What is buyers premium?

A buyer's premium is an additional fee that is charged on top of the hammer price (final bid amount) in an auction. It is typically expressed as a percentage of the final bid amount and is used to cover administrative costs and overhead expenses associated with conducting the auction.

Buyer's premiums are common in both traditional live auctions and online auctions. The percentage charged as a buyer's premium can vary depending on the auction house and type of auction. It is important for bidders to be aware of the buyer's premium as it effectively increases the total price a buyer will pay for an item.

Buyer's premiums are usually disclosed upfront in the terms and conditions of the auction, so bidders know how much extra they will need to pay if they win an item. It is important to factor in the buyer's premium when setting a maximum bid amount in order to avoid any surprises or unexpected costs.