Definitions for Buyer's premium
buy·er's pre·mi·um

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1. Buyer's premium

   In auctions, the buyer's premium is a charge in addition to the hammer price (i.e. the winning bid announced) of an auction item, or lot. The winning bidder is required to pay both the hammer price and the percentage of that price called for by the buyer's premium. It is charged by the auctioneer in addition to the commission which has always been charged by auction houses to sellers. One hundred per cent of the "buyer's premium" is retained by the auction house and is not shared with the item's seller. Major auction houses have levied the buyer's premium for several decades, particularly in fine art auctions, with percentages in the region of 10–30%. In real estate auctions in many European countries, the buyer's premium, if charged at all, is much less (2–2.5%). More recently in the UK, however, foreclosure properties have been offered without fee to the seller, but with a buyer's premium of 10%. The buyer's premium has been characterized by auction houses as a necessary contribution to the costs of the administrative process, although some in the auction-buying community see it as an unreasonable additional charge. While a few auction houses may market themselves as "not charging a premium" to gain favor with customers, this is now rare and the buyer's premium is commonplace with auction houses. However, small independent auctioneers in the US have been slow to adopt the buyer's premium. The amount of the buyer's premium will normally be stated in the auction house terms and conditions. For UK properties, it is listed in the RICS (Royal Institute of Chartered Surveyors) Common Auction Conditions or in the special conditions for the lot. In Europe, the buyer's premium may also be subject to VAT (value-added tax), while in the United States, most states require sales tax to be calculated on the amount of the premium since it is a component of the price being paid for the item.

WikidataRate this definition:0.0 / 0 votes

1. Buyer's premium

   In auctions, the buyer's premium is a percentage additional charge on the hammer price of the lot that must be paid by the winner. It is charged by the auctioneer to cover administrative expenses. The buyer's premium goes directly to the auction house and not to the seller. Major auction houses have made this charge for some time, particularly in the fine arts sector, with premiums in the region of 10%-25%. In the real estate sector in many European countries, the premium, if charged at all, is much less. However, more recently, in the UK foreclosure properties have been offered without fee to the seller, but with a substantial buyer's premium of 10%. The buyer's premium is alternately considered a necessary contribution to the costs of the administrative process or an unreasonable extra charge by the auction community. Auction houses may now market themselves as "not charging a premium" to gain favor with customers. Regardless, such premiums are now commonplace and continue to grow. The amount of the buyer's premium will normally be stated in the auction house terms and conditions or, in the case of UK properties, it would be listed in the RICS Common Auction Conditions or in the special conditions for the lot. In Europe, the buyer's premium will also be subject to VAT.

How to pronounce Buyer's premium?

1. Alex

   US English

   David

   US English

   Mark

   US English

   Daniel

   British

   Libby

   British

   Mia

   British

   Karen

   Australian

   Hayley

   Australian

   Natasha

   Australian

   Veena

   Indian

   Priya

   Indian

   Neerja

   Indian

   Zira

   US English

   Oliver

   British

   Wendy

   British

   Fred

   US English

   Tessa

   South African

How to say Buyer's premium in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of Buyer's premium in Chaldean Numerology is: 4

2. Pythagorean Numerology

   The numerical value of Buyer's premium in Pythagorean Numerology is: 5

References

1. ^ Wikipedia
   https://en.wikipedia.org/wiki/Buyer'S_Premium
2. ^ Wikidata
   https://www.wikidata.org/w/index.php?search=Buyer's premium