The Major Auction Houses

Collectibles are sold through a range of auction venues, from international generalist houses to category specialists. The largest international houses include:

  • Christie's and Sotheby's: both offer the full spectrum of fine art, jewelry, watches, wine, and decorative arts. Both conduct major sales in New York, London, Hong Kong, Paris, and other cities, with live and online formats. Both also operate private sale divisions for transactions outside the auction room.
  • Phillips: focuses on contemporary art, design, watches, and photographs. Its sales tend toward 20th and 21st century works.
  • Heritage Auctions: the largest US-based house by number of transactions. Specializes in coins, currency, stamps, sports memorabilia, trading cards, comics, fine art, jewelry, and a wide range of collectible categories. Heritage operates primarily online and through scheduled live events.
  • RM Sotheby's: a partnership between RM Auctions and Sotheby's for collector automobiles. The dominant auction venue for significant vintage and sports cars.

Specialist regional houses cover particular categories or geographies: Bonhams, Rago/Wright, Skinner, Hindman, Swann Galleries (books, manuscripts, photographs), and many others have deep expertise in specific areas that the large generalist houses may handle less frequently or at lower price thresholds.

The right venue for a seller or buyer depends on the category, expected value, geographic concentration of likely buyers, and the house's specific track record in that category.

Registration and Bidding

Buyers must register before bidding. Registration typically requires:

  • Identity verification (government-issued ID)
  • Financial references or a credit card on file for amounts up to certain thresholds, or bank references for higher-value purchases
  • Agreement to the house's conditions of sale, which govern payment timelines, dispute resolution, title warranties, and other terms

Bidding formats include:

  • In-room bidding: the buyer attends in person, bids by raising a paddle or making eye contact with the auctioneer.
  • Telephone bidding: a house specialist telephones the buyer during the sale and relays bids. Usually arranged in advance; common for significant lots where the buyer cannot attend in person.
  • Absentee (left) bids: the buyer submits a maximum bid before the sale. The auctioneer's book staff execute the bid at the lowest possible price, not necessarily the maximum. Absentee bids are executed against the book and against live competition.
  • Online live bidding: through the house's own platform or third-party platforms, buyers bid in real time during a live saleroom auction. A small surcharge is sometimes added for online bidding through third-party platforms.

Payment is typically due within five to ten business days after the sale. Failure to pay by the deadline can result in the buyer being barred from future sales and the lot being re-offered.

Reserves and Estimates

Every lot in an auction has a reserve (almost always) and published estimates (always).

The reserve price is the confidential minimum price at which the consignor has agreed to sell. By convention at the major houses, the reserve is set at or below the low estimate. If bidding does not reach the reserve, the auctioneer signals a pass (sometimes by a convention like knocking the hammer and saying "passed" or simply moving on), and the lot is bought in. The consignor retains the object, but may owe the house a buy-in fee.

The estimates are the auction house's published opinion of the expected sale range, stated as a low-high pair exclusive of buyer's premium. They are set by house specialists and are meant to reflect likely competitive bidding, not a guaranteed outcome. Estimates serve several purposes:

  • They guide buyers about expected price level
  • They help consignors calibrate expectations
  • They serve as marketing signals: an estimate set just below an aspirational level can attract more bidders

Lots regularly sell above the high estimate when demand exceeds expectations, and pass below the low estimate (at the reserve) when demand is soft. Past sale results, tracked by the houses and by third-party databases, are a more reliable guide to value than estimates alone.

Hammer Price vs. All-In Cost

The hammer price is what the winning bidder's final bid represents at the fall of the gavel. It does not include the buyer's premium.

The buyer's premium is a fee charged by the auction house on top of the hammer price. It is typically a tiered percentage structure that declines at higher hammer price levels. The exact structure varies by house and changes over time. As of recent years, major houses have used structures in the range of roughly 26% to 27.5% on the first portion of the hammer price, stepping down to lower rates at higher amounts. These are illustrative; always check the current conditions of sale for the specific auction.

The all-in cost (total purchase price) is:

  • Hammer price
  • Plus buyer's premium (calculated on the hammer price, tiered)
  • Plus any applicable sales tax (where applicable by jurisdiction and category)

For a buyer, the planning cost must be the all-in figure, not the hammer price. For a seller (consignor), the net proceeds are the hammer price minus the seller's commission. The "spread" between what a buyer pays and what a seller receives is the total fee paid to the auction house, and it can represent a significant portion of the transaction value.

See the dedicated guide on collectible auction fees for a detailed breakdown of buyer premiums and seller commissions.

Online-Only vs. Live Auctions

Live saleroom auctions are conducted in real time with a human auctioneer in a physical location. They typically feature higher-value and more significant property, and they carry the cultural weight of the event format: a Christie's evening sale is both a commercial transaction and a social event for the collector market.

Online-only auctions do not have a live saleroom event. Bids are accepted over a fixed time window, often with a "soft close" that extends the deadline if a bid is received near the end (preventing last-second sniping). They allow:

  • Broader geographic access for buyers who cannot attend in person
  • Lower administrative overhead, which can make the format viable for mid-range lots that would not fill a live catalogue
  • Greater throughput, with more lots available across more sessions

Most major houses now operate both formats. Christie's, Sotheby's, and Phillips run dedicated online-only sales alongside their live saleroom programme. Heritage Auctions processes a large volume of business through its scheduled online auctions.

