A percentage added on top of the hammer price that the buyer pays to the auction house. Typically ranges from 10% to 25% depending on the auction house, platform, and sale type. This fee is a primary revenue source for auction companies.
How It Works in Practice
The buyer's premium is charged on top of the hammer price. If an item sells for $100 with a 20% buyer's premium, the buyer pays $120 total. The seller receives the hammer price minus their commission. For estate auctioneers, setting the right buyer's premium is a balancing act: too high discourages bidding, too low cuts into your revenue. Most estate auction houses charge 15–20% for live sales and 18–25% for online-only sales (to cover platform fees). The premium should always be clearly disclosed in the auction terms.
Frequently Asked Questions
What is a typical buyer's premium for estate auctions?
Who pays the buyer's premium — the buyer or seller?
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