20-10-2024, 08:34 PM
The "estimate" is very often not a realistic estimate, but usually an indication of the reserve price, the lower estimate being the actual reserve. The reserve price is usually agreed between vendor and auctioneer taking into consideration recent market prices and the vendor's urgency to sell. When the vendor is an executor of a deceased estate then often a very low reserve is set to make sure of a sale; sometimes "offered without reserve" is declared. A very low estimate is favoured by auctioneers as this will often attract more buyer interest and virtually guarantee a sale. The auctioneer will usually have a little flexibility and will be able to bring the hammer down at a figure 10% under the reserve price.
Remember that classic cars sold at auction attract the dreaded buyer's premium, usually 8-12% plus VAT on that premium. Compare that to household goods, antiques etc when BP is usually 15-25% plus VAT and often much higher still!
Remember that classic cars sold at auction attract the dreaded buyer's premium, usually 8-12% plus VAT on that premium. Compare that to household goods, antiques etc when BP is usually 15-25% plus VAT and often much higher still!