Question about a lot in the last Hunt Auction

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Posted By: CoreyRS.hanus

My understanding how live auctions such as Hunt's, Sotheby's, Christies, etc. work is that there ARE undisclosed reserves which BY LAW may not be higher than the low-end estimate. Therefore if the estimated value for the lot is say 1,500-2,000, the reserve may not be higher than 1,500 and may in fact be lower. That is why in many instances the estimated values for lots appear too high. The auction house is well aware that the lower the estimates, the more interest will be generated and more often than not that will translate into a higher realized price. However, there is a risk to that strategy. The item could fall flat resulting in a realized price way too low for what the seller wanted. Therefore many sellers to guard against that happening insist on a healthy reserve. That in turn FORCES the auction house to raise the estimated value so the low-end estimate is not lower than the reserve.

Over the years when there have been items I've been interested in but noticed extremely high estimated values, I've tried to feel out the auction house to see if I can get any bits of info that could help me get a sense for what the reserve is (which live auction houses by policy do not disclose). I am interested to know if the reserve is at or near the low-end estimate. If I get the sense it is then I know that this is a lot I will not get my hopes up for winning because it will require too high a bid.