Midterm

Question 1

Chandelier Bidding

Answer 1

Fake bidding or bidding on behalf of the consignor, its legal up until the amount of the reserve, becomes illegal if it goes over. Highly regulated

Question 2

Fair Market Value

Answer 2

Is the median value between the low and high estimate

Question 3

Insurance Value

Answer 3

How much it would cost to replace the value of the piece: it is higher than the high estimate value

Question 4

Auction Estimate

Answer 4

Always comes first in regards to value

Question 5

Auctioneers Book

Answer 5

Only legal documentation of the auction and has names and info on consignors, lot information, estimate, and reserve

Question 6

Reserve Price

Answer 6

The lowest price stipulated by the seller to sell a lot at auction. It has to be at or below the low estimate.

Question 7

Buyers Premium

Answer 7

Percentage of additional charge on the hammer price of a lot that must be given by the buyer. The auction house then gives a percentage of that money to the seller, varies depending on the piece and consignor… up to200,000 = 25%… 200,000-3,000,000 =20%… 3,000,000+ = 12%

Question 8

Private Sales

Answer 8

Benefits: Privacy, Immediate, seller knows exactly how much he or she is getting

Question 9

Private Sale Vs. Selling exhibition

Answer 9

Exhibition is put on by the private sales department however; it can have pieces from various collections and not everything is on sale, good for publicity

Question 10

Shill Bidding

Answer 10

Is when anyone bids on a lot to increase the potential durability and price… family, friends, dealers, consignors… ILLEGAL

Question 11

Global Reserve

Answer 11

Used on a single owner sale with multiple lots, idea is to front load it so that you hit the minimum price required by the seller. Its looked at as a whole rather than individual pieces, trying to get rid of the entire collection for as much money as possible

Question 12

Bidding Hierarchy

Answer 12

1.Absentee bids- 2.room bids- 3.phone bids- 4.internet bids

Question 13

Total Knockdown

Answer 13

Take the total sold divided by the total bought in

Question 14

Total sold percentage

Answer 14

Divide the total sold by the total knockdown

Question 15

RSF Vs. USF

Answer 15

Rental Square Footage Vs. Usable Square Footage… usf is more important

Question 16

BIs

Answer 16

Passed, Bought in, Returned to owner, unsold

Question 17

Bidding Increments

Answer 17

Usually done at 10% of the previous price

Question 18

Bought In

Answer 18

If there are no bids on the lot or if the bidding does not reach the reserve price

Question 19

Guarantee

Answer 19

a Guarantee to buy the lot regardless of whether or not the bidding reaches the reserve price. Can be from the auction house, third party, or both.