Art Auction Glossary
A comprehensive guide to the terminology used across Art Collector IQ and the broader auction market.
A
Artist's Resale Right (ARR / Droit de Suite)
The legal right of an artist (or their estate) to receive a royalty each time their work is resold through an auction house or gallery for €1,000 or above. Applicable in the EU, UK, and other jurisdictions. Typically 4% on the first €50,000, with a sliding scale thereafter. This cost is borne by the seller in most markets but may affect the net proceeds and therefore the consignment decision.
Asking Price
The price set by a gallery, dealer, or private seller for an artwork on the primary or secondary market. Unlike auction estimates, the asking price is a fixed figure subject to negotiation. In Art Collector IQ's Artwork Valuation, you can enter an asking price to receive an assessment of whether it represents good value relative to the Fair Market Value range.
Attribution
The degree of certainty with which a work is assigned to an artist. Auction catalogues use precise language: "By [Artist]" indicates full certainty; "Attributed to" means probably by the artist; "Studio of" indicates made in the artist's studio; "Circle of" means by an unknown hand closely associated with the artist; "Follower of" means in the artist's style but not necessarily contemporaneous; "After" means a copy of a known work.
B
Bought In
A lot that fails to sell at auction because bidding did not reach the reserve price. The lot is "bought in" by the auction house on behalf of the seller. Bought-in lots are not publicly recorded as sales, and the buy-in rate (inverse of sell-through rate) is a key indicator of market softness. In Art Collector IQ, lots with a recorded price of $0 are classified as bought in.
Buyer's Premium
A fee charged by the auction house to the buyer, calculated as a percentage of the hammer price and added on top. Premium structures are tiered — for example, Christie's may charge 26% on the first $1 million, 20% up to $6 million, and 14.5% thereafter. The buyer's premium is a significant cost that Art Collector IQ's Auction Advisor calculates automatically.
C
Catalogue Raisonné
A comprehensive, scholarly listing of all known works by an artist. Inclusion in a catalogue raisonné strengthens provenance and authenticity, often increasing an artwork's market value. Abbreviated as "CR" in auction catalogues, typically referenced with the author's name and entry number.
Comparable (Comp)
A previously sold artwork used as a reference point for valuing another work. Good comparables share similarities in artist, medium, size, period, subject, and condition. Art Collector IQ's tools select comparables from a proprietary database of auction records and score them for similarity and market relevance.
Condition Report
A detailed description of an artwork's physical state, noting any damage, restoration, or deterioration. Condition significantly affects value — a work in excellent condition may sell for multiples of one in poor condition. Condition reports are typically available from auction houses upon request before a sale.
Confidence Level
In Art Collector IQ's Artwork Valuation, the confidence level (High, Medium, or Low) indicates how reliable the valuation estimate is, based on the number of comparables, data consistency, and medium match. A higher confidence level means the comparable data strongly supports the estimated range.
E
Estimate (Pre-Sale Estimate)
The price range published by the auction house in advance of the sale, reflecting the specialist's expectation of the likely hammer price. Estimates are expressed as a low and high figure (e.g., £50,000–£70,000). The median estimate is the midpoint of this range.
Exhibited
Refers to the display history of an artwork in exhibitions, which strengthens provenance and can add to value. An artwork exhibited at major museums or galleries carries more prestige and verifiability, which the market typically rewards.
F
Fair Market Value (FMV)
The price at which a willing buyer and a willing seller would agree to transact, neither being under compulsion and both having reasonable knowledge of the relevant facts. FMV is the standard of value used in Art Collector IQ's Artwork Valuation and is the benchmark for most art appraisals, estate valuations, and insurance assessments.
G
Guaranteed Property
A lot for which the auction house has guaranteed a minimum price to the seller, reducing the seller's risk. If the lot fails to sell or sells below the guarantee, the auction house (or a third-party guarantor) must cover the difference. Guaranteed lots are flagged in the catalogue and on Art Collector IQ with special notices.
H
Hammer Price
The final bid price at which a lot is sold at auction, before the buyer's premium and any other fees are added. The hammer price is the most commonly cited figure in auction results and is the primary data point in Art Collector IQ's database. All comparables, averages, and market analysis reference hammer prices unless otherwise stated.
