In auction terminology, what does the term "bidder's premium" refer to?

The term "bidder's premium" refers to a fee added to the winning bid in an auction. This premium is typically expressed as a percentage of the final bid amount and is charged in addition to the winning bid. It serves as a source of revenue for the auctioneer and can also help cover the costs associated with conducting the auction. The bidder's premium is important for bidders to understand, as it affects the total amount they will need to pay if they win an item.

Understanding this term is crucial for anyone participating in auctions, as it illustrates how the final price of an item can exceed the amount of the highest bid. This practice is common in various auction settings, including real estate, art, and collectibles.