You don’t have to own a Michelangelo or a centuries-old antique to make a trip to the auction house worth your time.
Even if you don’t own priceless artefacts, you could make a hefty profit by selling some of your belongings at the auction house.
For example, a first edition copy of the first Harry Potter book sold at auction for more than £21,000 in February after it was discovered among the belongings of a deceased man set to be thrown away.
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Books are not the only type of item that you could sell at auction.
Auction houses are increasingly selling everyday things that have become collectables, like vinyl records, stamps, and watches. If you have the right items, you could be in for a major cash boost.
Why pick an auction?
Auctions are a great way to sell your rare items because of the expertise that the right auction house can provide for you. As houses earn a commission from every sale, it is in their best interest as well as yours to faithfully value your items.
When it comes to selling your items, an auction also connects you with a base of buyers who will often know enough about the type of item you’re selling and understand its true value.
At the same time, the nature of bidding means that your item is reaching close to its maximum value as buyers compete with one another to buy it. This means that you could possibly get far more than you expected.
These days, many auctions also take place simultaneously online and in-person, meaning that you are able to access a worldwide pool of potential buyers.
What can you sell at an auction?
Broadly speaking, you can sell pretty much anything that is valuable at an auction as they act as marketplaces just like any other.
However, the extra hassle that comes with choosing an auction only tends to be worth it if your chosen item is worth a significant amount of money.
This being said, there is no restriction on the type of item you can sell at an auction. While traditionally the goods sold at them tend to be items like art, sculptures, furniture, and rare jewellery, other items are increasingly being sold.
For example, there has recently been an increase in demand for 1990s records, according to Wessex Auction Rooms.
As vinyl was the most common way to listen to music before CDs and streaming, the chances are that you probably have a pile of them sitting in your attic – some of these records could now be worth far more than you paid for them.
You could also have some rare books sitting on your shelves. While some of the most expensive books sold at auction are hundreds of years old, many relatively modern books are fetching high prices these days.
The Tiger who Came to Tea’ (which was published in 1968) sold for £3,500 at Forum Auctions.
Increasingly, collectable toys have also been gaining popularity and fetching much more than their retail price at auction.
Certain rare Pokemon cards have been sold for over $5 million – a one-of-a-kind card that featured the brand’s mascot ‘Pikachu’ was bought for this much by social media influencer Logan Paul.
How does an auction work?
The purpose of an auction is to sell items in such a way that theoretically maximises their value among the available buyers in the room.
This is done by allowing the buyers to bid increasing amounts of money for the item, and then selling them to the highest bidder. With each bid, the price of your item increases until the point at which nobody wishes to pay more.
Traditionally, auctions involve a person at the front (the auctioneer) calling out prices and acknowledging when buyers accept them. Then, once the bid has been accepted, the auctioneer will raise the price and determine whether there is any interest in selling at that point.
Once the maximum price has been achieved, the auctioneer traditionally bangs a hammer to declare that the auction has finished.
The downside of this approach is that while the auction process will theoretically get the maximum price for your item, it is limited to just the people bidding on it in the room. If the buyers have no interest in the item you’re selling, it could be sold for less than you may like.
However, in the modern age, this problem has been somewhat alleviated as many auctions have moved partially or completely online. This way, people interested in your items can bid from wherever they are in the world.
How do I sell my goods at an auction?
If you have decided that the best way for you to maximise your profit by selling your old items is through an auction house, then you should begin by making sure that they are actually valuable.
Max Hesler, book specialist at Forum Auctions, says: “The two key points that sellers should assess is desirability and condition.”
Hesler uses the example of a book and explains that while it may be rare, “if the author or subject is not of interest to collectors then ultimately the rarity carries little weight.”
This logic follows through for many items that you may want to take to auction.
Validate your items
Though it may be difficult to admit, sometimes old valuables do not appreciate in value and are not worth as much as you think, and items that you may think are rare could be quite common. This is why it is important to validate that what you have is actually worth something.
To validate your item, the first thing you ought to do is some online research to check that what you are selling has the hallmarks of rarity.
If you are selling a book then you should check its edition, the publication date, and potential printing errors that make it more valuable.
For example, lucky owners of first edition Harry Potter books will know theirs is rare because there will be a missing ‘o’ in ‘Philospher’s Stone’ on the back cover.
Similarly, rare editions of The Beatles’ White Album have low serial numbers and the original logo of their record label ‘Apple’ – these can fetch up to £10,000.
Pick the right auction house
Once you have determined that your item is likely to be valuable, the next step is to research different auction houses and find one that caters to your needs.
To maximise your gains, you should pick an auction house that is appropriately specialised in the type of item you’re trying to sell.
For example, you are far more likely to fetch a good price on a rare book from an auction house that specialises in them because they have much better market knowledge, and their customers are likely to know more about the rare book market.
Making sure that the auction house you choose has a good reputation is also vital. Take a look at what the auction house has sold before and examine the quality of their listings.
Get a valuation
The next step after you have picked the auction house is to book in a valuation.
This is where picking the right house becomes apparent, as their experts will have far more experience with the type of item that you’re selling. This expertise will mean they are able to provide you with the best advice and valuation.
During the valuation session, a member of staff at the auction house you choose will inspect your item and look for signs of rarity, as well as determining the condition of the item.
These sessions tend to be done in person, but many auction houses now also allow them to be conducted online and through messaging services like WhatsApp.
Valuations are often free, but it is always best to check this is the case for the auction house that you choose.
Take your item to auction
Once you and the inspector are happy with the valuation of your item, you can proceed with the auction process.
Auction houses typically take percentage fees for the sale of your item in order to make the process profitable for them. Fees tend to be around 15% to 20% of the sale price, and there may be further expenses on top.
Hesler at Forum Auctions says you “should always make sure to check the fees and terms carefully before consigning” so that you aren’t hit with any nasty surprises when your item goes to auction.
You can compare an auction house’s fees with their competitors to make sure you’re getting a good deal and maximising your profit.
You’ll have to agree to the auction house’s terms and conditions and set a reserve price for the minimum you are willing to accept.
Auction vs eBay
Since being founded in 1995, eBay has opened up the auction market to an enormous degree as people from all over the world are able to bid and buy all kinds of items.
While it may be tempting to list your rare item on eBay, there are reasons that you should still consider a traditional auction house.
For one, eBay has no in-house experts that can value and take care of your item. Instead, the ball is entirely in your court so you will have to value and list your item by yourself.
The risk of doing this is that you could be under-valuing your item, and so could potential bidders.
When selling your rare goods through a good, reputable auction house you have the peace of mind that they know what they are doing, and are trying to make the most money possible for you and for them.
This is not to say that you should entirely avoid eBay. If you are confident in your own valuation, and you want a wide audience to see your item then eBay provides a great alternative to traditional auction houses.
Online auction sites allow you to list anything you like and so could be a good alternative for selling your old valuables that aren’t quite rare enough to warrant a full trip to the auction house.
However, if you do go down this route, make sure you do your best to fend off scammers.