Hammer Ratio
The relationship between the hammer price and the median pre-sale estimate. A hammer ratio of 1.0 means the lot sold at exactly the median estimate. Above 1.0 indicates outperformance; below 1.0 indicates underperformance. Art Collector IQ displays both the simple average and weighted average hammer ratio for each artist.
I
Irrevocable Bid
A bid placed by a third party before the auction, guaranteeing that the lot will sell at or above a certain price. The irrevocable bidder may receive a financing fee or share of the upside. These arrangements are disclosed in the catalogue and represent a form of financial engineering in the auction market.
L
Landed Cost
The total cost of acquiring an artwork including the hammer price, buyer's premium, applicable taxes (VAT, import duty, sales tax), Artist's Resale Right, shipping, insurance, and any import/customs charges. Art Collector IQ's Auction Advisor calculates landed cost when you specify a destination city.
Lot
An individual item or group of items offered for sale at an auction. Each lot has a unique lot number and is catalogued with a description, condition notes, provenance, and pre-sale estimate.
M
Materials / Medium
The substances or techniques used to create an artwork. Common mediums include oil on canvas, acrylic on panel, screenprint, lithograph, watercolour, bronze, and mixed media. Medium is a critical factor in valuation — works on canvas by the same artist typically sell for more than works on paper.
Median Estimate
The midpoint of the pre-sale estimate range given by the auction house. For a lot estimated at £50,000–£100,000, the median estimate is £75,000. Art Collector IQ uses the median estimate as the baseline for calculating hammer ratios and percent deviation.
P
Percent Deviation (% of Estimate)
Shows how the hammer price compares to the median estimate, expressed as a percentage. 100% means the lot sold at exactly the median estimate. 200% means it sold for double. 50% means it sold for half. This metric is a key indicator of whether demand exceeded, met, or fell short of expectations.
PPSCM (Price Per Square Centimetre)
A normalised pricing metric calculated as hammer price divided by the artwork's area in square centimetres. PPSCM allows meaningful comparison between works of different sizes by the same artist. It is the foundation of Art Collector IQ's Artwork Valuation methodology — the baseline value is computed as the subject's area multiplied by the median PPSCM from comparable sales.
Provenance
The documented history of ownership of a particular artwork, tracing the chain of custody from the artist's studio to the present owner. Strong provenance (e.g., directly from the artist's estate, or with major collection and exhibition history) adds value and confidence. Gaps in provenance may raise questions about authenticity or legality.
R
Reserve
The minimum price the seller is willing to accept for a lot, agreed with the auction house before the sale and not disclosed to bidders. If bidding does not reach the reserve, the lot is bought in. Reserves are typically set at or below the low estimate.
S
Sell-Through Rate (STR)
The percentage of lots offered at auction that successfully sell. Calculated as: (lots sold ÷ total lots offered) × 100. Rates above 80% are considered strong, indicating healthy demand. Below 60% suggests market weakness. Art Collector IQ calculates STR at the artist level, auction level, and across the whole market.
Special Notice
Additional information or terms regarding a specific lot, which can include details about guarantees, reserves, irrevocable bids, export restrictions, endangered species materials, or Artist's Resale Right applicability. Always read special notices before bidding.
T
Third-Party Guarantee
An arrangement where a third party (typically a collector, dealer, or investor) guarantees to bid on a lot at a pre-agreed minimum price, offering financial assurance to both the seller and the auction house. In return, the guarantor typically receives a financing fee and/or a share of any upside above the guaranteed price. Disclosed in the catalogue.
U
Unique Work
A one-of-a-kind artwork (as opposed to an editioned print or multiple). Unique works — such as paintings, drawings, and singular sculptures — typically command higher prices than multiples by the same artist. Art Collector IQ's tools classify each comparable as "Unique original," "Editioned print/multiple," or "Open edition" to ensure like-for-like comparison.
V
VAT (Value Added Tax)
A consumption tax applied in the EU and UK to goods and services, including artwork sales. The VAT treatment of art auctions is complex: most lots are sold under the "margin scheme" (VAT on the buyer's premium only), but some are subject to standard VAT on both the hammer price and premium. Import VAT may also apply to works entering the EU from outside. Art Collector IQ's Auction Advisor models VAT scenarios based on auction location.
W
Withdrawn
A lot removed from the auction before bidding takes place. Lots may be withdrawn due to authenticity concerns, legal disputes, seller changes of mind, or pre-sale private transactions. Withdrawn lots are not counted in sell-through rate calculations.