The insider’s guide to buying wine at auction
From the pen of a mystery vendor*
In my three decades amassing a deep understanding of the wine market—from both a buyer and seller’s perspectives—I have come across a few misconceptions, often expressed by newcomers, about the auction house format.
One of them is this idea that vendors might artificially inflate prices, leaving buyers paying more than they should. In my experience—which includes building a 10,000-bottle cellar, most of which I purchased at auction—the opposite is more likely. Let me explain:
The auction house invests significant time and effort cataloguing and marketing their wines, yet if a bottle doesn’t sell, no income is generated. Finding that sweet pricing spot that reflects rarity and quality but also greatly increases the chances of a sale, is one of the major imperatives of the auctioneering business. In this era of high access to pricing information from around the globe, it would be a disservice to buyers, sellers and a well-earned market reputation to price things incorrectly.
Typically, the auctioneer earns only a percentage of the final sale price, split between buyer’s premium and the vendor commission. For a $20 bottle sold at $10, the auction house might only make $3. If the wine doesn’t sell, they make nothing. This dynamic often leads to great wines, lovingly cellared for years, selling at prices lower than retail for current vintages.
Another common misconception is around the condition of the wines sold at auction and traceability of storage conditions for those bottles. This might be true in regions with climate extremes—like Australia—where there’s the occasional issue with heat extremes damaging wines, but in temperate New Zealand… this is rare.
Auction catalogues typically provide detailed condition reports and—from personal experience—out of tens of thousands of bottles that I’ve purchased, fewer than 1% were not in excellent condition.
Anecdotally, the great English/Australian wine expert Len Evans once visited Tullochs in the Hunter Valley, where wine was stored under a metal roof and was told that ‘as long as the wine didn’t boil, it remained unaffected’! While I don’t believe that entirely (i.e. cork-sealed wines can be more vulnerable to heat than screw-capped ones) wines purchased at reputable auctions are usually reliably stored, well-priced, and rewarding.
Bidding Approaches and Pitfalls.
If I had to categorise the style of purchasing of the many wonderful individuals who attend auctions, this would be a very basic approximation:
The Passionate Collector: You simply must have a particular bottle, no matter the cost. For example, I was born in 1959—a renowned vintage—and for my 50th birthday I organised a dinner featuring only 1959 wines. Completing the set with first growths meant overspending on some bottles—but fulfilling the vision was worth it.
The Determined Buyer: You genuinely want a bottle but aren’t willing to pay “any” price. In these cases, you often end up bidding close to retail value.
The Opportunist: You’re indifferent about winning and bid only if the price feels right. If someone else values the wine more, you let it go. This approach often yields wines at up to half their current retail price.
Although each of these strategies have their place and time (like securing beverages for a significant birthday vs a weeknight meal), there are potential pitfalls:
Overbidding: The competitive nature of auctions can lead buyers to bid beyond their limits, sometimes overpaying. This is a common mistake and one that even seasoned pros can fall into in the heat of the moment (I recently fell into this trap with a 1948 Rioja).
Winning Too Much: Low bids—especially in online auctions—can unexpectedly succeed, leaving you with more wine than anticipated. While this often results in excellent deals, it requires cashflow. Of course, you can always offer a portion of the wines in the next auction to mitigate this.
On balance, buying wine at auction is one of the best ways (exciting, rewarding and at points filled with adrenaline) to acquire high-quality aged wines at exceptional value. It’s a pursuit I can’t seem to resist!
* The author has spent 30 years buying and selling wine at auction across Australia, New Zealand, and parts of Europe. At one point, he built a 10,000-bottle cellar, most of which he purchased at auction. He has also managed wine departments for auction houses specialising in fine art and operated two companies that supplied high-end restaurants and resorts, giving him a deep understanding of the process from both a buyer and seller’s perspectives.
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