Heritage History
Rival collectors Jim Halperin and Steve Ivy started Heritage Auctions in 1976. The company originally existed to sell coins but in 2001 started to sell comic books. Since that time, Heritage has expanded its auctions to handle most collectibles and memorabilia. Collectibles make up a sizable portion of items sold by auction houses.
Sotheby's and Christie's dominate the auction market for sales, but Heritage Auctions came in at #3 in sales for the year 2021. This company has gone from a single facility in Texas to a multinational company with houses and staff around the world to meet the needs of collectible sellers. If the comic book is of any significance, the chances of it being sold at Heritage are very good.
Enter Comic Books!
Heritage Auctions' record sales in comics are regularly mentioned on GoCollect. People in the know realize Heritage Auctions gets premium dollars for these items. Investors, financial planners, accountants, and attorneys regularly send their clients to Heritage Auctions to sell their books because of these record sales.
GoCollect uses this sales data to calculate the FMV for books. One cannot deny Heritage Auctions' impact on selling comic books. eBay may sell more books by volume, but Heritage Auctions sells more significant books for top dollar. Heritage Auctions is a very important place that investors and collectors can utilize to sell (and buy) books. The analysis of why a person would or would not use Heritage Auctions all comes down to the books.
I. The Benefits of Heritage Auctions
A. The Leaders and the Best (My U of M Reference)
One of the greatest benefits of using Heritage Auctions is that they are the leading auction house for selling comics. Christie's and Sotheby's may sell more in dollars, but they do not focus on comic books. That means unless the book is of such significance and pedigree those two auction houses will not even entertain selling comic books.
In contrast, Heritage Auctions started selling collectibles and kept its focus on that market. As a result, they have built quite a client base they can draw on as their buyer base.
B. Customer Base
It is very important to have a client base of reliable and dependable buyers. Any good local comic book store will say that while they love a whale coming into a shop and dropping big dollars on books, the lifeblood of their business is repeat clients. Heritage Auctions have reliable higher and mid-range bidders that buy books.
Buyers go to where books are being sold and Heritage Auctions is an industry leader that regularly brings these books to market. This allows Heritage to maximize the dollar value their auctions obtain for book sales.
C. Industry Leaders
When one uses an auction house, the consignor is paying for the seller's experience. A comic book investor or collector may have sold thousands of books, but it is not their business.
Professionals must live and breathe in that market every day. Much like people who invest in the markets or people who draft their own legal documents, one can sell comic books themselves. The tools and platforms are out there to assist sellers in the process. The problem is that many do not get the best use of those tools and make very serious mistakes. Heritage Auctions has experts who know the best ways to use those tools to squeeze every dollar out of the sale.
D. Convenience
Heritage Auctions handles everything from the listing, marketing, and shipping of the item. The seller only has to sit back and wait for their money. If anything goes wrong with the transaction, then Heritage Auctions deals with them under the terms of the listing agreement. Time is money. Collectors and investors can spend more of their valuable time looking for more items or spending time on other life events rather than dealing with an eBay buyer who complains about the book or lost shipment.
Another aspect that is lost on many sellers is the risk of loss. If anything happens to the item while in Heritage Auction's possession, the responsibility may fall on them rather than the consignor based on the listing agreement.
II. Drawbacks of Heritage Auctions
A. Nothing but the Best
Many comic book collections have a few higher-end books filled out by "other" books. These types of lower-tier books are not really desirable to a Heritage Auction house. Item names and pictures must be included when contacting Heritage Auctions. An auction house that has a high overhead cannot make money selling books that are unprofitable in their business model.
Harrod's in London does not make its profits selling the same items that can be found in Walmart. Heritage Auction will pick the best items they can from a collection and sell those and may leave the other items to be disposed of another way. Removal of these key books can cause the rest of the collection to be undesirable to other collectors.
B. Fees
Heritage Auctions is not a charity. They charge for the services they provide. eBay allows you to place banners and bold listings to attract buyers to items. Heritage Auctions has a list of clientele they can email catalogs that are directed to collectors and investors. They also professionally photograph and describe the items to attract the most bids.
These services cost money. The money comes from the fees that Heritage Auctions charges for selling an item. Auction houses charge for their services and many consignors believe these fees are too costly. Sellers should remember though that sometimes one gets what they pay for with auctions.
C. Lack of Personal Service on Intakes
One of the greatest problems I believe with Heritage Auctions is in their initial interactions with possible consignors. Most of the intake is online. This method is efficient but may create problems for some. One drawback that can be easily fixed is an automated response email indicating that the submission was received and that someone may contact the sender shortly. Messages like that inform the potential client that they were successful in sending their items in for review. The biggest problem though is that the person using the form may be internet savvy, but lack knowledge in an area where it is needed the most when using this type of form.
Many attorneys, accountants, and other professionals may not have the collectible acumen to relate the significance of a sizable collection. They may include a picture of a recent Black Panther comic because of the film but not show pre-code horror comics, Golden Age WWII covers, or L.B. Cole covers that are also in the collection. In addition, most executors are forced to deal with liquidating collections where they never know what is valuable and what is not. A bad first impression could cost them as well as preclude Heritage Auctions from listing auction items that should be sold at their auction house.
Even owners may not know their collections' full value. I have had many a client sit at my desk describing their assets for hours, only to include a book like Amazing Spider-Man #1 and Avengers #1 as an afterthought. Their financial planner did not ask about it, so why would an attorney, and thus Heritage Auctions, care about such items? (On a side note, I actually drooled over the collection!!!).
It makes good television when a family collection appears on the Antique Road Show that the owners never truly realized was valuable. A simple watch may be worth millions. How many of those people may have contacted Heritage Auction never accurately describing their possession?
Conclusion
Heritage Auctions is a great auction house dealing in high-end collectibles. They are the leading collectible auction house because of their knowledge and resources. High-end collectors and investors should contact them if they are looking to liquidate collections to determine if they offer the best means to sell the items.
The fact that they are industry leaders should not preclude one from contacting them. Remember that it never hurts to ask and the worst thing that can happen is they say no. Sadly, Heritage Auctions can be so selective that some items may never reach them because of this ability to be selective.
A Secret Reveal for the Final Installment
The final installment will be something that I have been hesitant to reveal. Every good collector and investor has secrets that assist them in getting where they are today. In the decades I have been an attorney and hobbyist, I have learned many things that have helped me avoid issues and conduct easier transactions.
The final installment will have me reveal the sweet spot for a place to sell comics, collectibles, and other items that are not self-service like eBay but also not as selective with what they sell as Heritage. Until then...
*This blog was neither requested nor sponsored by Heritage Auctions.
