How to Sell Items Through an Auction Company

Auction companies can sell everything from a single valuable piece to the contents of an entire house. This guide is for sellers, including heirs and downsizing homeowners, who want a clear picture of how the process works from first contact to final payment.

Decide whether auction is the right route

Auction works well when items have buyer demand, when you want a firm timeline, or when you have a large volume of goods to sell at once. Competitive bidding can bring strong prices for desirable items. On the other hand, prices are not guaranteed, and common household goods may sell for modest amounts.

Other options include estate sales, consignment shops, dealers and selling items yourself. It can help to talk to more than one type of business before you decide.

Gather information about your items

Before contacting an auction company, make a simple list of what you want to sell. Include:

• Clear photos of each item, plus any marks, labels or signatures.
• Measurements for furniture and art.
• Anything you know about the item's history, such as where and when it was bought.
• Receipts, appraisals or certificates if you have them.

Do not clean, repair or refinish items before showing them to the auction company. Well-meant cleaning can reduce value, especially for coins, metals, old finishes and artwork.

Make first contact

Most companies start with photos sent by email or through a website form. For larger collections or house contents, they may visit in person. Ask what kinds of items they sell, how often they hold sales, and whether your items fit their buyers. A company that specializes in your category may reach better buyers.

Understand the contract

Before the company takes your items, you will usually sign a consignment agreement. Read it fully and ask questions about anything unclear. Key points include:

• Seller's commission: The percentage of the hammer price the company keeps. Rates vary by company, item value and volume.
• Other charges: Photography, cataloging, insurance, transportation, advertising or fees for unsold items.
• Reserves: Whether you can set a minimum price, and what happens if an item does not reach it.
• Sale timing: When and in which sale your items will be offered.
• Payment terms: How long after the sale you will be paid, and how.
• Withdrawal: Whether you can take items back before the sale, and any fee for doing so.

Delivery and cataloging

You may deliver items yourself, or the company may pick them up, sometimes for a fee. Get a written receipt listing every item the company takes. The company then researches, photographs and describes your items, sets estimates, and decides how to group them into lots. Ask to review descriptions for higher-value items, and share any information you have that could help.

Sale day

Your items are offered alongside other consignors' goods. You are usually welcome to attend or watch online. Sellers generally should not bid on their own items to raise prices; many terms of sale prohibit this, and rules on it vary by state. If you want to protect a minimum price, discuss a reserve with the company instead.

Settlement and payment

After the sale, the company collects payment from buyers and then sends you a settlement statement. This shows each lot, its hammer price, the commission and any deductions, and the net amount owed to you. Check it against your receipt. Payment timing varies, and companies often wait until buyers' payments have cleared before paying sellers.

Unsold items

Ask in advance what happens to items that do not sell. Options can include offering them in a later sale, selling them at a lower reserve, returning them to you, or donating them. Some contracts charge a fee for unsold items, so make sure you know before you sign.

Quick checklist

• Photograph and list your items before calling anyone.
• Do not clean or repair items first.
• Ask about commission, fees, reserves and payment timing.
• Read and keep a copy of the consignment agreement.
• Get a written receipt for everything you hand over.
• Review your settlement statement when you are paid.