Auction Vs Private Sale
Whatever you are looking to sell, from houses to whisky, and pocket watches to fine art prints, the decision between auction and private sale ultimately comes down to a balance of speed, control, risk, and potential return.
While this question is often asked in the context of property, the same principles apply when selling other valuable assets, including whisky bottles and collections.
For collectable items, auctions are suited to objects that have a subjective value or are of low commercial value where a defined timeline and reliable sale are required.
For property too, auctions are often chosen for three key reasons: speed, certainty, and competition.
An auction provides a fixed timeline, meaning a sale can complete more quickly than a private listing. It also offers greater certainty, as once the hammer falls, the sale is legally binding. And in the right circumstances with the correct marketing and auctioneer, competitive bidding can push the final price beyond expectations.
However, auctions are not always the best option. They can carry risk if demand is limited, and the final price is not guaranteed.
Private sales are well suited to items where direct comparison with previous sales can be made (similar items or houses on the same street in similar condition), or things that have an objective value (like precious metals for example).
Is Auction or Private Sale Best?
The Pros and Cons of Selling at Auction
Whether the “item” you’re looking to sell is a house, bottle of whisky, pocket watch or fine art print, these are things to be aware of when you are considering whether to sell at auction:
Positives
+ Items are marketed globally using online auction platforms like the-saleroom.com
+ There is no limit to what the item can make
+ Reserves can be arranged to ensure your items do not sell below a certain figure
+ Sales at auction are legally binding and so guaranteed once the hammer falls
Negatives
– Auction houses charge both the seller and buyer a commission, so the difference between what the buyer pays and what you receive can be up to 50%
– If an auction house misdescribes your items then they are likely to be undersold
– If the auction house does not have access to the right clientele then your item may sell for considerably less than it should
– Sales are not instant and there can still be a delay between sending the item to auction and receiving payment following the sale
As Featured In:
Picking the right auction is an important part of a sale: By entering this rare 16th century carbine into a very specialist sale we were able to sell it for £21,000 – a local auction house had quoted the client £1,000-1,500.
Using our network of whisky buyers we are often able to get the best price for bottles of whisky like these Macallan Private Eye bottles. By selling privately sellers get 90% of the buyer’s money rather than 50-85% at auction.
The Pros and Cons of Selling Privately
When looking to sell privately the pros and cons are more dependent on the item you are looking to sell.
Positives
+ You set and accept the price the item is sold for
+ Selling privately usually means only the seller pays commission. For collectables that can be up to 40% more than if the items were sold at auction
+ For collectables, once a buyer is found, payment from private sale can be much faster than auction
+ Buyers for certain collectables may pay more for your items if they have not been exposed at auction
Negatives
– Once a sale price is agreed it is fixed, unlike at auction where ‘auction fever’ can grip buyers and drive up prices
– Private sales have no fixed timeline for finding a buyer and completion
Independent Advice, Tailored to You
At Mark Littler Ltd. we use our industry expertise sell your items strategically either in a private sale or by auction.
We help you achieve the best price for your item by choosing a saleroom with the relevant expertise and the right target market. Alternatively, we can broker a private sale with our network of national and international contacts.
Contact us today for independent, impartial advice on how best to sell your item.
Sell Your Whisky Today
Please use the form below to submit images of your bottle and receive a free, no-obligation valuation from a specialist auctioneer. We will also actively seek the highest offer from our network of private collectors to help you sell your whisky.
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