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What Commission Does Sotheby's Charge Sellers

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When it comes to selling artwork or valuable collectibles at auction, it is crucial to understand the commission structure charged by auction houses. Sotheby's, one of the world's leading auction houses, follows a transparent commission system that sellers should be familiar with. In this article, we will delve deep into Sotheby's commission structure, including their seller's commission, commission split, additional fees, and minimum consignment values.

  1. Sotheby's Seller's Commission
  2. Commission Split
  3. Additional Performance Commission
  4. Other External Services
  5. Minimum Consignment Value
  6. Understanding Art Auction Commissions
  7. Tips for Sellers
  8. Conclusion

Sotheby's Seller's Commission

Sotheby's charges a commission to the consignor, which is deducted from the final sale price, also known as the hammer price. For most auctions, particularly in their Fine Arts division, Sotheby's standard seller's commission is set at 10% of the hammer price. This commission is agreed upon before the auction and serves as a compensation for the services provided by the auction house.

Commission Split

Sotheby's operates through different offices globally, each functioning independently. While there is no fixed commission split percentage applied universally, anecdotal sources suggest that a common commission split is 70/30. This means that the agent involved in the consignment receives 70% of the commission, and the office retains 30%. It is important to note that Sotheby's does implement a cap system, which sets a limit on the maximum amount an agent can earn from a single consignment.

Additional Performance Commission

In certain cases, if an item sells for over the agreed high estimate, Sotheby's may charge an additional 2% Performance Commission fee. This fee is in addition to the standard seller's commission and serves as an incentive for surpassing expectations. However, the Performance Commission is not applicable to all consignments and is subject to prior agreement between the consignor and Sotheby's. It is advisable to discuss any potential additional fees during the consignment process to avoid surprises later on.

Other External Services

Aside from the commissions mentioned above, consignors may also be responsible for other external services provided by Sotheby's. These services could include shipping, restoration, framing, and more. However, it is important to note that these charges would be discussed and agreed upon beforehand to ensure transparency and avoid any unexpected expenses. Sotheby's aims to provide a comprehensive service to consignors, offering these additional services to enhance the value of the consigned items.

Minimum Consignment Value

Sotheby's offers complimentary estimates for items that meet a minimum consignment value. The purpose of this minimum value requirement is to ensure efficient allocation of resources and attention to high-value items. The minimum consignment values vary depending on the location of the auction house. For example, in New York, the minimum consignment value is set at $5,000. In London, the minimum is £3,000, and in Hong Kong, it is HK$40,000. It is necessary to meet this requirement to benefit from Sotheby's complimentary estimation service.

Understanding Art Auction Commissions

In addition to Sotheby's commission structure, it is important to understand the general commission rates in the art auction market. Major auction houses, like Christie's or Sotheby's, typically charge a seller's commission of 15% of the hammer price. This commission covers the services provided by the auction house, such as cataloguing, marketing, and administrative costs. Moreover, consignors may also be responsible for other fees, including shipping, loss, damage, and liability insurance. It is important to note that these fees are negotiable and can vary based on consignment agreements.

Tips for Sellers

  1. Familiarize yourself with the commission structures of various auction houses to make an informed decision on where to consign your items.
  2. Discuss all potential fees, including additional performance commissions and external services, with the auction house before finalizing the consignment agreement.
  3. Consider the minimum consignment value requirement to ensure your items qualify for complimentary estimates and receive appropriate attention.
  4. Take into account the general commission rates in the art auction market to assess the competitiveness of the auction house.
  5. Carefully review the consignment agreement, paying attention to the commission split and any other terms that may affect the final proceeds from the sale.

Conclusion

Understanding the commission structure of auction houses is crucial for sellers who wish to maximize their returns while availing themselves of professional services. Sotheby's, with its transparent commission system, offers consignors a way to navigate the art market with confidence. By familiarizing yourself with Sotheby's commission rates, commission split, additional fees, and minimum consignment values, you can make informed decisions and ensure a successful consignment experience.

Sotheby's, a renowned auction house, charges sellers a commission for their services. This commission is paid by the consignor and is deducted from the final price that the item is sold for, known as the hammer price. In most auctions, including those organized by the Fine Arts division of Sotheby's, the standard commission rate for sellers is 10% of the hammer price. This means that if an artwork or valuable item is sold for $10,000, Sotheby's will receive $1,000 as commission from the seller. The commission covers the costs of marketing, promotion, auction logistics, and other services provided by the auction house. It is important for sellers to be aware of this commission fee when consigning their items for auction at Sotheby's.

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