Auction House Question about reserve price or phantom bids
jmski52
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If a slabbed coin sells for a specific amount, say $865.25 in an auction one week, and it is listed in a subsequent auction, in which is sells again for exactly the same $865.25 - does this mean that the original owner is bidding on the coin up to a reserve point and that the coin didn't sell?
If that's the case, do auction houses charge a consignee for a reserve price, or a "phantom reserve price"? It's got me flummoxed.
If that's the case, do auction houses charge a consignee for a reserve price, or a "phantom reserve price"? It's got me flummoxed.
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<< <i>Sometimes the potted plants in the auction room can be very active bidders.
Teletrade's PP used to be named incremental bid. Somebody once sent me a printout of the bid activity on one of my consigned coins.
does this mean that the original owner is bidding on the coin up to a reserve point and that the coin didn't sell?
Possible, but very unlikely. It usually means that the coin has a reserve and that the reserve was not met. It depends on the agreement that the consignor has with the auction house, but for the average guy like me, there is a "buy back" fee. That is always less expensive than for a consignor trying to protect one of his own coins with bids. The fee covers all of the time and effort of the auction house. Things like cataloging, photography, marketing, and general admin.
When you are sitting in a live auction, and you hear, "...to the house," that means that the lot is a pass because it did not meet reserve. Most auction companies will put "not sold" in the prices realized for those lots.
Some states have very strict laws about buy backs and or bidding on an item you own, some states have very vague laws pertaining to auctions.
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