Fee structures in online-only auctions can differ from live sales, sometimes with higher buyer premiums to offset lower per-lot service intensity, and sometimes with additional platform surcharges if bid through a third-party aggregator. Read the conditions of sale carefully before registering.

The Consignor Relationship

A consignor is the owner placing property with an auction house for sale. The auction house acts as the consignor's agent, not a buyer of the property, and earns a commission from the sale proceeds.

Key elements of the consignor relationship:

  • Seller's commission: a percentage of the hammer price deducted from proceeds before remittance to the consignor. For ordinary lots, commissions can range up to 15% or more. For significant property, commissions are often negotiated.
  • Negotiated terms: a highly desirable item brings competitive interest from multiple houses. Consignors of important property can negotiate reduced or waived seller's commissions, catalogue essay placement, marketing commitments, and other terms.
  • Guarantees: for significant lots, a house may offer the consignor a guaranteed minimum payment, regardless of whether the lot sells at auction or at what price. This transfers price risk from the consignor to the house (or to a third-party guarantor). Guarantees represent an additional cost or risk to the house and are reflected in their overall economics.
  • Property loans and advances: some houses offer loans or advances against anticipated auction proceeds, allowing consignors to access liquidity before the sale closes. These carry interest and are structured against the object as collateral.
  • Consignment timing: major houses plan their saleroom calendars months in advance. Consignment deadlines for a major sale are typically several months before the sale date. Online-only sales may have shorter lead times.

Frequently Asked Questions

What is the difference between the hammer price and the all-in cost at auction?

The hammer price is the price at which the auctioneer accepts the final bid. It does not include the buyer's premium, which is a fee charged by the auction house on top of the hammer price, typically expressed as a percentage. The all-in cost (sometimes called the total purchase price) is hammer price plus buyer's premium plus any applicable taxes. At major auction houses, buyer premiums are typically tiered, running higher on the first portion of the hammer price and declining on higher amounts. A buyer who plans around the hammer price and ignores the premium can meaningfully underestimate the actual cost of acquiring an item.

What is a reserve price and what happens when it is not met?

A reserve price is the minimum price below which the consignor has agreed in advance that the lot will not be sold. It is confidential and typically set at or below the low estimate published in the catalogue. If bidding does not reach the reserve, the auctioneer passes the lot (the lot 'passes' or 'is bought in'). A passed lot is not sold at auction and the consignor retains it, though they may owe the auction house a buy-in fee. Passed lots can sometimes be purchased immediately after the auction at or above the reserve through private negotiation with the auction house.

How do auction estimates work?

Auction estimates are the auction house's published pre-sale opinion of the range within which they expect a lot to sell, based on comparable sales, condition, provenance, and current market conditions. They are expressed as a low and high figure, each exclusive of buyer's premium. Estimates are advisory, not guaranteed outcomes: lots can sell above the high estimate if competitive bidding drives the price up, and they can pass (fail to sell) if bidding does not reach the reserve. An estimate without a reserve listed sometimes means the lot has no reserve; other times it simply means the reserve was not published. Check the terms of sale.

What is the difference between a live auction and an online-only auction?

A live auction (also called a saleroom auction) is conducted in real time with a human auctioneer in a physical room, with buyers attending in person, by telephone, or by absentee bid. Online-only auctions are conducted entirely online without a live saleroom event, often with bids accepted over a fixed time window rather than in real time. Live auctions typically feature higher-value and more significant items; online-only auctions have expanded access for buyers globally but may charge the same or similar buyer premiums. Some auctions combine live saleroom events with real-time online bidding.

What is a consignor and what terms do auction houses offer?

A consignor is the owner who places an item with an auction house for sale. The auction house acts as the consignor's agent and charges a seller's commission, which is a percentage of the hammer price taken from the sale proceeds before they are remitted to the consignor. For high-value or desirable items, seller's commissions can be negotiated or waived, and auction houses may even offer guarantees (a minimum payment regardless of whether the item sells or at what price), advances against the expected proceeds, or property loans. The terms vary significantly by house, property category, and the competitive interest of other houses in the item.

Which auction houses sell collectibles?

The major international auction houses include Christie's and Sotheby's (both offering the full range of fine art, jewelry, watches, wine, and other luxury categories), Phillips (contemporary art and design, watches, photographs), Heritage Auctions (largest US-based house by volume, specializing in coins, stamps, sports memorabilia, comics, art, and a broad range of collectibles), and RM Sotheby's (automobiles, a joint venture between RM and Sotheby's). Specialist houses exist for specific categories: Bonhams, Rago/Wright, Skinner, Hindman, Swann Galleries, and many others with regional or category expertise. The right venue depends on the category, value, and intended buyer geography.

References

This content was prepared by the Swoopr Editorial Team in September 2026. Fee structures, conditions of sale, and guarantee practices described are illustrative and change over time. Always review the current conditions of sale published by the specific auction house before bidding or consigning. Nothing here is personalized legal or investment advice.