The document defines 15 essential terms used when art auctioning, including: appraisal, as is, auctioneer, bid, bought in, buyer's premium, conditions report, consignor, exhibition history, hammer price, increment, protecting a market, reserve, sell through rate, and white glove sale. It provides a brief 1-2 sentence definition for each term to concisely explain their meaning in the context of art auctions.

1. 15 ESSENTIAL TERMS TO
KNOW WHEN ART
AUCTIONING
Etienne Kiss-Borlase

2. Appraisal- The market value
assigned to an item by the
house specialists.

3. As is- The item is sold in its
current condition, with
imperfections and faults at
the time of auction.

4. Auctioneer- The conductor of
the auction, usually a trained
professional, can be a man or
woman. They are usually
known for their ability to
fetch outstanding prices for
items, even in the stingiest of
crowds. Auctioneer’s use
many different styles that are
catered to specific
demographics.

5. Bid- The amount a prospective
buyer signals he/she would
like to pay for the item
currently being auctioned.

6. Bought In- Art that fails to
sell and gets returned to the
consignor.

7. Buyer’s Premium- The fee that
the auction house adds to the
hammer price of an item,
usually a percentage from 10-
20%.

8. Conditions Report-
Description of the item up for
auction, usually prepared by a
specialist.

9. Consignor- The party
responsible for putting the
piece up for auction. Can
stem from the three D’s
known as Divorce, Death and
or Debt.

10. Exhibition History- A complete
history of all exhibitions in
which an item as appeared.
Exhibit history may affect the
value of the item.

11. Hammer Price- The final and
winning bid, gets its name
from the gavel when it comes
down upon completion of an
auction.

12. Increment- The amount by
which the next bid must
surpass the previous bid.

13. Protecting a Market- When a
dealer places a bid on behalf
of an artist to assure that the
market value of an artist does
not fall. Major artists usually
expect this type of financial
protection from dealers.

14. Reserve- The minimum price
that a consignor will allow the
item to be sold for. If the
reserve is not met then the
work will be bought in.

15. Sell Through Rate- The
percentage compiled to assess
how the auction performed.
Rates below 75% are
considered to be
underperforming.

16. White Glove Sale- An auction
in with a 100% sell through
rate. A party usually ensues
after.

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