Auction house estimates

[DHogan]

I still consider myself a lurker on this fine message board. I've never had the chance or extra money where my wife would ever consider letting me spend anything on a major auction. I received a flier from Antiques & Auction News about Robert Edwards $9.56 million record auction. Do auction houses give a low estimates on items in order to make things more exciting in hopes of people bidding ?

[Hankphenom]

I think that's the theory. I've never bought into it, and I've never liked it. As a consignor, why take the chance of making bidders feel stupid if they go much much higher than the supposed "estimate?" As a bidder, it's only a distraction. Isn't the auction itself supposed to provide the information of what something is worth? What business is it of the AH to make a guess at that, which they're not really doing anyway. Silly game with no good purpose, In my opinion. But they'll tell you til they're blue in the face how clever they are to do it, those "pros from Dover."

[Exhibitman]

In some states, depending on the law, the auction house needs to state a value estimate in order to have a reserve. Auctioneers also believe that putting a figure in print coaxes bidders to bid into that level.

[drc]

It's true REA's are way low. I could only speculate why. A theory I've heard once or twice is that they like to advertise that realizes prices went way over auction estimate. But that's just a water cooler theory.