Auction glossaryConsignment Auction: How Selling on Consignment Works
A consignment auction is a sale where owners hand their items to an auction house, which sells them on their behalf and keeps a commission. The owner, called the consignor, still owns the items until they sell, then receives the hammer price minus the commission and any agreed fees.
How does a consignment auction work?
Most consignments follow the same four steps.
- You and the house agree on the items, the commission and any reserve, usually in a written consignment agreement.
- The house catalogs, photographs and lists the items in a sale.
- Bidders compete, and each lot sells at its hammer price.
- After buyers pay, the house sends you a settlement with your proceeds.
How much does the seller get from a consignment auction?
Say your tractor sells for a $12,000 hammer price on a 10% commission. The house keeps $1,200 and you receive $10,800, less any agreed charges such as hauling. The buyer's premium is paid by the buyer to the house, so it doesn't come out of your share.
Consignment suits estates, farm and equipment sales, and anyone with more items than time. On Auktia, winners pay the seller (auction house) directly once the auction closes. Our guide to selling items at auction covers what to ask before you sign.
Questions people ask
What is a consignor?
The consignor is the owner who places items with the auction house to sell. The house acts as their agent.
Is a consignment auction the same as a consignment shop?
Both sell your items for a cut, but a shop sets a fixed price and waits for a buyer, while an auction sets a date and lets bidding find the price.