All you need to know about auctions

All you need to know about auctions

Existing since antiquity, auctions enable goods to be presented publicly, and sold by accepting the best bid. Auctions enjoy a good reputation, but it's not easy to find your way around : voluntary sales, judicial sales, online sales, live sales, online sales, at the Hôtel Drouot, in an auction room ... Find out all about it in detail.

The different types of auction

Auction sales can be of several types. Initially, two types of sales  should be distinguished: voluntary auctions and judicial auctions. 

Sales by so-called voluntary auctions

In so-called "voluntary" sales, the seller entrusts of his own free will to a trusted intermediary, in this case the auctioneer, an object which the latter will authenticate, appraise and estimate the price free of charge on his behalf, before putting it up for auction. These sales are voluntary because they are not forced : the person can decide freely whether or not to sell the object.

Auctie's is a voluntary sales company only.

Sales at so-called judicial auctions

Auction sales can be judicial : these are forced sales. These forced auctions are prescribed by law or by a court decision.  

They can only be carried out through the intermediary of a Ministerial Officer appointed by a court decision, namely notaries and, more frequently, judicial commissioners.

Judicial auction sales only come into play in certain types of case.

For example, when an item is abandoned in a garage or a furniture repository, a public officer is appointed to carry out the auction.

This is also the case for seizure auctions by customs. Sales taking place after companies have filed for bankruptcy are also judicial auctions.

The company in judicial liquidation has various debts, notably suppliers to pay.

To pay part of the company's debts, the auctioneer can draw up an inventory of the company's assets (Industrial equipment, vehicles, stock etc) and auction them off to recover part of the price which will be used to settle the liquidation.

What can be sold at auction?

Auction sales allow all types of goods to be sold, at the best price. The auctioneer opens the bidding at a low price, allowing anyone to participate by placing a bid.

But can everything be sold at auction? What types of goods can be sold? Auctions can also be of two types : they can involve real estate or movable property.

Selling real estate

Auction sales of real estate, i.e. apartments, houses and premises, are the prerogative of French notaries. Only notaries are authorized to carry out real estate auctions, subject to certain conditions.

As far as goods are concerned, there is also a distinction between auctions of tangible and intangible goods.

Auctioning tangible goods

Auctioning movable goods, i.e. material goods such as miscellaneous objects, can be carried out by any person empowered by law or court decision.

Tangible goods are tangible goods that can be touched : for example, a car, a painting, a piece of jewelry...

For auctions of tangible goods, anything can be sold : collectibles such as jewelry, furniture, paintings, sculpture, coins, medals, rugs, tapestries, collectible vehicles.

Sales can be specialized or general. Specialized sales tackle a theme : for example, a sale dedicated to vintage automobiles or 20th-century Decorative Arts, numismatics or stamps.

At Auctie's, you can entrust us with a wide choice of moveable goods, such as paintings, drawings, prints, wines and spirits, sculptures, housewares, porcelain services, earthenware, jewelry, fine leather goods ...

In addition, our varied, numerous and specialized experts ensure you a precise, adapted and rigorous expertise in each specialized field. The many experts working with Auctie's enable us to take on a highly varied range of lots. 

Auctioning intangible assets

When it comes to intangible assets, these are intangible assets, which have no physical existence of their own. Before 2022, auctioneers were only able to sell intangible goods at judicial auctions.

Since 2022, a reform has opened up the possibility for auctioneers to sell intangible goods as part of their voluntary auctions : this opens up the field of possibilities for auctioneers in terms of jurisdiction.

In the field of art, the popularity of NFTs and the possibility of putting them up for sale means that auctioneers such as Auctie's can now position themselves in this new market.

In addition, it is now also possible to sell trademarks, patents, goodwill and company shares as part of voluntary and judicial auctions. In particular, this enables companies such as Auctie's to sell real estate in voluntary sales.

How an auction 

The auction is different depending on whether you're in the seller's or the buyer's position. 

An auction on the seller's side

The seller makes an appointment, or sends photos to the auctioneer who values his property. At Auctie's, we carry out a première estimation à distance, and if necessary, we travel to your home to view the item, anywhere in France.

The seller then receives an estimate of his item from the auctioneer. The estimate is a price range (low - high) within which the auctioneer believes the object will sell.

This estimate is low, since it allows as many buyers as possible to bid, to make the final price soar.

If the seller agrees with this starting auction price, he decides to entrust the object to the auction house.

The auctioneer then draws up a record of the object in which he indicates all its characteristics (its material, weight, provenance, condition) with an estimate in a sales requisition.

The seller signs a contract authorizing the auctioneer to sell the object on his behalf in a future sale.

The auctioneer then proceeds with communication, advertising the sale by catalog, press and prior exhibition, for example at the Hôtel Drouot.

He also carries out research on the object to enhance its value : in libraries, catalogs raisonnés, archives but also by contacting specialized experts and laboratories, to get the most out of the objects entrusted by clients.

The auctioneer then auctions the object.

To remunerate itself, the auction house takes a fee from the seller out of the hammer price. These fees are agreed in advance with the seller.

They are deducted from the sale settlement and therefore from the price paid by the auctioneer to the seller. The legal deadline for payment is generally 2 months.

Auction on the buyer's side

As for the buyer, he or she can go to an auction show at Drouot, or to the Hôtel des ventes in his or her town. There, they can discover the objects that interest them. On site, he can ask the auctioneer and his team for any additional information about the item. 

He raises his hand or logs on to the Internet, to bid up to the maximum amount in his budget. On this price awarded under the auctioneer's hammer, he will have to calculate beforehand the costs that are added, called the buyers' fees : these generally amount to around 30% on top of the awarded price.

Good advice for participating in auctions

Good advice for selling during an auction

When it comes to auctions, good practice is to listen to the auctioneer's advice. With an average of 300 lots per sale, the auctioneer knows how to advise his client on the best way to sell his item.

For example, the estimate must be in line with the quality of the object. An estimate that is too high in relation to market prices is unlikely to arouse much interest among potential buyers.

For some objects, too, certain listing fees are necessary and enable the seller to better present his item.

For example, some artists who require a (paying) expert certificate (Camoin or Picasso among others) to be sold, or laboratory certificates on certain diamonds.

This advice offers added value to the object, which will thus sell for a higher result, as it is secured by a double approval : that of the professional that is the auctioneer and that of the competent referent authority.

Good advice for buying during an auction

As a buyer, many things are put in place to simplify your life.

-             The purchase order allows you to leave a maximum amount to the auctioneer who will bid for you, if you are in a meeting or on a plane. He will not exceed this amount.

-           Online platforms such as Drouot live and Interenchères allow you to bid from your sofa, on a train, on vacation ... They are a quick and easy way to win your favorite lots.

-            Indoor auctions remain the most traditional means, which is always interesting to experience. During the sale, you also discover lots you didn't even know existed.

You then receive an adjudication slip if you've won the lot. You have to pay it. At Auctie's, we're committed to making your life easier. That's why you can pay for your auction directly via a remote payment link. Once you've paid, our teams are at your disposal to collect your lot.