Auction (Auktion)

When an auction is worth it

For objects with collector interest and a market value that is hard to determine: art, high-end watches, rare instruments, significant collections. Here competition between bidders can produce prices that a direct purchase never reaches.

It makes no sense for ordinary household goods, for items with a clear market price, or when things have to move quickly — depending on the auction house, two to six months pass between consignment and payout.

The cost side

Auction houses charge the consignor a seller's commission, typically 15 to 30 percent. On top of that, depending on the house, come charges for cataloguing, photography, insurance and transport. The buyer additionally pays a buyer's premium.

So budget with the net proceeds, not the hammer price. A hammer price of CHF 5,000 leaves roughly CHF 3,700 net after a 22 percent commission and CHF 200 in additional charges.

The risk of not selling

If the reserve price is not met, the object goes unsold. You then have to take it back or put it into another auction — often at a reduced reserve, because an item that has already failed to sell loses appeal in the market.