How do Auction houses calculate estimated values on works?

Any details?

Is there a industry standard or is each house different?

Thanks

How do Auction houses calculate estimated values on works?

Any details?

Is there a industry standard or is each house different?

Thanks

I’m not sure if there is an industry standard, but I guess they take all the information available from other sales and auctions and base their prices on that. A good estimate is also low enough to make people bid, but high enough to seem right.

A common mistake by bad auction houses are too high estimates that scare off potential buyers. Also, results that beats the estimate is always preferable to sales below.

I believe each house is different. I know a small auction house that calculate estimated value on a case to case basis, mainly depending on historical prices.

Low estimates are prevalent to lure in buyers, no? Would be interesting to see if auction results are consistently closer to the high estimate… Might be a bit tricky to make a statistic of, as you also would have to consider all the lots that didnt sell. I know that real estate agents in my area consistently price 10% below marketprice.

Of course they want to lure in the buyers. if you boil it down that’s the job of the estimate IMHO.