Understanding Wine Auction Reserve Price and Estimates
Updated
Understanding the difference between a wine auction estimate and a wine auction reserve price is crucial for effective bidding. An estimate is a public price range that auction houses believe a lot may sell for. They base it on factors like condition, rarity, quality, provenance, and recent auction results for similar property. A reserve price, in contrast, is a confidential minimum amount agreed upon with the consignor, below which a lot will not be sold. While estimates are public guidance, the reserve is a private threshold that directly influences whether a lot sells. The hammer price is the final bid the auctioneer accepts. It must meet or exceed the reserve for the sale to complete.
How are auction estimates determined?
Auction estimates provide a price range reflecting the anticipated hammer price of a lot. Christie's states that it bases estimates on the condition, rarity, quality, and provenance of the lots, as well as on prices recently paid at auction for similar property. Zachys adds that estimates are also informed by past sales and market research. Zachys determines these estimates in advance of the sale and may revise them. Neither you nor anyone else may rely on any estimates as a prediction or guarantee of the actual selling price of a lot, as Christie's notes. The same holds for its value for any other purpose. Estimates do not include the buyer's premium or any applicable taxes, according to Christie's. For insights into how estimates compare to actual realised prices, you can explore our market index.
What is a reserve price and how does it affect bidding?
The reserve price is the confidential minimum amount below which an auction house will not sell a lot. Christie's defines the reserve as "the confidential amount below which we will not sell a lot." Zachys states that lots may carry a confidential reserve, which is the minimum price agreed upon with the consignor. That reserve is subject to change. iDealwine also notes that the consignor can set a reserve price, which is the minimum price the goods can be sold at.
The reserve cannot be more than the lot's low estimate, according to Christie's. However, if a lot is subject to a third-party guarantee and an irrevocable bid exceeds the printed low estimate, Christie's sets the reserve at the amount of the irrevocable bid.
Auctioneers play a specific role in relation to the reserve. Christie's states that the auctioneer may, at their sole option, bid on behalf of the seller up to, but not including, the amount of the reserve. Zachys similarly notes that the auctioneer may execute bids on behalf of the consignor's reserve. Under no circumstances will the auctioneer place any bid on behalf of the consignor at or above the reserve. Both Christie's and Zachys confirm that the auctioneer will not identify these as bids made on behalf of the seller or consignor.
Christie's typically identifies lots offered without a reserve with a specific symbol, such as a "•" next to the lot number. For these lots, Christie's states the auctioneer will generally decide to open the bidding at 50% of the low estimate. iDealwine allows consignors to specifically request no reserve price on their property. In that case the starting price will be set at €1. If a no-reserve lot sells below the low presale estimate, iDealwine states it will accept no reclamation from the seller. WineBid's automated pricing uses a proprietary algorithm based on auction data. It sets reserves in line with market trends, adjusting weekly. Wines automatically roll into the next auction if unsold.
If bidding on a lot does not reach its reserve price, the auctioneer may withdraw the lot from sale. Upon doing so, and prior to commencing bidding on the next lot, the auctioneer will announce that the lot has been "passed," "bought in," or a similar term, according to Zachys. iDealwine automatically reoffers unsold wines unless the consignor decides otherwise. After three consecutive auctions, iDealwine automatically reduces the reserve price of unsold wines by 10%. If still unsold after six auctions, iDealwine reduces the reserve price by another 10%, applied to the already-lowered reserve price.
What is the buyer's premium and other costs?
The buyer's premium is a fee added to the hammer price of each lot, payable by the buyer. This premium contributes to the costs of conducting the auction.
Here are examples of buyer's premium rates for wine:
| Auction House | Location/Category | Buyer's Premium Rate | Additional Notes |
|---|---|---|---|
| Sotheby's | Global Wines & Spirits | 24% of hammer price | Plus 1% Overhead Premium on all hammer prices |
| Sotheby's | New York / UAE / KSA | 28% up to $2,000,000; 22% between $2,000,000 and $8,000,000; 15% above $8,000,000 | Rates exclude local taxes and artist resale rates |
| Sotheby's | London | 28% up to £1,500,000; 22% between £1,500,000 and £6,000,000; 15% above £6,000,000 | Rates exclude local taxes and artist resale rates |
| Christie's | London Wine, Spirits and Cigars | 25% of hammer price | VAT is payable on the premium at the applicable rate |
| Bonhams | UK Wine and Whisky | 24% of hammer price | VAT at 20% will be added to the Buyer's Premium |
| Zachys | All lots | 25% of hammer price | Unless otherwise indicated; plus any applicable taxes |
| WineBid | All lots | 17% of hammer price | Goes towards costs like multi-point inspection, market value, photos, ratings, tasting notes, producer history, and insurance |
| iDealwine | Auctions | 25.2% VAT included (21% excl. VAT) as of 02 March 2023 | From 27 March 2026, this will be 25.8% incl. tax (21.5% excl tax) |
In addition to the buyer's premium, you will encounter other costs. Taxes are a significant component:
- VAT and Sales Tax: Christie's states that VAT is payable on the buyer's premium and, for some lots, on the hammer price. Bonhams adds VAT at the current rate of 20% to the buyer's premium and charges. Zachys deems all bids exclusive of any sales tax, which shall be payable by the buyer. WineBid collects sales tax on all purchases, except those shipped internationally or to states where a direct shipper permit is held.
- Alcohol Duty: HMRC sets alcohol duty rates. For wine with an alcohol by volume (ABV) between 8.5% and 22%, the duty is £30.62 for each litre of pure alcohol in the product, as of 1 February 2026.
