Auction Representation

Auction representation as a service.

It makes sense why wealthy collectors or investor types with limited knowledge might might consider it. When big money is involved, big mistakes can be made if you don’t know what you’re doing…

What value, if any, do my fellow CT’ers feel it might bring to the collector with some years experience and a decent grasp on the market, area of interest, and price research tools?

Any thoughts, recommendations, or pitfalls from those with experience?

 

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It’s not just inexperienced newbies or wealthy folks who use auction representation. For one thing, there are details you can’t always see in a photo. Surface condition, including harsh cleaning, scratches, mild corrosion, etc. can be hidden in photos intentionally or unintentionally. In-hand eye appeal is often quite different than what one sees in the glamour shots taken under high intensity lighting.

It is often much cheaper and more practical to pay someone else a few percent to view the coins than to fly to the venue to view the coins in person.

 

I have used auction representation and it was a very positive experience. If anyone wants the name of the rep please send me a pm.

 

I have used auction representation a number of times. Overall I found the experience to be positive. I like Roman sestertii and they can be a serious problem especially if all you got is an image from a photograph and I can say in all honesty that having another pair of eyes on the coin can do nothing but help. Another factor to be considered is that your representative may actually have a pretty good idea of what it may take to buy a particular coin. However I will say that you need to communicate clearly to your representative what concerns you may have about a certain coin. Like @Orfew if someone is interested they can contact me. One of the coins I bought with representation.
Sestertius of Aelius 137 AD Obv, Head right bare. Rv. Salus seated left feeding snake which is rising from altar. RIC 1063 RIC II/3 2677 27.55 grms 31 mm Photo by W. Hansen

 

I have used the service once and glad I did, or the said coin wouldn't be mine, since the representative was attending the floor auction with me on the phone: there was no live bidding on the internet by that time and the underbidder would have won.


Francois II de Montpensier (1582-1592), Pistole- 1587
Atelier de Trévoux
+ FRANCIS . P . DOMBAR . D . MONTIS . M . Ecu de Bourbon couronné
+ DNS . ADIVT . ET . REDEM . MEVS . 1587 Croix feuillue
6.30 gr - 28 mm
2° exemplaire connu
Ref : Divo Dombes # 64, Mantellier # 37, Poey d'Avant # 5135, Friedberg # 124
Pédigree : Ex collection Couchard # 64 du 27/01/2006


Not something you would do for the everyday 100 buck purchase though

Q

 

That is a "Stunner" Q Now I want one in same quality for my collection......

 

Good idea. I hadn't thought of doing this.

 

Thanks @panzerman. This is the second example known to exist, the other one being inferior in quality. Unless another specimen pops up, you will have to wait for my heirs to selling this one

Q

 

At what price point for an individual coin (or for total anticipated expenditures at an auction) do people think it makes financial sense -- both for a buyer and a representative -- to use the services of such a person? Over $1,000? More than that? I've spent more than $1,000 on a coin only once, and it was a retail purchase. So if that's the criterion it's not likely that it would usually make sense for me to employ a representative.

Also: do these representatives get their compensation as a flat fee per coin, or as a percentage of the purchase price if you buy a coin? What if you don't buy any coins?

 

I have used representation twice, using the same agent both times and I must say that the coins I won through the representative are among the finest in my collection. 5% may seem like a large chunk for in-person representation but it was a significant value to me for examining the coins in hand as @savitale suggests. In one sale, I was after only one coin, but it was one of the highest value/cost coins in my collection so I was grateful to the agent for their examination and communication of that assessment. In the other instance representation was particularly helpful for me where a large number of lots were of interest to me. I generally can only afford a few coins out of say 20 of interest, so my agent advised me on the best of that 20 and/or whether my estimates and limits for the targets were realistic.

Years ago, I heard stories that agents will sometimes meet before the auction to identify overlaps of their client needs, and cite maximums that their clients intend to pay, agreeing not to compete if there is no chance of winning. I don't know if this still happens any more or or if this was just a story.

 

In my own experience, the coins I won through the agent were won at hammer prices in the mid 3-figure and low 4 figure price point. If no lots are won, there is no charge. Both auctions were relatively high profile events and the agent was planning to attend these auctions regardless of whether they represented me or not.

 

This is correct. If you don't buy anything, you don't pay them anything. A good agent will talk you out of buying coins which aren't nice enough, despite it not being in their best interest financially. When you find a good one, keep them close!

 

I once discovered that a dealer friend was the underbidder on a coin I bought. After that I had him represent me. Saved money and had an expert bidding on my behalf.

 

Make a rough estimation, how many of your coins did you get from major floor auctions? It's not that much a matter of value but rather if the agent is attending small auctions outside his/her hometown. It's also rather improbable that the agent will examine coins from esales or fixed price lists. Then you should ask yourself on how expert the agent is. Even if the agent is an expert, paying them a percentage of the hammer sounds like a CoI. The flat rate fee per coin report would seem more honest to me.

 

Personally, I've never used a representative for auctions. The vast majority of my auction purchases have been around $1,500 and lower. I'd hazard to guess that most of those are $500 and under. Now, if I were to bid on, say, a Syracuse decadrachm, that might be a situation where I might consider such a service.

 

I would consider it a little differently than an absolute number, considering also the dealer’s perspective. Let’s say he or she works on a 5% commission. On a $100 coin, they will gross $5. Obviously not worth their time. On a $1000 coin, they will gross $50. Maybe that’s worth the paperwork of dealing with you, but just barely. However if you are building a collection of one hundred $1000 coins, now that’s a relationship most dealers will want to have. And he or she will also handle that $100 coin for you.

 

In my experience, it is well worth it if you cannot view the coins in person and an agent is already visiting the lot viewing. The agent can also keep you from getting carried away.
What price point is worth it? 5% agency of $1,000 is $50. 1 bid increment could be $50. What is the value of a coin you regret purchasing because you had no one to talk about it in advance?

 

I can see a well connected dealer also knowing of things like unlisted/ yet to be listed coins, and doubts buzzing behind closed doors around authenticity of certain specimens or groups...

 

This is interesting. Since I routinely take orders from my son and best friend - both out of town - to buy coins at my club auction, can I call myself an auction representative? Maybe they should pay me a commission, even though they seldom go for coins over $50.

No, I better not, because then I'd probably have to pay the tax man.

 

I'm under the impression that this is a criminal offense. Does anyone know the specifics?