What is Buyer’s Premium?

Understanding the Buyer's Premium:

In the auctioneer world, the buyer’s premium is an additional charge that the winning bidder must pay on top of the hammer price—the winning bid for a lot. This fee is a percentage of the hammer price and is charged by the auctioneer to cover administrative and operational expenses. It’s important to note that the buyer’s premium goes directly to the auction house, not the seller.

For instance, if you place a winning bid of £100 on a lot and the auctioneer’s buyer’s premium is 20%, your total payment to the auctioneer would be £120.

Planning Your Bids:

To avoid surprises, it’s advisable to factor in the buyer’s premium when determining your maximum bid. Calculating the total cost, including this fee, before bidding ensures that you stay within your budget.

By understanding the buyer’s premium and incorporating it into your bidding strategy, you can make more informed decisions and better manage your auction expenses.