I was tracking down a few items on last week's (Nov 15, 2018) RR Music auction
In particular one item (vintage Who signatures (2X) and other 1960 UK bands
Opening bid $1000
Estimate $15000+ (too much IMO, even with 2 Moon autos)
Last I saw it was at $3300 +/-
Next day, when I was looking at final prices realized, it did not show up on the "sold items"
There were a few other items in the same situation
So does that mean that there is a "Reserve" price (the estimate?) which must be met? seems to me it had a high bid but did not sell, so either consignor high bid it (not allowed by their rules) or the House bought and they do not list those as sold items???
In my experience, a reserve price can be set, which is not necessarily tied to the estimate value
That is essentially what I thought. What mystifies me is that a lot of items "did not sell" even though they had bids beyond the opening minimum, but there was no mention of a reserve price. I suppose the AH has the right to bid as well (likely with 0% buyer premium) if the prices are worthy of an investment. I just had never paid attention to it before....
I am not aware of RR bidding on its own items. Iconic on the other hand is a different story...
Last year when RR was involved with that major lawsuit which I believe they won, there were whispers that they used their house account to bid up items , I do not think it was proven true , anyway I have been dealing with Elizabeth Otto and I find her to be very professional and honest with all my consignments and that’s been at least 8 years now
Reserves are rarely disclosed and they don't ethically have to. They're protection for the consignor, and reputable auction houses rarely set reserve so high that the lot doesn't sell for a reasonable high bid. In some cases, tho, the lot is unusual and/or rarely comes to market. The seller may not want to sell for less than $20,000 but the bidders think it's only worth $7,000.
I sold my Buddy Holly signed Chirping Crickets album at last week auction. I had a reserve of $2000. The estimate was $3000+ and the opening bid was $200. It sold for $3300 which was good but it was bid at $6200. RRAuction informed me shortly after this bid that there was a bidding error and the bidder meant to enter that as his maximum bid. They had every opportunity to bid this up but did not.
This was my second experience selling with RR and I walked away very satisfied and impressed with their integrity!
Well, that clarifies a few things
Opening bid is NOT reserve
It is possible to have a reserve above the opening bid
If the item is bid on, but does not reach the reserve, it is simply no sold ( would not show up as sold the day after the auction)
Reserve prices are not explicitly listed
AH "estimates" is not a meaningful value, maybe a psychological one to target the bidding to a certain price
Thanks for sharing
rr does have reserves on some itiems .use the estimates as a rough idea on the reserves that's the easiest way to tell
The reserve is imposed by the seller (and viewed as acceptable by the auction house). It is viewed as a floor in case the bidding is not consistent with estimates. In my case, I wanted this insurance because of my concern that the poor signature contrast might significantly restrict the market.
The auction house can impose a reserve fee to recognize that a lot may not sell and the auction house consequently loses marketing and listing costs. This is all subject to the negotiation at the time of consignment.
Having an opening bid much lower than any reserve is quite common. That's why you'll see some autographs on eBay with a starting bid of 9-cents but they sell for thousands.
But on Ebay it says theres a reserve and tells u when reserve is meet