Learn How Bonhams Auction House Works

Understanding Bonhams Auction House: A Foundation

Bonhams is one of the world's largest international auction houses, operating since 1793. The company conducts auctions across multiple locations globally, including offices in London, New York, Los Angeles, Hong Kong, and Paris. As of recent reports, Bonhams handles approximately $300 million in sales annually across various categories of items.

The auction house specializes in fine art, antiques, jewelry, watches, decorative arts, wine, and collectibles. Unlike retail stores where prices are fixed, Bonhams operates on a bidding system where buyers compete to purchase items. The final price paid depends on how many people want an item and how much they're willing to spend.

Bonhams operates as a private company and is not a government agency or affiliated with any government body. It functions as a commercial business that brings together sellers (consignors) who want to sell items and buyers (bidders) who want to purchase them. The auction house earns money through buyer's premiums, which are fees added to the final sale price, typically ranging from 20% to 25% of the hammer price.

Understanding how Bonhams works requires learning several key components: how items enter the system, how valuations are determined, how bidding happens, and what costs buyers and sellers should expect. Each of these elements plays a role in the overall auction experience.

Practical Takeaway: Before engaging with Bonhams, recognize that it is a commercial auction business where prices are determined by competitive bidding, not fixed pricing. Research the specific department within Bonhams that handles your item category, as different departments have different expertise and auction schedules.

How Items Are Consigned and Valued at Bonhams

When someone wants to sell an item through Bonhams, they begin the consignment process. A consignor is the person or entity offering an item for sale. The first step typically involves contacting the appropriate department at Bonhams based on what they want to sell. For example, someone selling a painting would contact the Fine Art department, while someone selling jewelry would contact the Jewelry department.

Once contact is made, a specialist from Bonhams may request to view the item in person or examine photographs and documentation. This examination helps determine if the item is suitable for auction and what its estimated value might be. Bonhams specialists have extensive training and experience with specific categories. A jewelry specialist, for instance, understands diamond quality, precious metals, and market demand for different styles.

The valuation process considers several factors: the item's age, condition, provenance (documented ownership history), comparable recent sales of similar items, current market demand, and size. For a piece of fine art, specialists examine the artist's reputation, the painting's size, its condition, and recent auction results for works by the same artist. This research helps establish a pre-sale estimate—the range of money the house expects the item to bring at auction.

Not all items accepted for auction will attract the same level of interest. Some items may have estimated values of just a few hundred dollars, while others may be expected to sell for hundreds of thousands or millions. Bonhams typically accepts items they believe will sell, though this can vary by department and current market conditions. The consignor and Bonhams discuss terms, including the percentage of the sale price Bonhams keeps as commission and any reserve price—the minimum amount the seller will accept.

Practical Takeaway: If considering consigning an item to Bonhams, gather any documentation about its history, condition, and previous ownership. Contact the relevant department with clear photographs and honest descriptions. Understanding that valuations are estimates based on comparable sales will help set realistic expectations for what your item might sell for.

The Auction Catalog and Pre-Sale Process

Once items are accepted for an auction, Bonhams creates a catalog describing all the pieces that will be offered. These catalogs are increasingly available online, though printed versions are still produced for some sales. Each item in the catalog receives a lot number, detailed description, photograph, and estimated price range. The pre-sale estimate gives potential bidders an idea of what specialists think an item should bring, though actual sales prices frequently exceed or fall short of these estimates.

Bonhams catalogs contain significant information beyond basic descriptions. For art and antiques, catalogs typically include provenance information—the documented chain of ownership. They describe condition issues, restoration work, or damage. For jewelry and watches, they specify materials, weights, and technical specifications. For wine, they note the vintage, producer, bottle condition, and storage history. This detailed information helps buyers make informed decisions before bidding begins.

The pre-sale viewing period is a crucial phase in the auction process. Bonhams typically opens its galleries for several days before an auction so potential buyers can examine items in person. During viewing hours, items are displayed, sometimes in climate-controlled cases for sensitive materials like paintings or manuscripts. Potential bidders can ask questions, take photographs, and conduct their own assessments. This hands-on examination period is important because bidders want to verify condition and authenticity before committing money.

Bonhams also publishes online previews with high-resolution photographs that allow international buyers who cannot attend in person to evaluate items. Many auctions now feature video walkthroughs where specialists discuss highlighted lots. These tools make it possible for people worldwide to participate in Bonhams auctions without traveling to the physical location.

Practical Takeaway: Study the catalog thoroughly before an auction. Note the estimated price range, but recognize that estimates are not guarantees of final price. If possible, attend a pre-sale viewing to examine items directly. For online participation, request detailed photographs and clarification on condition if the catalog description raises questions.

Understanding the Bidding Process and Auction Mechanics

Bonhams auctions operate through a live bidding system led by an auctioneer—a trained professional who manages the competitive process. The auctioneer starts each lot at an opening bid, which is typically below the low estimate. Bidders then indicate their intention to bid higher through hand signals, paddle numbers, or electronic means. As bids increase, the auctioneer announces each successive bid level, encouraging higher offers until no one is willing to bid higher. The highest bidder wins, and the final bid amount is called the "hammer price."

Bidders register with Bonhams before an auction, which involves providing identification and payment information. In-person bidders receive a paddle with a number that they hold up to indicate bids. Telephone bidders speak with a Bonhams staff member who places bids on their behalf based on their instructions. Absentee bidders submit written or online bids indicating the maximum they will pay; Bonhams then bids on their behalf up to that maximum, competing against other bidders as needed.

The buyer's premium is a crucial cost that bidders must understand. This is a percentage fee added to the hammer price that all buyers must pay. At Bonhams, the buyer's premium is typically 20% of the hammer price up to a certain amount, then 12% above that amount. For example, if an item sells for $10,000 (the hammer price), the buyer pays the $10,000 plus a buyer's premium. Understanding this fee is essential because the total cost is significantly higher than the final bid amount.

Auctions at Bonhams follow established procedures designed to be fair to all bidders. If two people bid simultaneously, the auctioneer makes a judgment call about who bid first. If a dispute arises about a lot after it sells, Bonhams has procedures for addressing concerns, though these typically occur only in unusual circumstances. The entire auction process is designed to move efficiently through dozens or sometimes hundreds of lots during a single sale.

Practical Takeaway: If planning to bid at Bonhams, factor the buyer's premium into your budget when determining your maximum bid. Register early to understand the bidding mechanics specific to that auction format. Set a maximum price you will pay before the auction begins, and stick to it to avoid overpaying in the competitive excitement of live bidding.

Costs for Buyers and Sellers at Bonhams

Understanding the financial structure of a Bonhams auction is critical for both buyers and sellers. Buyers incur costs beyond the hammer price. The buyer's premium is the primary additional cost, as mentioned previously. Beyond that, buyers may owe sales tax, which varies by location.