Quote:
Originally Posted by glchen
The thing to remember here is that auction houses try to maximize prices for their consignors, so they can get more consignments down the road. That’s the driving factor behind the closing process.
For the closing time, they are looking for a time convenient to both coasts. Close too early and the West Coast is still at dinner. Close too late and the East Coast is already asleep.
Generally closing the entire auction at one time has yielded higher prices since people can switch their funds to other lots of their top targets get outbid. However a large segment of bidders got fed up with this late night process that they basically started boycotting auctions with these types of closes. Therefore most auctions have moved to lot by lot closing for the convenience of the bidders.
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I don't think this is true. I think closing the auction all at once loses consignors money. When you do that, one of two things happens. Either the auction goes on into the wee hours of the morning or you set a hard close at the end and it becomes eBay with buyers sniping auctions. And I have had that happen with me leading an auction and then it closes and someone has out bid me with no chance to bid again.
I have noticed with Heritage that many lots enter extended bidding and get no bids. Many more are closed within 30 minutes to an hour. Very few of the auctions I have watched have gone on longer than that. Who do you think is getting the most? The one with a high bid before extended bidding or the one with auctions sniped or bought at 3-4 am?