Buyer’s premium changes the real price of a winning bid. This guide explains how to read it safely before a sale.
Written and maintained by Laurens Lokker, HammerAlert founder. Last updated: 15 June 2026.
The hammer price is the bid accepted by the auctioneer. The invoice normally adds buyer’s premium, VAT or sales tax, resale royalty where applicable, online bidding fees, shipping, insurance and sometimes local administrative charges.
That is why a sale that looks affordable in the estimate can become materially more expensive after fees. Serious bidding starts with the all-in number, not the hammer number.
Rates vary by auction house, category, price band, location and bidding channel. A global house may use one scale for fine art, another for motorcars, and a separate treatment for online-only sales. Regional houses may publish a simpler flat rate, but the tax treatment can still differ.
Do not copy last month’s rate into this month’s bid sheet. Treat the house’s current conditions of sale as the source of truth.
Before bidding, decide the maximum total invoice you would accept. Work backwards from that number to the hammer bid you can place. If the lot requires shipping, import, restoration or framing, include those costs before the sale begins.
HammerAlert helps with discovery and timing. The auction house catalogue remains the authority for premium rates, taxes and payment terms.
Buyer’s premium is the fee charged by the auction house to the buyer on top of the hammer price.
Usually no. Estimates normally refer to hammer price ranges unless the house says otherwise.
Use the auction house’s current conditions of sale for that exact auction and bidding location.