What Is Christie's and How Does It Work as an Auction House?

Christie's is one of the world's oldest and largest fine art auction houses, operating since 1766. But if you're unfamiliar with how auction houses function—or what role Christie's plays in the art and collectibles market—the specifics can feel opaque. This guide explains what Christie's does, how its business model works, and what you'd need to consider if you're thinking about buying or selling through them.

The Core Business: What Christie's Actually Does

At its foundation, Christie's is a marketplace facilitator. It brings together sellers (called "consignors") who own valuable items—primarily fine art, jewelry, watches, rare books, wine, and collectibles—with potential buyers. Christie's doesn't typically own the items it sells; instead, it authenticates them, markets them, and conducts the sale on behalf of the owner.

The company operates through both in-person auctions (held in major cities like London, New York, Paris, and Hong Kong) and online sales. This dual model means the house serves both traditional collectors who value the pageantry and in-person inspection of high-stakes auctions, as well as modern buyers who prefer bidding remotely.

How Christie's Makes Money: The Commission Model

Christie's revenue comes primarily from commissions on hammer price—the final bid amount at which an item sells. The house also typically charges buyer's premium, a percentage added to the hammer price that the winning bidder must pay. This dual-commission structure is standard across major auction houses.

The exact percentages vary and are not fixed publicly, but the principle is consistent: Christie's takes a cut from both ends of the transaction. For sellers, this means the price they receive is the hammer price minus the seller's commission. For buyers, the final cost includes the hammer price plus the buyer's premium (plus applicable taxes and fees).

What this means for you: If you're considering selling, the commissions directly reduce your net proceeds. If you're buying, premiums significantly increase your total cost above the listed estimates you see in catalogues.

Types of Sales: Auctions vs. Private Sales

Christie's operates two distinct sales channels:

Auction Sales

Traditional timed events—live or online—where items are offered to open bidding. The auctioneer sets a reserve price (the minimum the seller will accept), opens the bidding, and the item sells to the highest bidder. Auction sales are public, competitive, and price-discovery driven.

Private Sales and Negotiated Deals

Christie's also facilitates off-market transactions between known buyers and sellers, particularly for high-value items. These are confidential and don't follow the auction format. They often involve direct negotiation on price and terms.

The key difference: Auction sales are transparent and competitive; private sales offer privacy and potential flexibility but without the market-testing mechanism of open bidding.

Who Uses Christie's and Why

Different buyer and seller profiles engage with Christie's for different reasons:

Collectors and institutions use Christie's to acquire rare or authenticated items with documented provenance. The house's reputation for vetting authenticity and providing transparent sale history (provenance) carries weight.

Estate liquidators and heirs consign items when they need to convert assets quickly and reliably. Christie's handles authentication, insurance, and marketing—removing uncertainty.

Investors in alternative assets (art, wine, watches) view Christie's sales data as a barometer for market trends and valuations in these categories.

Casual sellers with valuable items may approach Christie's if they believe an item warrants expert handling and a global audience, though the house is selective about what it accepts.

The Consignment Process: What Sellers Need to Know

If you own something potentially valuable and consider selling through Christie's, the basic process involves:

1. Initial assessment: You contact Christie's with information or photos of the item. Specialists evaluate whether it meets the house's standards and estimated value range.

2. Valuation and reserve negotiation: If accepted, Christie's provides an estimated price range and discusses reserve price—the minimum hammer price at which the item will sell.

3. Commission agreement: You and Christie's agree on the seller's commission and other terms (insurance, marketing budget, estimated selling date).

4. Authentication and cataloguing: The item is examined, documented, and photographed for the sales catalogue and online platform.

5. Marketing: The item is promoted to Christie's database of collectors, published in catalogues, and featured on the platform.

6. The sale: The item is auctioned on the scheduled date. If the hammer price meets or exceeds the reserve, the sale proceeds. If not, the item is unsold (called a "buy-in").

7. Settlement: You receive the hammer price minus commissions and agreed expenses, typically within a set timeframe after the sale.

Critical variables: Estimated value ranges depend on market demand at the time of sale—not on the item's intrinsic worth. Market conditions, economic cycles, and competition from other similar lots all influence final price. There is no guarantee an item will sell, and commissions are owed regardless of outcome in some agreements.

Buyer Considerations: Authentication and Cost

Buyers trust Christie's sales for the authentication guarantee. The house's specialists research provenance, conduct scientific testing where appropriate, and provide written condition reports. If an item is later deemed inauthentic under specific conditions, Christie's may offer recourse—though the exact terms depend on the sale agreement and applicable law.

However, authentication does not guarantee investment value or future appreciation. Market tastes, economic conditions, and supply all affect whether an item appreciates or depreciates.

Buyer's premium and total cost are often underestimated. A painting with a $100,000 hammer price estimate may cost $140,000–$160,000+ after premiums, taxes, and fees. Reading the terms carefully before bidding is essential.

Key Factors That Influence Outcomes

Several variables shape whether a sale succeeds and at what price:

What to Expect: Realistic Outcomes

Selling through a major auction house is not a guarantee of premium pricing. Some items sell below estimate, some meet it, and some exceed it—depending on competition in the room and buyer sentiment on the day.

Similarly, buying at Christie's carries costs beyond the hammer price, and authentication—while rigorous—is an assessment at a point in time, not a permanent insurance policy.

The auction house model works best for: high-value, well-documented items with clear market demand; situations where the seller values expertise and global reach over speed or simplicity; buyers who prioritize authentication and provenance documentation.

Understanding these dynamics helps you assess whether Christie's (or any auction house) is the right fit for your specific situation—which depends on the item's value, your goals, timeline, and risk tolerance.