The decision to sell a valuable watch can be driven by various reasons, such as financial need, an upgrade, or simply a desire to declutter your collection. Regardless of the reason, choosing the appropriate sales platform is key to a successful transaction. While watch auctions can sometimes result in record-breaking sales, they also have several drawbacks that sellers should be aware of before choosing this path.

Understanding Watch Auctions

Auctions operate on the premise of competitive bidding. In the case of watch auctions, the seller presents their timepiece to the auction house, which then estimates its value and includes it in an upcoming auction. Potential buyers, either present in person or online, then bid on the watch, and it is sold to the highest bidder.

⌚️ Want more information? Check our guide on what are watch auctions.

Watching auctions can present several advantages. Firstly, they can generate substantial exposure for the timepiece due to the broad audience that auctions attract. This, combined with the competitive nature of auctions, can potentially drive up the final price. Some rare or vintage watches have been known to fetch prices far beyond their estimates at auction.

Drawbacks Of Auctions

Unpredictability Of Final Selling Price

One of the main drawbacks of auctions is the unpredictability of the final selling price. While there are cases of watches selling for far more than expected, there are also many instances where watches sell for less than their estimated value or even fail to sell at all.

Time-Consuming Process

The auction process can be time-consuming. After consigning your watch, you may have to wait months for the auction to take place. Additionally, payment is usually not immediate and may take weeks to arrive after the auction.

Auction Fees & Commissions

Auction houses typically charge both buyers and seller’s fees. Sellers may have to pay a consignment fee, insurance, and a commission, which is a percentage of the final selling price. These fees can significantly reduce the net amount you receive from the sale.

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Limited Control Over the Sale

In an auction, sellers have limited control over the final selling price. The final bid price is determined by the bidders, not by the seller or the auction house.

Risk Of Not Selling

If the reserve price (the minimum price the seller is willing to accept) is not met, the watch will not be sold. This can result in wasted time and effort with no financial gain.

Watch Auction Case Studies

Successful Watch Auctions

A prime example of a successful auction sale is the Rolex Daytona once owned by Paul Newman that fetched $17.8 million at Phillips in 2017, far surpassing its estimate.

Less Successful Auction Sales

Conversely, there are examples where watches estimated to fetch high prices failed to sell. For instance, in 2019, a rare Patek Philippe with an estimated value of $1.25 million failed to find a buyer at a Sotheby’s auction.

Alternatives Options To Auctions

Selling To A Watch Dealer Like Watch Exchange

Here at The Watch Exchange, we value and buy luxury watches, offering immediate payment. Selling to a dealer can yield a higher net price, especially if the buyer is a watch enthusiast who values your specific model. 

Consignment Sales

Some specialty watch shops offer consignment sales, where they display and sell your watch in exchange for a percentage of the sale price. This offers the advantages of professional marketing and a targeted audience without the time pressure of an auction.

Online Platforms

Online platforms like eBay or watch-specific websites can reach a broad audience. These platforms often charge listing and transaction fees, but these may be less than auction house commissions.

Making The Right Choice

When choosing a selling method, consider factors like how quickly you need the money, your ability to handle logistics like marketing and shipping, and your comfort with negotiation. 

Understanding The Value Of Your Watch

A solid understanding of your watch’s value can help you decide on the best method to sell it and prevent you from accepting a lowball offer. You can obtain a watch appraisal from a reputable watch dealer or an online service.

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Is An Auction The Best Route For You?

While auctions can generate high exposure and potentially high sale prices, they also come with risks such as unpredictability of the final price, long waiting periods, high fees, and lack of control over the sale. 

The best method for selling your watch depends on your individual circumstances and priorities. Weigh the potential benefits against the drawbacks, and make an informed decision that best meets your needs.

Frequently Asked Questions

How can I ensure I get a fair price for my watch at auction?

One of the ways to ensure you get a fair price is by setting a reasonable reserve price. However, it’s important to keep in mind that too high a reserve can discourage bidders. 

Why might the final sale price at an auction be lower than expected?

This can happen due to market fluctuations, lack of interest, incorrect estimations, or the competition from other similar items being sold at the same time.

How reliable is the estimate provided by an auction house?

While auction houses often employ experts, estimates can still be off due to unpredictable market conditions and bidder behaviours. It’s always a good idea to get a second opinion.

 

What is the typical duration of an auction process, and how might this delay affect me?

Auctions may take weeks or even months to complete. This could tie up your asset and potentially delay access to your funds.

Is it better to sell my watch online or at an auction?

Both methods have pros and cons. Online sales can offer a wider audience and potentially quicker sales but might require more effort in terms of marketing and shipping. Auctions can create competition among bidders but come with the drawbacks outlined in this article.

⌚️ More information: Online vs In-Person Watch Auctions.

How can I avoid the fees associated with auction houses?

One way to avoid these fees is by selling directly to a private buyer or watch dealer. However, it’s important to remember that these methods come with their own challenges and potential drawbacks.

Why might an auction not be the best place to sell a lesser-known or niche brand watch?

Auctions often attract buyers looking for popular brands or specific models. A lesser-known or niche brand may not attract as much attention, potentially leading to lower bids.