Art auctions — The most important auction fees at a glance
Hammer price
The hammer blow at an art auction confirms the highest bid of a bidder and concludes the purchase contract. The highest bid at which the work of art is knocked down is also referred to as the hammer price or knockdown price. This price is used as the basis for calculating further costs associated with the auction.
Buyer’s premium
The buyer’s premium is a commission paid by the winning bidder in addition to his highest bid. Depending on the hammer price, the buyer’s premium is usually between 10% and 35% of the hammer price, with the European average being 25%.
Seller’s premium
In case of a successful sale, the auction house also charges the seller a placement fee. This commission, also known as seller’s premium, is the equivalent of the buyer’s premium and is usually between 10% and 25% of the hammer price.
Success fee
Some auction houses have started to charge the seller a success fee of up to 2% of the hammer price in addition to the buyer’s premium. This is due if the hammer price exceeds the upper estimate of the artwork.
