Auction houses are good for selling valuable items such as antiques, art and jewelry or large collections. An auction house conducts a public sale at which items are sold to the highest bidder.

Auction houses provide a number of services, including appraisals.

Choose the house that's best for your particular item(s). Where it's located is not relevant.

For information about the following, click on the link to other sections of this article:

• Auction house services
• How to choose an auction house
• Tips for dealing with an auction house

NOTE: Before agreeing to sell an item through an auction house, first find out how much it is worth. To learn how, click here.

An auction house generally provides at least the following services::

• Generally gives you an in-home idea of what your items are worth.
• Allows you to set a minimum (a "reserve'). If a bidder doesn't meet the minimum, the item is returned to you.
• Takes care of transporting your items to the auction house, advertising and otherwise promoting the sale, and conducting the actual sale.
• Charges from 5 to 25% of the sale price for making the sale.
• May give you a loan against the eventual sale if there is a lag between the time you agree to sell an item and the sale date.

When choosing an auction house, consider:

• The reputation of the auction house.
• Whether the auction specializes in the type of items you want to sell. This is important to maximize price.
• The type of buyers that generally attend the house's auctions. For example, you would not want to auction world-class art at a small town auction house.
• Other items that will be included in the auction. You do not want to be part of a sale in which your items are likely to be the most expensive or incompatible with the rest of the items in the sale. It's best to be in a sale that attracts bidders interested in the types of items you are selling.
• How the auction house will advertise the sale and whether or not they print a catalogue. If there is a catalogue, will there be a photograph of your item?
• Whether or not the auction house picks-up the items from you.
• The fees. You may be able to negotiate fees, particularly if you have a lot of items or the gallery wants the items for a particular sale.
• Whether the auctioneer or you carry insurance on the property while in the possession of the auction house. If your insurance is to cover, call your broker to be sure it does.

NOTE: An auction house does not to be near you. Auction houses in large metropolitan areas are more likely to attract buyers than smaller, local houses. The auction house can see your item in photographs and over the internet through such services as Skype. 

If you decide to sell an item through an auction house, consider the following tip:

• Only consider auction houses with a good reputation. 
• Check to see whether you can do as well or better by doing an online auction. For example, on a large site such as eBay.com or a smaller site which may specialize in the types of items you are selling.
• Think about whether to set a price that allows people to purchase the item without going through an actual auction. You may not get as much money as you would through an auction, but the operation word is "may" since there is never an assurance of how much will be bid at auction. 
• Ask about what other items wll be included in the sale. For example, if you are selling a painting by a particular artist, is the auction all of his or her paintings, or of that particular school of painters?  The more like items, the more likely that there will be a variety of collectors present. (The more collectors who are present, the more the bidding competition).
• Promotion
  • Find out about what the auction house will do to promote the sale in which your item will be listed.
  • If you are selling an expensive item, what promotion will the auction house do about your item?
  • How much, if anything, will you be charged for promotion? For example, to make color reproductions of the item.
• What date will the auction occur? Is that a good time for a sale?
• Consider setting a minimum price ("reserve"). If the bidders do not bid the minimum, the item will be returned to you. Check to see what the charge will be, if any, in the event the minimum is not satisfied.
• Be sure the items are insured from the moment they leave your possession until they are either sold or returned to you. If the items will be insured by the auction house, check to see exactly what coverage is being provided and how much you will be charged.
• Read the fine print - particularly about charges.