A bidder raises paddle 1070 during a sale in a Sotheby's saleroom

Heritage

Sotheby's, since 1744.

The auction house the real estate brand is named for, and the honest version of how the two are connected.

Sotheby's was founded in London in 1744 by Samuel Baker, a bookseller. Its first auction, on 11 March 1744, dispersed several hundred books from the library of Sir John Stanley and raised 826 pounds. The house moved to New Bond Street in 1917 and turned from the book trade to the art market, and it was the first international auction house to hold sales in Hong Kong, Russia, India and France.

Today Sotheby's publishes a global network of around 80 offices and annual sales turnover in excess of 7 billion dollars.

A contemporary oceanfront tower on the Miami coastline

How the two are connected.

Sotheby's International Realty was founded in 1976 by the auction house, for clients who were buying and selling significant property as well as art. In 2004 the residential brokerage and a long-term licence to the name passed to the company now called Anywhere Real Estate, which runs the franchise network today.

So the auction house and the real estate network are separate companies bound by a licence. The working link between them is referral, not shared ownership.

An aerial view of a waterfront estate on a Miami island

What that does and does not mean.

It means a property marketed by a Sotheby's International Realty affiliate sits inside a name a certain kind of buyer already trusts, and inside a referral network that reaches the auction house's clientele.

It does not mean a home is sold at auction, and it does not mean a listing is offered in a Sotheby's sale. Residential property here is sold the ordinary way, through the MLS and through the network. Anyone telling you otherwise is overselling the connection.

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