The saleroom has a vocabulary of its own, and most first-time bidders quietly nod along rather than ask what the words mean. They are worth knowing precisely, because each one tells you something concrete about what you are committing to. Here is the language of an auction, decoded.
Estimate
The estimate is a price range — say $3,000 to $5,000 — that the specialists expect a lot to sell within. It is a considered opinion based on condition, rarity and recent results, not a promise. A realistic estimate attracts bidders; lots frequently open below the low estimate and, for desirable pieces, close above the high one. Read it as a guide to where the conversation will start, not where it will end.
Reserve
The reserve is the confidential minimum the seller will accept. It is never published and is always at or below the low estimate. If bidding does not reach the reserve, the lot goes unsold — marked reserve not met — and the seller keeps it. This is why you will occasionally see a lot close with bids on it and still not sell: the hammer reached a real price, just not the seller’s private floor.
The estimate is public guidance; the reserve is a private floor. Bidding lives in the space between the two.
Hammer price and buyer’s premium
The hammer price is the winning bid — the figure the auctioneer calls as the gavel falls. It is not, however, the figure you pay. On top sits the buyer’s premium, a percentage added to the hammer that covers the cost of running the sale. A $4,000 hammer with a 25% premium costs $5,000 before any taxes or shipping. Always read the premium in the conditions of sale before you set your maximum — it is the single most overlooked line in any catalogue.
The terms at a glance
- Estimate — the expected price range; public guidance only.
- Reserve — the seller’s confidential minimum; unpublished.
- Hammer price — the winning bid when the gavel falls.
- Buyer’s premium — a percentage added to the hammer; your real cost is hammer plus premium.
- Provenance — the documented ownership history; it protects both value and confidence.
Learn these five terms and the saleroom stops being intimidating. Every lot, in every category, is described in the same honest language — once you can read it, you can bid with confidence.
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