What is a typical reserve fee from a major auction house?

Barry

Am I correct in assuming it's only charged if the coin doesn't sell?
Thanks.

coinguy1

Correct Barry.

Edited to add: The reserve fee is usually negotiable and dependent upon factors such as:

1) how large/valuable the consignment is....

2) how low/conservative the reserve is....

3) the % of lots (or % of dollars) that meet the reserve compared to the % that doesn't meet the reserve - often, a sliding scale reserve fee % which takes the aforementioned into account, is used by the auction house...

4) how valuable/important/desirable a given coin is....

Catch22

...and it is usually the "buyer's fee" for whatever amount it would be at your reserve.

coinguy1

<< <i>and it is usually the "buyer's fee" for whatever amount it would be at your reserve. >>

I'm not sure that I understand that, but the reserve fee to be charged is arrived at by taking the reserve fee % and multiplying it by the reserve price which was not met.

Thus, if the reserve on a particular coin was $2000 and the agreed upon reserve fee 4%, if the lot didn't sell, the charge would be 4% of $2000 or $80 total.

Barry

Is there a usual percentage for that number, Mark?

coinguy1

Barry, a number of auction houses start out at about 5% (though, under certain circumstances it can conceivably be even higher) and might move the rate down from there, depending upon the factors I mentioned in my first post.

Catch22

I recently auctioned 30 coins or so with Heritage and placed reserves on about half of them. All but one met the reserve and I was charged what was in effect the "buyer's premium" at my reserve price as if I had purchased the coin. In my case the buyer's premium was 15% of my reserve price.

I'm sure Mark is correct on the actual fee depending on a lot of factors.