What is a hammer price?

The hammer price refers to the final bid amount at which an item is sold during an auction, and it is distinctively signified by the auctioneer's gavel coming down. When the auctioneer's gavel strikes, it indicates that the bidding has concluded, and the item is sold to the highest bidder at that moment. This price reflects the highest offer made by a bidder just before the auctioneer's signal, marking the official sale of the item.

Understanding the hammer price is crucial for anyone involved in auctions, whether they are buyers or sellers, as it establishes the final transaction amount for each sale. This concept is integral to the auction process, serving as the definitive moment of sale that determines the financial outcome for both the seller and the auction house.