The hammer price is the final bid accepted by the auctioneer at the moment the hammer falls, which establishes the sale of a lot at auction. It is the basic figure from which both the buyer's total cost and the seller's proceeds are calculated, but it is not the amount a buyer actually pays.
In addition to the hammer price, buyers pay a buyer's premium, a percentage charged by the auction house, and VAT on that premium, and in some cases further charges such as Artist's Resale Right, import VAT or online bidding fees. Sellers pay commission and other charges deducted from the hammer price. This means the total cost to the buyer can be significantly higher than the hammer price, while the amount received by the seller is lower. Published auction results sometimes quote the hammer price alone and sometimes the price including premium, so it is important to establish which figure is being used when comparing prices or researching values. Before bidding, buyers should read the auction house's terms and conditions, take account of all charges and allow for collection, shipping and any restoration costs when setting a maximum bid.
