These are also available at the back of our catalogues. Although it may seem like a random extra charge, it actually works to provide a lot of comforts and necessities for the auction itself. You’ll instantly see these charges all added together into one percentage: Add that percentage onto the hammer price and that’s what your item will cost you. You can avoid this charge if you pick up your item in person. There are many costs that go into an auction that most people do not consider. Phillips charges the successful bidder a commission, or buyer’s premium, on the hammer price of each lot sold. This is usually charged only on the buyer's premium rather than the whole hammer price. You should find that even after those charges are added on you’ll still be acquiring a great item at a price lower than in a high street store. Many people who attend auctions do not understand what a buyer’s premium is or why auction houses even charge them. The buyer’s premium is charged so buyers are comfortable during the time of auctions and so the auction can operate efficiently. When there are no more bids, the auctioneer’s hammer (or gavel, as it is known) comes down and the final bid becomes the hammer price. All you as the buyer need to do is know what those fees are and then take those charges into account when you decide how much to bid. The buyer’s premium added another $15.4 million for a final price of $142.4 million. VAT also applies to this charge. The lot description and the auction house’s catalogue will display these. On the first £100,000 of the Hammer Price (of any individual lot) the buyer will pay the hammer price and a premium of 23% (plus VAT) or 27.6% (inclusive of VAT). Fellows recommend that all bidders and buyers read our terms and conditions and buyer’s premium. Auction houses charge their buyers for several reasons. The buyer’s premium is a percentage added to the hammer price* of each lot sold, and paid by the winning bidder. For example, if there is a 20% buyer’s premium then on a hammer price of £100 a further £20+VAT will be added (20% of £100). The hammer price is the value of the highest bid on an item in an auction. We are closed this Saturday 31st October. And to see what these charges will be before you bid on all you need to do is just click on the ‘Additional Fees’ link. VAT is payable on the hammer price only if goods are being sold on behalf of someone registered for VAT in their role as a vendor. Fellows recommend that all bidders and buyers read our terms and conditions and buyer’s premium. Online commission – for lots sold online, charges 4.95% on the hammer price although this fee varies depending on the auction house and type of auction. Copyright © Metropress Ltd, (t/a Auction Technology Group) 2020. Be sure to join us at our next auction so you don't miss out on a great deal! Buyer’s Premium. This is added on to the final hammer price, as a percentage of it. Check how the auctioneer is applying VAT by looking in 'Important info' section on The premium is charged by the auctioneer as a remuneration. We have made comparisons for the rise in buyer’s premium under the new pricing policies at both Christie’s and Sotheby’s. You may also want to consider taking out insurance for the item while it is in storage. For more information click here. Standard In House. Simple. When buying at auction, make sure you know what fees are payable before you bid. | Terms of Use, Three Money Saving Tips to Buying Construction Equipment, Why Your Financial Institution Should Partner with Backes, How to Prepare Your Equipment for Auction, Everything You Need to Know About Auctions, Food Service Auctions and Your New Business, Common Questions About Selling at an Auction. The buyer's premium at most major auction houses has been slowly creeping higher and now is usually set on a sliding scale as the value increases. Lots that came from outside the European Union may also incur additional charges: look out for details in the auction house’s catalogue. | Sitemap Here are some charges that will be added to the hammer price. Take hammer prices of 500,000, 5m and 50m as examples, Sotheby’s charges higher buyer’s premium than its rival Christie’s in salerooms in general. The extra charge is always put to good use. If that all appears a bit bewildering, don’t worry, it’s much simpler than it sounds. Buyer’s Premium. By using our services, you agree to our use of cookies. All Rights Reserved. The buyer shall pay: On the first £100,000 of the Hammer Price (of any individual lot) the buyer will pay the hammer price and a premium of 23% (plus VAT) or 27.6% (inclusive of VAT) Occasionally, there are additional fees relating to specific lots in a sale. The JSE&A buyer’s premium is variable depending on how the bid is placed. The answer is that they charge fees to the seller and to the buyer. Posted On: July 6, 2018 by Backes Auctioneers in: Auctions. The premium is charged by the auctioneer as a remuneration. We will be back open on Monday 2nd November.

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