Buyer's premium

More recently in the UK, however, repossessed 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.

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.

There was no fee at Christie's sales in Australia and Sotheby Parke-Bernet auctions in South Africa.

Christie's also charged no fees to buyers at its South Kensington house in London and at Edmiston in Glasgow.

Christie's introduced a 10% fee to buyers in the United States when it opened at Park Avenue and 59th Street in May 1977.

[7] On 24 January 2003, Christie's raised commissions charged to buyers in New York, London and Geneva to 12% on amounts above $100,000, effective 1 March 2003.