Christies Auction Fees at 25% + tax ?

[Curran]

Dear List,

 

I picked up a copy of the latest NYC Christies auction for Sept 18th, 2007.

 

After reading through it a few times, I checked the legalese in back. I have not done this in a year or two. Previously the buyer premium was +20%, but there in the fineprint was buyer premium at +25%.

 

So is it now +33.375% (25% + NY sales tax)? Harsh.... It would scare me away as a potential bidder, and disinclines me to give anything to Christies to sell.

 

Anyone know when the jump up occured? I'm curious to know, since Christies sales seem to have dropped a bit as of late last year.

 

Curran

[Curran]

I spoke to Christies today.

 

Per the phone call:

 

P. 318 Buyer's premium of +20% (This page is wrong).

P. 320 Buyer's premium of +25% (This page is correct).

 

So it is now +33.375 % on top of hammer price.

 

Curran

[Brian]

That is a "bit" steep in my opinion. Together with the sellers fee, they pocket a whole bunch of change.

Hmm. So is the tax payable even to buyers from other states and countries?

I wouldn't expect this from someone as highly regarded as Christies. If their sale attendances drop, they only have themselves to blade, and I can't see many sellers getting decent prices for their items. No-one wins here. *sigh*

 

Chaos

[nagamaki - Franco]

Hmm. So is the tax payable even to buyers from other states and countries?

No-one wins here. *sigh*

 

Chaos

 

Taxes are collected depending on where the owner resides and delivery is taken, more games.

 

Christie's wins coming and going.

[Gabriel L]

If their sale attendances drop, they only have themselves to blade

Well, I don't know, seppuku seems a bit extreme a reaction. :D

 

Seriously though, I agree (although it's easy for any buyer to agree that rising prices are bad) - what necessitates a bump like this?

[Curran]

I don't know what justifies the bump from +20% to +25%. Per my short conversation on the phone, the woman said roughly that it was their decision after having re-assessed the North American market.

 

I think it is _only_ on the first $20,000 you buy. In some accountant's mind, that just means an extra $1000 out of Joe Schmoe's pocket and the rich don't care. Get that short term revenue up! Not their fault if they drive away more educated buyers.

 

I assume this is all New York or North America auctions. Not just the Japanese/Korean one. But it does seem another nail in the coffin for Nihonto from the New York auction house. This can mean that the bidders will be more doctors, lawyers, finance gurus that know nothing about what they are buying; as the collectors like myself just are going to find it masochistic to try and buy from Christies.

Having worked with a seller on a previous auction and seeing Christies screw up the photography, descriptions, care, etc.... I'd hesitate to sell throught them. If the items don't sell, they still skin the seller for shipping, photography, etc. You really stick your head in the lion's jaw and ask it not to bite too hard.

 

Does Sothebys (forgive the spelling?) still have a Japanese sale in New York? I knew they took a bath on the Sept. 2001 auction since 9/11 effectively made sure no one was there to bid.

 

Christies probably views it as "sink or swim". Nihonto is a tight market and if the Japanese items can't absorb an extra 5%... they will cancel Japanese auctions and have one more day for Impressionist or Modern art auctions.

I hope Japanese auctions manage to hang around for a few more years, but not sure I will bid when there are better avenues than lining Christies' pockets with extra gold.

 

It was just chance I read the right fineprint on the correct page. Otherwise I wouldn't have known until the checkout window. I don't think they've done anything to alert people to the extra 5%, so it should sneak up on a lot of people.

[paulb]

Curran,

regarding Southebys in the UK, I understand they atre no longer doing Japanese auctions. Christies have anounced that they will only accept lots with a minimum value (I think it is 3000 UKP, but not sure)

This looks a lot like accountants taking the British airways attitude of only wanting to concentrate at the top end of the market and ignore the great unwashed masses (people like me!!)

I think the lower end has really been captured by internet sites and auctions and the big auction houses feel it costs as much to sell $100 lot as it does a $5000.

The net result is that the average collector will loose out and the auction houses will increasingly pander to waht they see as the elite.

[Curran]

I've been sticking to fittings these days, but that 3000 UKP barrier is going to mean few tsubas, menuki, f/k in the auctions.

 

I'm also curious what it will mean for some of the items like the Japanese prints. Will they just slowly kill off their Japanese departments?

 

The interesting thing is many of the banks and investment firms are moving back in Japan real-estate and other avenues as it becomes an increasing trade partner with China & India (tariffs dropping) and finally betting on somewhat of a Japanese resurgence in the next 5 to 10 years. They finally burn through 20 years of bust and the bust-generation children come of age while the post war generation retires.

Japan revival faces a lot of headwind (aging population, etc), but it will be funny if the auction houses zig away from the market, only to find demand increases.

 

Who knows? The Asia department shift may just be selling new wealth China, just putting Japan kept on the back burner. But they have price a lot of us out of wanting to buy from them, and the photo quality / description accuracy so erratic that I am not sure I would bother with some of the catalogs.

[Bungo]

Christie's und Sotheby's................ social events where one is expected to be seen. No shorts, bare feet like E-Bay.

Hence.................. the high commissions.

When wearing tux, it's " unbecoming " to quibble.

 

milt the ronin