A buyer's premium is an additional fee that is charged on top of the final auction price of an item. This fee is typically a percentage of the final hammer price and is paid by the buyer to the auction house or seller.
Buyer's premiums are common in the auction industry and are used to cover the costs of conducting the auction, including advertising, cataloging, and administrative expenses. The percentage of the buyer's premium can vary from auction to auction, but it is typically between 10-25% of the final hammer price.
It is important for buyers to be aware of the buyer's premium before bidding on an item, as it can significantly increase the overall cost of the purchase. Some auction houses may also charge additional fees, such as sales tax or handling fees, so buyers should carefully read the terms and conditions of the auction before participating.
In some cases, the buyer's premium may be negotiable, so buyers should inquire with the auction house or seller about the possibility of reducing or waiving the fee. Overall, buyer's premiums are a common practice in the auction industry and are used to help cover the expenses of conducting an auction.
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