A buyer's premium is a percentage-based fee added to the winning hammer price.
This helps cover the auctioneer’s expenses and administrative costs and off-sets credit card fees. The larger auction houses in major cities sometimes charge up to a 30% buyer's premium. Bidders may also be charged sales tax (depending on regulations of the individual state where the auction is held) on this additional fee.
Here’s an example ...
If you won an auction lot through “A-Z Auctioneers” with a 15% buyer’s premium and 5% state sales tax (the buyer’s premium is often taxed, but laws vary by state) here’s how it would work out:
|
Hammer Price |
$100.00 |
|
Buyer’s Premium (15%) |
$15.00 |
|
State Sales Tax (5%) |
$5.75 |
|
TOTAL CHARGED |
$120.75 |
You should note that buyer’s premiums vary depending on the individual auctioneer / estate seller using the AuctionNinja platform. Please be sure to read the terms for each individual sale. If you have questions about a buyer’s premium, please contact the auction house / estate seller directly. AuctionNinja does not control what individual sellers charge for their buyer’s premiums.