Buyer's and seller's premiums

The flagship London summer sales were the first to take place since the major auction houses all raised their buyer’s premiums in the first half of 2023.

Christie’s first major auction series since raising its buyer’s premium last month kicked off in New York offering Impressionist and Modern art.

I’m just wondering why you still persist in showing auction prices without including the buyer’s premium charges.

Auction houses Bonhams and Phillips have both increased their buyer's premium.

Christie’s has changed its buyer’s premium levels this autumn – creating clear air between its fee structure and those used at Sotheby’s and Bonhams.

MADAM – I note that Sotheby’s will be opening a retail shop at their Bond Street premises (News, ATG No 2462).

MADAM – ATG's report ‘Sotheby’s introduces new fee on top of the hammer price and buyer’s premium’ (News, ATG No 2454) will raise eyebrows.

Sotheby’s has introduced a new fee called an ‘Overhead Premium’ that is payable by all auction buyers across its salerooms and online auctions globally.

Dix Noonan Webb (DNW) has become the first UK numismatics auction house to set its buyer’s premium beyond 20%. The London coins, medal and jewellery specialist will charge a premium of 24% from September.

MADAM – I believe auction houses should make it clear to bidders that buyer’s premium has gone up and the fee does not include VAT.

Auction house Bonhams has raised its buyer’s premium levels, adding a new threshold of 27.5% on the first £2500/$3000 of the hammer price.

MADAM – a simple question to auctioneers in general: are you in danger of slowly killing the goose that lays the golden eggs?

MADAM – Bearing in mind that auctioneering can be a university qualification (unlike dealing) and is an occupation that charges for its services, should there not be some form of censure and control over firms that get it so wrong?

Fees charged by auctioneers, from buyer’s premium to condition reports, have been a hot topic in the pages of ATG and on social media recently. One reader contacted us regarding the move by a West Midlands auction house to charge winning bidders who have used the phone the same fee as online buyers.

MADAM – Various of your correspondents over the last few weeks find that the prospect of paying for a condition report, as well as a buyer’s premium, sticks in their craw.

MADAM – You continue to receive letters from dealers complaining about buyer’s premiums.