What is typically added to the total selling price at an auction?

The buyer's premium is an additional fee that is added to the total selling price at an auction. This charge is a percentage of the winning bid and is typically paid by the buyer to the auction house or auctioneer for their services. The buyer's premium helps the auction house cover costs associated with conducting the auction, including marketing, staffing, and providing a platform for buyers and sellers to transact.

In many cases, the buyer's premium is clearly stated in the auction terms and conditions before bidding begins, ensuring that participants are aware of this added cost. It plays a significant role in the auction process, as it influences the final amount a buyer will need to pay for an item, effectively raising the total cost of the auction purchase.

While auction commissions, sales tax, and delivery charges might also apply in certain scenarios, the buyer's premium is the standard fee that is most directly associated with the auction process and is routinely added to the total selling price. Understanding this concept is essential for anyone participating in auctions, as it affects budgeting and bidding strategies.