They have low estimate and high estimate on your item. I believe the auction usually starts from 50% of low estimate. Assume your 1902 fat barrel has estimate of $8k to $12k, then, auction starts from $4k (or $5k, $6k if they felt the item being hot due to many bidders registered on it). That's probably the default reserve? God knows... if no one bids on $4k, they may lower starting to $3.5k, or $3k... It becomes a Dutch style auction.... but that situation is very rare though, most items sold between estimates. Many hot items sold above high estimate. Fewer items sold below low estimate.
Their initial assessment is based on pictures you send to them, pending hand-on inspection adjustment. That gives you a range of value. If the estimate is too low, you keep the gun, don't consign to them. It's so simple. But, be aware you will only get 80% of the auction hammer price -- if a gun came to you not cheap, say, $8k, consigning to them, it sold $10k hammer price,, that's higher than your cost, but only they will make money ($2k + $1.5k BP), you earn nothing though. So, that must be put into consideration.
Many high-value items mainly come and go via auction houses. Most buyers depend on future value increase-non-stopping, otherwise, it's not easy to break even, due to the transaction cost associated with those items. If counting on that expectation, really should NOT buy those.. the return does not worth the risk. As a hobby to spend some money, people could do that though.
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