john den

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When participating in auctions, it's essential to understand the concept of the "auction buyer premium." This term refers to an additional fee that buyers are required to pay on top of the final hammer price of an item they successfully bid on. The buyer's premium is typically expressed as a percentage of the hammer price and varies from auction to auction, ranging from 5% to 25% or more.

Buyer's premiums serve various purposes in the auction world. They help auction houses cover their operating expenses, marketing efforts, and administrative costs. Additionally, they incentivize bidders to bid responsibly, as the buyer's premium encourages them to consider the additional cost when determining their maximum bid.

Additional Links

https://getultimateauction.com/blog/what-is-a-buyers-premium-a-detailed-guide/