The AH I use generally offers me ca. 33% of the estimated value and has done so for values of all my lots combined as low as $15K.
To be clear, this only happens once the items are in hand and once I have signed a contract agreeing to the terms of the auction process.
If for some reason the lots I have consigned have been so badly estimated that they don't even net me (after the agreed upon cut the AH gets) the 33%, I will owe the difference to the AH. If they do better, then the advance will be deducted from my net proceeds. There is no interest involved either way.
I don't know the technical term, but I think of this as a short-term, interest-free loan with the lots they have in hand as collateral. I don't want to mention the AH because I do not know what their overall policy is...the % they offer and the minimum value needed to get this % may change based on the customer and value of the lots consigned.
I believe the reason AHs do this is an an inducement to get consignments. Having some cash up front may be the deciding factor in what AH to use (assuming other things are roughly equal).
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Last edited by molenick; 07-11-2022 at 12:10 PM.
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