How To Bid At An Art Auction like a Professional Art Dealer Part 1

Dr. Mark Sublette of Medicine Man Gallery explains how to buy art at an auction.
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Today I'm going to give you two parts. Today is number one part - on auctions and how to bid at an auction. I do this on a fairly regular basis, and it's important to understand the do's, the don'ts, and the insider information of how a professional (like me) will go to an auction and buy. A misconception actually - it's very interesting - that many clients think, “Oh, well he buys everything at auction.” I will - well the reality is (that) it's a very small percent of what we buy, and generally, when we do buy something at auction, it's because it's either a very specific piece or sometimes we're buying for a client who needs our expertise, and wants to have the kind of things. I'm going to teach you right now on what the do's and don'ts are if you're buying in an auction. So, today's lesson is the beginning to set up how to buy as a professional. First of all, when you go to an auction (and we're talking about auctions where you'll actually attend and bid live versus an internet. Internet auctions are a different ball of wax, and I have a video on how to bid and how to look at artwork on the internet, so you can go to that) but we're going to a live auction. First of all, and probably the most important tip that you can take away from this is: please go and see it in person. Don't use photographs on this, especially if it's a very expensive piece. A professional can maybe get away with it, and I do it sometimes on a field that I know very, very well, and feel extremely comfortable with who I'm talking to on the other end of the line and seeing the photographs. But, even myself, I try to always view it in person, because if I don't, I'm (and you’re) going to get burned. It happens every time; you'll get the piece and you go, “I didn't see that crack or it's a little lopsided.” There's something that you can't appreciate, at least in the technology we have currently, that you could if you used your own eyes and hands and senses and felt the piece. When you go talk to whoever is doing the auction, they'll give you information that you might not have ever expected, like, “We really have a lot of interest in this piece,” or “We don't have really any interest.” You just don't know, or they may say, “Yeah, well I think there may have been a little something going on with this piece at one time. I'm not sure.” You can get a condition report and you should. A condition report will explain what somebody has looked at the piece and (said) “here's the problems,” or “no problems” that they've found. Whether it's a painting or a piece of pottery, there always should be a condition report, and with major auction houses that's a given. Minor auction houses - sometimes you're just not going to get it, which it again means you need to look at the piece yourself, and make your own determinations. I always look at a condition report, but quite frankly, the only one I really trust is me, because sometimes I see these condition reports and they either just don't get the gravity of what's going on with the piece, or sometimes it's the other way around. So, go look at it. Talk to the auctioneer; talk to the person who owns the auction house and find out as much information as you can. The next thing before you ever bid - you need to know how much you're going to spend on it. Professionals set a number - that's it; they're done. I'm a professional (and) before ever bid I know exactly what I'm going to pay, and this includes the buyer's premium. Do not forget the buyer’s premium. This can be between twenty and twenty-five percent of the cost of your object. So, if they're knocking it down at $1,000, you're paying 1,200. Don't forget this; don't think, “Oh, I got it for a thousand,” because quite frankly, you didn't. You paid 1,200 and if you didn't take that into consideration, then you know you're not a professional. The other thing you need to do and consider is: taxes. Are there going to be taxes involved? Generally, if you're going to the auction and bidding on it live, you're going to have to pay taxes if you bought it, unless you have a resale license and/or dealer. You need to take this into consideration when you're paying these. Many of the auction houses are in major cities like New York, or LA, or San Francisco, and they have fairly significant tax rates, so you have to build this in to the cost of what you've got to pay. One other thing is that (when) you go to one of these auction houses you need to be able to (if you're smart) talk to the auctioneer - the actual person who's going to be taking the bids. If it's something you really want; this is something that you've really desire, make sure they know who you are (and) that you're interested...