Art market

John Myatt held his breath as the bidding began in the Christie’s auction room. His drawings were selling, one by one. He had dreamed of having his work on the block since the beginning of his career. He felt a tingle of adrenaline as the paddles went up... and victory as he strolled through the city streets with a wad of money in his back pocket afterward. But the feeling didn’t last long. Eventually, Myatt started to feel empty and disappointed. The psychic void grew as the prices that his agent, John Drewe, sought for his work went up and up.

On February 1, 2024, Sotheby’s auction house announced a new fee structure that came as something of a surprise to the art world. For decades, Sotheby’s and its competitors have been one-upping each other with respect to the fees charged to buyers and sellers. While these fees have unquestionably increased the profitability of the auction houses themselves, in their complexity they have often bewildered auction participants and market observers alike. In theory at least, that may be about to change. Beginning this spring, Sotheby’s new fees will be both lower and potentially easier for all parties to understand. They apply to sellers consigning lots for auction after April 15, and to buyers beginning on May 20.