What is an Auction House?
Definition: An auction house is a company that sells artworks, collectibles, and other valuable objects through competitive bidding, typically during public or private sales. It serves as an intermediary between consignors (sellers) and buyers, managing marketing, authentication, and logistics for each sale.
The two most prominent auction houses are Sotheby’s and Christie’s, both of which conduct high-profile evening sales featuring modern, contemporary, and blue-chip artists. Regional and specialized houses also play vital roles in local and niche markets.
Auction houses set market benchmarks and provide transparency in valuation. Sales are often accompanied by glossy catalogues, condition reports, and pre-sale estimates. Successful auctions can dramatically impact an artist’s secondary market value.
Key Terms: hammer price (final bid), buyer’s premium (fee added to the winning bid), reserve price (minimum accepted bid), and consignor agreement (seller contract). Houses may also conduct online-only auctions and private sales.
