Sotheby's vs. Mastro et. al.

[Archive]

Posted By: Harry Wallace (HW)

There is some sort of law in auctions that if there is a hidden reserve then it cannot be more than the low estimate (or something like that).

For example, if an item has an estimate of $10,000 to $15,000 then the hidden reserve cannot be more than $10,000. But, it could be $9,000 which means that if someone is not willing to bid more than the $9,000 reserve then the card will go unsold.

This is common practice at Sotheby's and Christies. I also believe that this is why Hertiage lists an estimate in their catalogs. Usually these reserves are done with very expensive pieces of art, cars, etc. but I bet it trickles down to the sports memorabilia and lesser auctions as well.

I think that Corey Shanus mentioned something about this in another thread and I am sure that he knows much more that I, but this is how I understand the estimate/reserve relationship to work.

No estimate = no hidden reserve.