the time of the auction. Museums and prominent collectors often prefer to bid anonymously by phone or leave a maximum bid with an auction house representative because a sign of their interest could drive up the price.
So why go if you can’t afford to buy? Because the pre-auction viewings afford a rare opportunity to fondle great works of art. At this week’s Sotheby’s viewing, for example, the Picasso that sold for $104.2 million was under armed guard, but anyone could walk in off the street and touch a half-million dollars’ worth of Cezanne or Renoir. This seemingly reckless indulgence is permitted by the auction houses because lots are sold “as is” and potential bidders need to be able to examine the work closely for defects that may detract from its value. Of course, for those with no interest in art, auctions offer the malicious pleasure of watching the equivalent of a small nation’s GDP being traded for some colored oils on cloth. (Sotheby's Auction Fees For Sellers)
Bonus Explainer: In 2001, Sotheby’s executives were convicted of having colluded with Christie’s to fix prices. Since the whole appeal of auctions is their transparency, how did the auction houses do it? By colluding on the commission paid by the seller, which is, of course, where the auction house makes its money. In a secret 1993 meeting, the two houses agreed to raise commission fees and eliminate competition over discounting, a deal that resulted in sellers being overcharged by as much as $400 million. (Refer to: seanrocha.com )
About Sotheby's:
Sotheby's is a multinational corporation, originally British but now headquartered in New York. One of the world's largest brokers of fine and decorative art, jewelry, real estate, and collectibles, Sotheby's operation is divided into three segments: Auction, Finance, and Dealer. The company’s services range from Corporate Art Services to Private Sales.
Sotheby’s is the world’s fourth oldest auction house in continuous operation, with 90 locations in 40 countries. As of December 2011, the company had 1,446 employees worldwide. It is the world's largest art business with global sales in 2011 totaling $5.8 billion and it sold $5.4 billion worth of art in 2012.
Sotheby’s was established on 11 March 1744 in London. The American holding company was initially incorporated in August 1983 in Michigan. In June 2006, Sotheby’s Holdings, Inc. reincorporated in the State of Delaware and was renamed Sotheby’s.
Edited by Kevin from Xiamen Romandy Art Limited. Founded in 2001, Xiamen Romandy Art Co., Ltd. is one of the leading oil painting galleries engaged in the production of handmade oil paintings in China. Our high quality products and excellence in service have helped us to enjoy a high reputation among our clients. Our overall goal is to continue to improve the quality of our products and service in the future.
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