color lithograph by Joan Miro.

An audience filled with tuxedos, diamonds and haute couture is the vision that the movies usually portray during an auction scene or sometimes it's an auctioneer sounding like he is speaking some kind of foreign rhythm as he is selling farm goods. Both of these scenarios are possible in the world of auctions. Before you run off to join the event, here are three things to consider.

1. Most reputable auction houses will describe the item for sale correctly, but the purchaser is ultimately responsible for examining the item and coming to their own conclusions. There are no refunds, exchanges or "ooops, I've changed my mind" unless you can prove that the auction house was negligent.  It is the bidder's responsibility to read the fine print and understand it. Review their payment options and if necessary, the shipping options. Many auction houses will not offer shipping but will refer the bidder to a shipping company.   

2. Understand the auction house's terminology. Again, this goes back to reading the fine print. One example: "Bears signature" does not mean that the artist signed it, just that it has a signature. The artist may or may not have signed it. The auction house is not trying to be sneaky, they have this terminology and definitions printed in the catalogues or on their websites.  

3. Buyer's premium is a percentage that the bidder will pay to the auction house based on the winning bid. This is a fee that the auction house charges bidders. Currently, buyer's premiums are ranging from 10% to 25%.  This means that if you are the successful bidder on an item at $100. when you go to pay for it, you will have and additional $10. to $25. added to your bid. Just keep this in mind when you are bidding. A $500. bid at a 25% buyer's premium will mean that you will actually be paying $625. for the item.

Auctions can be a fun way to add to your collection. Sometimes you can get a deal, other times you can pay too much. Either way it is a great learning experience.

You can see more details about the illustrated work of art at Joan Miro.