What is the concept of Art Auction
A deep dive in Art Auction Industry
You must have thought of what is this auction business of Art. What are these presale estimates, opening bids or reserve prices? And then, what is the worth of an art? How to bid for them?
To start with art auction hong kong, any presale estimate of an art is the price range expected for the sale of an art. Further, Reserve Price is the starting or the minimum bid price set by the consignor/owner or the auction house. Opening bid is the amount lower than the presale estimate and reserve price, this strategy attracts potential bidders with bargains.
Auction houses review a large amount of data of any consigner which includes their past and recent sales history with their record of retail gallery as well as the popularity of an artist in the market. Art auction houses have to be careful with what they showcase in their Auction as anything that sells less than presale estimates or not sell at all portraits a bad image of the auction house.
The calculation of presale estimates, reserve price and the opening bid price is based on the analysis done by the auction house employees. The estimates are usually the educated guess on the worth of art basis the data they have in hand.
However, the presale values of art works are done on the basis of the selling price of the similar work sold in the past. The condition of the Art, artists and the desirable subject matter and the economic health of the market are some important factors which are considered in art auction hong kong.
The quality of bidders who will come to purchase, the presale estimates acts as a rough guidelines of what auction houses think art will sell for. Auction buyer must always research the art before bidding.
In Traditional art auctions, the concept of presale estimates are of least importance as the final selling price is influenced by publicity, rumors, bidder psychology, bidding competition, or consignor’s expectations. To take up an example, sometimes the artist wants to keep the presale estimate very high which ultimately leads to no sale at all, or the condition of the art is too bad to bid.
In any auction house, if the public relations and the marketing are good, lower presale estimates results high selling prices.
Another mode of auction other than auction house is Online Auction which happens on auction portals. For online buyers, any ridiculous opening bid may have higher financial consequences when they rely on online presale estimates, the reserve prices and online opening bids. On online auctions, the opening bid or the dollar amount set by the artist shall never be considered as the actual worth of the art work.
Other than art you may try wines auction, jewelry, handicrafts etc