Full Glossary
Pricing & Fees

Commission

The percentage of the hammer price that the auction house retains as payment for conducting the sale. Seller's commission typically ranges from 20% to 35% for estate auctions, and 15% to 25% for consignment auctions. This is separate from the buyer's premium.

How It Works in Practice

Commission is how auction houses get paid for their work — cataloging, marketing, conducting the sale, and managing settlement. The seller receives the hammer price minus the commission. For a $500 hammer price with 30% commission, the seller receives $350 and the auction house keeps $150. Combined with the buyer's premium, these two fees fund the entire auction operation. Some auction houses use sliding scales: lower commission rates on higher-value items to attract better consignments.

Frequently Asked Questions

What is a fair auction commission rate?
For full-service estate auctions (cataloging, marketing, sale management, cleanup), 25–35% is standard. For consignment-only auctions where the consignor handles delivery, 15–25% is typical. Higher commission rates are justified when the auction house provides more services. Many houses use sliding scales — lower rates on higher-value items to attract premium consignments.
Is auction commission negotiable?
Often yes, especially for high-value estates or ongoing consignment relationships. Auctioneers may reduce commission for estates with strong inventory, repeat consignors, or bulk consignments. However, cutting commission too low undermines the auction house's ability to invest in marketing, photography, and cataloging — which directly affects sale prices.

Related Terms

Buyer's PremiumHammer PriceConsignment Auction

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