Glossary

Exhibited

  • Definition: Refers to the display history of an artwork in exhibitions, which can add to its provenance and value.
  • Example: An artwork that has been exhibited in major galleries or museums.

Guaranteed Property

  • Definition: A lot for which the auction house has guaranteed a minimum price to the seller, reducing the risk for the seller.
  • Example: A high-value artwork may be offered with a guarantee to encourage consignors.

Hammer Price

  • Definition: The final bid price at which a lot is sold at auction, not including the buyer's premium and any other fees.
  • Example: Marc Chagall’s Clown à la corbeille had a hammer price of £180,000.

Hammer Ratio

  • Definition: Represents the relationship between the hammer price and the average pre-sale auction estimate. A higher hammer ratio indicates better performance relative to the presale estimate.
  • Example: A lot with a hammer ratio of 2.2 sold for more than double its average pre-sale estimate.

Irrevocable Bid

  • Definition: A bid placed by a third party before the auction, guaranteeing that the lot will sell at or above a certain price.
  • Example: A third party agrees to bid a specific amount to ensure the sale of a lot.

Lot

  • Definition: An individual item or group of items offered for sale at an auction.
  • Example: Each piece of artwork in the auction is referred to as a lot.

Materials

  • Definition: The substances or mediums used to create an artwork.
  • Example: Oil on canvas, pastel, gouache, ink.

Median Estimate

  • Definition: The middle value in the range of pre-sale estimates given by the auction house for a lot.
  • Example: A lot estimated at £50,000 to £100,000 has a median estimate of £75,000.

Percentage of Median Estimate

  • Definition: Shows how the hammer price of a lot compares to its median estimate, indicating whether the lot met, exceeded, or underperformed expectations.
  • Example: A lot with a hammer price of £30,000 and a median estimate of £10,000 has a percentage of median estimate of 300%. Alternatively, if a lot with has a percentage of median estimate of 100%, it has met auction expectations.

Provenance

  • Definition: The history of ownership of a particular artwork, often used to verify authenticity and value.
  • Example: An artwork directly from the artist’s estate has strong provenance.

Reserve

  • Definition: The minimum price the seller is willing to accept for a lot, not disclosed to the bidders.
  • Example: If bidding does not reach the reserve price, the lot will not be sold.

Sell-Through Rate

  • Definition: An assessment of an auction’s performance after bidding has closed. It calculates the rate by lot (lots that sold/total lots offered) and by value (total value achieved/overall estimated value of sale). Rates above 80% are considered successful.
  • Example: An auction with 53 lots offered and all 53 sold has a 100% sell-through rate.

Special Notice

  • Definition: Additional information or terms regarding a specific lot, which can include details about guarantees, reserves, and irrevocable bids.
  • Example: A special notice might state that a lot is guaranteed property.

Third Party Guarantee

  • Definition: An arrangement where a third party guarantees to bid on a lot, offering financial assurance to the seller.
  • Example: A collector or investor guarantees to bid on a lot to help secure its sale.