- Import/Export Duties: Christie's, Zachys, and iDealwine all state that buyers are responsible for applicable taxes, tariffs, or other government-imposed charges related to the export or import of the lot.
- Credit Card Processing Fees: Zachys charges a 2% processing fee for payments made by credit card.
- Storage and Shipping: The purchase price is exclusive of charges for storage, packing, or carriage, as Christie's notes. If you do not collect a lot by the end of the 90th day following the date of the auction, Christie's will charge storage costs. Zachys charges storage at the buyer's expense if wines are not collected within 14 calendar days. iDealwine applies storage fees of €0.15 per bottle per day, taking effect on the 31st day following the order confirmation, if purchases have not been paid for within 15 days. WineBid provides a minimum of two months of free storage at Global Storage Network (GSN) for any wines purchased. Extended free storage comes with the Collector (4 months) and Pro (6 months) membership tiers. For a comprehensive overview of all potential costs, consider using our landed cost calculator.
What happens after a successful bid?
When the auctioneer's hammer strikes, the auctioneer accepts the last bid. That forms a binding contract of sale between the seller and the successful bidder, according to Christie's and Zachys. Zachys adds that the auctioneer retains the sole discretion to reopen bidding, in which case no contract is formed until the final bidding process is completed.
Payment for all invoices is due immediately upon receipt, Zachys states. Christie's specifies that payment is due no later than the end of the 7th calendar day following the auction date. iDealwine notes that payment is due once the order is confirmed. Any outstanding payment after 7 days will accrue interest at a rate equal to one and a half times the legal interest rate referenced in France. If you fail to pay the purchase price in full by the due date, Christie's is entitled to charge interest at a rate of 5% a year above the UK Lloyds Bank base rate.
Ownership of the lot will not pass to you until the auction house has received full and clear payment of the purchase price, even if the lot has been released, as stated by Christie's. Zachys also confirms that title to purchased property shall not pass until payment in full has been received in good and cleared funds. The risk in and responsibility for the lot will transfer to you from whichever is the earlier of two moments: when you collect the lot, or at the end of the 30th day following the date of the auction. That holds unless otherwise agreed in writing, according to Christie's.
It is the buyer's responsibility to either pick up purchases or make shipping arrangements within 14 calendar days of the auction, Zachys states. WineBid places all purchased wines into storage at Global Storage Network (GSN) for you to schedule shipping or pick up at your convenience. It notes that purchases are never shipped automatically. iDealwine offers shipping services or direct pickup from its warehouse. For more information on securing your purchases, refer to our guides on how to buy wine at auction and how to store wine.
Regarding the condition of wines, Christie's states that lots are sold "as is," in the condition they are in at the time of sale, without any representation or warranty as to condition. Zachys similarly states all wines are sold "as-is." However, Christie's offers an authenticity warranty. Christie's will set aside the sale and refund the buyer if two things happen. Within 21 days of the auction date, Christie's must receive written notice from the buyer that the lot was short or ullaged, or that a catalogue statement of opinion was not well founded. The lots must then be returned within 14 days in the same condition. iDealwine guarantees that wines will be authentic and conform to their published descriptions. It cannot guarantee the condition of the cork or tasting characteristics for purchased wines. WineBid states that all purchases are made "as is" and does not offer refunds or exchanges for bad wine. For details on assessing wine condition, see our guide on wine ullage levels explained.
How does bidding work in practice?
Bidding generally starts below the low estimate and increases in steps, known as bid increments. The auctioneer decides at their sole option where the bidding should start and the bid increments, according to Christie's.
Auction houses typically use predetermined bidding increments. Here are examples:
| Current Bid Range (USD) | Zachys Increment (USD) | WineBid Increment (USD) |
|---|---|---|
| $0-100 | $10 | $1-$99: $1 |
| $100-500 | $20 (up to $500) | $100-$299: $10 |
| $500-1,000 | $50 | $300-$499: $20 |
| $1,000-2,000 | $100 | $500-$999: $50 |
| $2,000-5,000 | $200 | $1,000-$2,999: $100 |
| $5,000-10,000 | $500 | $3,000-$4,999: $200 |
| $10,000-20,000 | $1,000 | $5,000 and up: $500 |
| $20,000+ | $2,000 |
Note: Zachys increments are for USD, WineBid increments are also for USD.
You can place bids in several ways: in-person, by phone, by written bids (also known as absentee or commission bids), or online. Many platforms offer a "maximum bid" feature, allowing you to set the highest price you are willing to pay for a lot. The system will then automatically bid on your behalf against other bidders until it reaches your maximum, as described by WineBid, Zachys, and iDealwine. Christie's states that the auctioneer will take reasonable steps to carry out written bids at the lowest possible price, taking into account the reserve.
Some online auctions feature "overtime bidding" to prevent last-minute snipes. iDealwine's system automatically extends a lot by 5 minutes if a bid is placed in the final 5 minutes of an auction. If another bid is placed in the 30 seconds before the new closing time, the lot is automatically extended by 30 seconds. This 30-second extension can be repeated 9 times. The maximum extension therefore cannot exceed 9 minutes and 30 seconds.
For lots consisting of multiple identical items, known as "parcel lots," the buyer of the first lot often has the option to purchase any or all of the subsequent lots in the parcel for the same hammer price. Christie's and Zachys both describe this process, with Zachys noting that the option is at the discretion of the auctioneer.
To ensure you never miss an opportunity for a specific wine, set up price alerts on your watchlist. You will receive notifications when wines you are tracking come up for auction, helping you make informed bidding decisions.