Regency Superior Auctions

So if an auction house says (edited to add says this in their terms of auction) "the highest bidder shall prevail, at one bid above the second high bid", but instead makes the bidder ay a higher amount, how is this not frauad against the buyer?

Getting back to the original post, I have had the same experience with Regency auctions, every lot won (somewhere between 10 - 15) over the past three or four auctions have been at my maximum bid.
After the first occurrence, I did a test on the next auction on just a couple lots. Won at maximum. I even tried starting at a lower bid and then raising my maximum. Up until the day of the auction, the bids always stayed at the "Current" or opening bid. After the day of the auction, all would go up to the maximum. Their auctions seem to always have high opening bids so now I just bid, if at all, on something I really want and just bid the opening.
It's also interesting in that if you go to their auction results, the majority of the lots do not sell, adding more doubt on bidding activity just on my lots.
While originally having gone the auction route because of the games on ebay (like the Cartel sellers), I have found much the same issues with auctions and now only bid at a couple auction houses I think I can trust.

From Regency Superior's Terms of Sale:




So what the left hand giveth, the right hand taketh away. I read Paragraph 3 to say that your bids will be eaten up by the seller's desire for as much as possible, as opposed to another bidder's desire for the item.

I have interpreted the combination of those two rules as meaning that the auction house will bid the reserve price, and only that price, on behalf of the seller if that will sell the lot. If there is a bidder who has indicated a maximum bid at or above the reserve price, the auction house will invoke their right to bid on behalf of the seller at the reserve price and the bidder will win the lot at that price or at worst one level above. I do not think that an equitable way to interpret that second rule is to allow the auction house to keep merrily bidding on behalf of the seller all the way up to a bidder's maximum.

In the example cited in the thread in the post by IkeyPikey, if the reserve price is $80 and my max is $100, I should get the lot at $80 or at worst $85. If my max is $60, then the lot gets passed.

As noted in my original post, the auction house has a goal of maximizing the prices realized by their selling clients and I don't begrudge them that objective. I hope to benefit from that objective if and when I decide to stop collecting and consign my collection to an auction house to sell for me. In addition, however, the auction house has a duty IMHO to abide by its own rules in an equitable fashion for the buyers; after all, I'm also paying a buyer's premium and should expect to receive fair treatment accordingly.

This whole situation is one of the reasons why I prefer to bid in person or at least real-time via internet through SAN or directly with the auction house rather than submitting my bids in advance of a live auction. I haven't investigated using an auction agent since I am not familiar with the typical arrangements or whether the level of my purchases would justify using an agent economically. I had assumed that Regency Superior would be a reputable auction house (and I have no evidence yet otherwise) since they appear to handle the main auctions at most of the major shows, including the APS show. However, I do not believe that I am that astute of an observer of the market or that crafty a bidder that my maximum bid always seems to just hit the mark in terms of meeting reserve prices and outlasting other active third party bidders.

I may be the Oracle of Delphi, but my ability to foretell the future ain't that good.

IMO, the Oracle's interpretation of the two rules is the only reasonable interpretation. An auction house systematically going beyond pre-set reserves to invoke maximum bids as described in this thread would make rule no. 1 an intentional misrepresentation.

Some statistics

I took a look at the realizations of a subset of the last Regency Superior Auction. US Plate Blocks. Some interesting results..


67% of the Plate Block lots were "closed" and did not sell. So those hoping for an unreserved auction were sorely disappointed.

Of the 33% that did sell, those lots, on average, only received 75% of the minimum estimate. This figure does not include fees.

My impression of the sale was that the estimates looked high. Looks like the results bore out that impression.

Bob

Because I have no life, I did one better. Of the 1,600 lots comprising US Stamps, from 1847 First Issues through Full Sheets, only 39% of the lots sold.
I think the bigger issue is not just in the estimates, which tend to be high, but in that the opening is usually within 70% to 85% of that estimate.
People, I think, like to bid and at least have the illusion of "getting a deal" and then once the bidding gets going, they feed on it and will often go over their limit (I know I have). But if it starts at a level that is already close to or over what they want to spend, they won't bid. Listening to the live auctions, you often see no one wants to open the bidding or it is really slow starting, as if bidders need someone else to confirm a lot's value. Then is just takes off.
On ebay, I've listed items as "Buy It Now" and no one hardly looks at it. More often than not, I then switch it to Auction and it sells for more than I was asking in Buy It Now.
It's human nature, the art of the sale.

I also won a lot in the same auction and ended up paying my high bid for the item. It only serves to remind me that Dutch auctions are the way to go...

Well at least it's not like an Apfelbaum auction. There, you can be high bidder and they still give it to someone else.

Earlier in the thread, using an agent was mentioned. Jeff Purser once told me that if I was bidding on a "nice to have" lot and going to low-ball it, give the bid to the auctioneer. If it was an item I "had to have," use an agent. Years ago I gave the agent a $600 bid and he won the lot for me for $60. More recently, an agent bought five lots for me (of the six I wanted) at about 50% of my top bids. Agents fees vary, but I've always felt I got my money's worth. And, yes most agents will view the lots for you, but you have to tell them what to look for.
.

These comments are primarily to explain agent's fees, which to many collectors (and dealers!) is an area they shy away from because they do not understand it.

Generally, professional stamp agents charge collectors 5% of the hammer price and dealers 3% of the hammer price. Most (or all) also have a daily "cap", which varies from agent to agent, but means that if you give a lot of bids amounting to potentially a lot of agent fees, they will "cap" your fees at a certain price. Since I am no longer in the business and thus am out of touch with these "caps" I can only tell you that ten year's ago my dealer's cap with Frank Mandel (one of the top agents) was $250.00. While that sounds like a lot, it isn't if you are bidding on a lot of material and might easily exceed this at the percentage fee. (How much is 3% of $20,000.? See, it's pretty nice to pay $250. versus $600. ain't it?....).

But most importantly, it is rather easy nowadays to communicate with the bigger agents. Most of the bigger pubic auctions list their contact info in the front of the catalog and all of them (I believe) have email addresses, so the answer to any questions is only an email away!

I basically agree with Jeff Purser's advice BTW. And Ken Srail's, and many other posters in this thread. This is a fairly complex subject. It has "gray" areas despite what supporters of a particular point of view may think is true.

Regency Superior Auction is a slow paying auction to it's consignors offering all kinds of excuses to include ill health, check in the mail, staff reductions, etc....

Check St. Louis, Mo. BBB Complaint ID # 11951926 or contact Mr. Bill Smith for background....

Under the Uniform Commercial Code, valid in all states except Louisiana, an auction is assumed to be RESERVED, unless advertised as unreserved. The reserve may or may not be disclosed. Sometimes, it is amazing how a bidder can always submit a high bid one increment over the under bidder. As far as agents go, Jeff Purser once told me a simple rule: If you just like the item and plan on low-balling it, give your bid to the auctioneer. But, if you've got to have it, use an agent. I collect some pretty esoteric areas and do use agents as I'm often the only bidder. They are well worth their fees.

I won and paid for lot 118 (a scott 85) on extension from Regency's sale 121 last November. Invoice 01210047

More then 4 months later I still have not received this stamp.

Regency has apparently ignored numerous emails over the last few months, as I have no email replies from Regency.

They ignored me leaving a message on their phone voice mail, which is now full and no longer taking new messages.

They have no human beings to speak to via phone.

Douglas

Depending on how you paid, you could do a charge back on the payment as item not received. Four months is more than fair. With their voicemail full and no replies to emails, something is not right.

A charge back will generally get their attention unless they are closing shop.