Buyers Premium

Buyer's premium is an additional fee paid by a buyer at an auction or in a sales transaction. It is typically a percentage of the final bid price and is added on top of the winning bid. For example, if a painting is sold for $1,000 and the buyer's premium is 10%, the buyer would pay a total of $1,100. This fee often goes to the auction house or seller and covers administrative costs and services provided during the auction process. Understanding this fee is important for buyers to know the total cost of their purchase.