buyer's premium
Bidder's extra fee
A buyer's premium is a fee charged by an auction house on top of the winning bid, calculated as a percentage of the hammer price.
The buyer pays both the bid amount and the premium; the seller receives only the bid minus the seller's commission.
Premiums typically range from 10 to 25 percent: The painting sold for $50,000, but with the buyer's premium, the total came to $62,500.
- going onceAuctioneer's initial announcement
- fair warningReasonable advance notice
- surchargeExtra fee added
- commission feePayment for facilitating transactions
- service chargeFee for being served
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buyer's premiumhammer price
Winning auction bid amount
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