Buyer’s Premium & Prices Realised FAQ

What is “Hammer Price”?

The hammer price is the winning bid at an auction. The hammer price is what is paid to the seller before commission or other fees are applied.

WHAT IS “BUYER’S PREMIUM”?

The buyer’s premium is a standard fee charged by auction houses that buyers agree to pay in addition to the hammer price.

WHAT IS “PRICE REALISED”?

Price Realised is the final price paid by the buyer and includes the total sum of the hammer price and the buyer’s premium.

WHAT IS THE BUYER’S PREMIUM AT WADDINGTON’S?

Waddington’s charges a buyer’s premium of 25% on the hammer price up to and including $25,000 CAD. Hammer prices in excess of $25,000 CAD will be charged a buyer’s premium of 22%.

*Note: Clients bidding on the Invaluable site will be charged a buyer’s premium of 28% up to and including $25,000 CAD. Hammer prices in excess of $25,000 CAD will be charged 25%.

*Note: Waddington’s charges a buyer’s premium of 20% on the hammer price for Wine & Spirits.

Buyer’s premium and applicable Canadian taxes are added to the hammer price.

Why do auction houses charge both the seller and the buyer?

Costs for auction services are shared between both the seller and buyer. The seller’s commission and buyer’s premium are collected by the auction house to contribute to the cost of promotion and conducting the auction.

MORE QUESTIONS?

Contact us at 416-504-9100 or [email protected].