Have you thought about investing in art or picking up a piece that resonates with you? Here’s an overview of what to expect at a live art auction.

Live auctions are among the most exhilarating experiences in the art scene. They draw in collectors, art lovers, and auction house staff, all gathered to bid on artworks that could sell for staggering amounts. Often, art handlers in white gloves showcase the pieces, creating an electrifying atmosphere as the auctioneer calls out bids. But what exactly goes on during a live auction, and how are significant artworks valued? Let’s explore.

Understanding Auction Dynamics

A common myth is that art auctions are exclusive events. This is incorrect; live auctions are generally open to the public. Occasionally, tickets may be required for entry, and if so, you can usually contact the auction house for access. In the lead-up to the auction, artworks are often displayed for public viewing during what’s known as the “presale exhibit,” allowing potential bidders to examine pieces in person.

Stunning Sales Figures

In 2020, public auction sales amounted to $17.6 billion, according to the Art Market Report. Major auction houses like Christie’s, Sotheby’s, and Phillips recently achieved record-breaking sales during a week known as “Marquee Sales Week.” For instance, Sotheby’s reported total sales of $1.33 billion, while Christie’s reached $1.1 billion.

However, you don’t need to be wealthy to invest in art. Although large sums dominate headlines, many auction houses offer pieces priced in the low thousands. Additionally, platforms like Yieldstreet and Masterworks allow you to invest in shares of artworks, although this process occurs outside of live auctions. For now, let’s focus on the bidding aspect for those ready to dive in.

Placing Bids

First, to bid on an item—whether in person or online—you must register with the auction house. This can typically be done on the day of the auction or during the preview period.

Once registered, you’ll receive a paddle for bidding. You must also be of legal age to participate. Attending a live auction is an exciting experience, but if you can’t make it, options like phone bidding, online bidding, or absentee bidding allow you to place bids in advance.

Determining Auction Prices

Every item at an auction undergoes valuation by the auction house. The artwork must be verified and appraised to confirm its authenticity and ensure ethical pricing by industry standards. Factors influencing valuation include the artwork’s quality, subject matter, rarity, past auction performance, and market popularity.

Each piece is distinct, and so are its selling circumstances. After valuation, an estimated value is assigned to the artwork.

Research Before You Bid

Before placing a bid, review the auction catalog, available both online and in print. This booklet contains extensive details about the artwork’s background, pricing, and previous owners. Most auction houses also offer art advisors to help answer any questions you may have. If possible, view the artwork at the presale exhibit to get a sense of its presence.

Once you start considering bids, your selected item will receive an auction lot number. Keep this number in mind as the auction progresses to ensure you're prepared when it comes up for bidding.

In the catalog, you’ll find the pre-sale estimate, which indicates the expected selling price range. The reserve price—the minimum amount the auction house or seller will accept—means if bidding falls below this figure, the artwork won’t be sold. Opening bids are often set lower than the pre-sale estimate to attract interest.

Remember, the hammer price—the final announced price—doesn’t include buyer’s premiums, which can vary by auction house. After the auction, successful bidders will receive an invoice, and upon payment, they can collect their new artwork.