Is buyer's premium included in the hammer price?

No. Christie's says it is a percentage paid in addition to the hammer price, so the total is hammer price plus premium plus any applicable taxes or shipping. Rates and tiers differ by house, so find the schedule for your sale.

What does 'sold as is' mean?

Christie's says lots are sold as is, in the condition they are at the time of sale, and that condition reports are for guidance only. Request the report and extra photos before you bid.

Is shill bidding illegal?

UCC 2-328(4) gives the buyer the option to avoid the sale or take the goods at the last good faith bid if the seller or auctioneer knowingly bids on the seller's behalf and notice of that liberty was not given. States adopt the UCC with variations and may have other rules, so check yours.

Can I retract or cancel a bid?

It depends on the terms. The UCC text lets a bidder retract a bid until the auctioneer announces completion of the sale, while Christie's FAQ says a submitted bid cannot be cancelled and is a binding contract. Read the house's conditions before you bid.

Buying at Auction: Buyer's Premium and Lot Descriptions

2026-11-09 · By CollectorsTrend Editorial · General information, not appraisal, tax, legal or investment advice

The hammer price is not the price you pay. How to read a lot, a condition report, the buyer's premium and the reserve rules before you bid.

A bidder's paddle raised in an auction room with a collectibles lot on screen

The hammer price is not what you pay. Between the winning bid and the box on your doorstep sit a buyer's premium, possibly tax, shipping, and a set of terms you agreed to when you registered. Auction houses publish all of this. Few bidders read it until the invoice arrives. This guide covers how to read a lot description and condition report, how buyer's premium is structured, what reserve and shill bidding mean in law, and what to check about payment, shipping and disputes. We do not rank auction houses, and we did not collect rate cards.

The lot description is the start, not the end

A lot description tells you what the house says the item is. Christie's help library says a condition report "goes beyond a typical lot description" and covers "the physical state of an artwork or object at the time of auction," including "previous damage, fading, restoration and repair works." It also says that "lots are sold 'as is' at auctions, in the condition they are at the time of sale." So the question for any lot is whether you have the condition report, not whether the photo looks fine.

On who is responsible for getting it, Christie's page is blunt: condition reports "are provided free of charge and are for guidance only," and "it is the buyer's responsibility to ensure that you have requested, received and considered any condition report." Other houses write their own terms, so read the ones for the sale you are in. A useful checklist for any lot:

Does the description name who graded or authenticated the item, with a certificate number you can look up yourself?
Are flaws mentioned, or only strengths? Silence is not a clean bill.
Have you asked for a condition report and for extra photographs of the corners, back and any signature?
Are the measurements, edition and year stated, or only a vague title?
Is there an estimate range, and do you understand the reserve rules for this sale?

Buyer's premium: how it is built

Christie's says the buyer's premium "is a percentage of the final hammer price that the buyer pays in addition to the hammer price." Its page on auction fees adds that it "is structured in tiers, meaning the percentage rate may differ depending on the price band," and that the total cost is "the hammer price + buyer's premium + any applicable taxes or shipping charges." Its FAQ says the premium "varies by hammer price, auction location and category." That structure, a percentage on top of the winning bid that can change by price band, is the common pattern to expect. The percentages differ from house to house and change over time, so we are not quoting any here. Find the schedule for the specific sale, and use any cost calculator on the lot page before you bid. Christie's mentions such a calculator for "an estimate" of premium and shipping.

We tried to read the published terms of Heritage, Goldin and Sotheby's for this guide. Heritage's site blocked automated access, and we could not locate or load the relevant pages for Goldin and Sotheby's. We make no claims about their structures. The same advice holds: read the buyer's premium and conditions of sale on their own sites before you register.

Reserve, and what the law says about it

A reserve is a minimum price below which the seller does not have to sell. Christie's says that in both live and online sales, "if the final bid meets or exceeds the reserve price, the work is sold," and that for an absentee bid, "if your bid is more than the reserve, the auctioneer will try to win the lot for you at the lowest price they can." The Uniform Commercial Code, as published by Cornell's Legal Information Institute, sets the default rule in section 2-328(3): a sale by auction "is with reserve unless the goods are in explicit terms put up without reserve." In an auction with reserve, "the auctioneer may withdraw the goods at any time until he announces completion of the sale." The UCC is a model law that each state adopts, sometimes with changes, so confirm your state's version.

Shill bidding

Shill bidding means bids placed by or for the seller to push the price up. UCC section 2-328(4) addresses it directly: "If the auctioneer knowingly receives a bid on the seller's behalf or the seller makes or procures such a bid, and notice has not been given that liberty for such bidding is reserved, the buyer may at his option avoid the sale or take the goods at the price of the last good faith bid prior to the completion of the sale." Note the exception in that text: the rule applies unless notice was given that such bidding is reserved, and it does not apply to a forced sale. Read the conditions of sale for any statement about the house or the seller bidding. We did not find a separate FTC page on shill bidding to cite, and state attorneys general may have their own rules.

Bids are binding, and returns are limited

Christie's FAQ says "you cannot cancel a bid once it has been submitted," and that "each bid you place enters you into a binding contract." The UCC text says a bidder may retract a bid "until the auctioneer's announcement of completion of the sale," and the sale is complete when the auctioneer announces it by the fall of the hammer or in other customary manner. Those two statements come from different sources and different contexts, so the house's own terms decide what you can do once you have bid online. Combine that with "as is" sales and the lesson is plain: do your checking before the bid, not after.

Return and dispute rules are set by each house's conditions of sale. We did not read a return policy for any house, so find the section on authenticity, descriptions and disputes in the terms you accept at registration. Ask whether the house offers any remedy if an item proves to be a fake or is described wrongly, what the time limit is, and who you contact.

Payment and shipping

Christie's says that after a win you pay through your account, with online checkout for orders "up to US$100,000" and other arrangements, including bank transfer, for larger totals. It notes lots may take "up to 48 hours" to appear for online checkout. Shipping is through approved shippers, your own carrier or pickup, and for the checkout quote option, items "are usually delivered within 7-14 business days of payment clearance." Other houses will differ. On how you pay, the FTC says to "never pay someone who insists that you can only pay with" cryptocurrency, a wire transfer service, a payment app or a gift card. A real auction house will have a standard checkout, but if a "private seller" contacts you after a lot closes and asks you to pay outside it, treat that as a warning.

What to do next

Before your next bid, open the sale's terms and write down the buyer's premium schedule, the reserve policy, the condition report process, the payment deadline, and the shipping options. Then work out your all-in limit: hammer price plus premium plus tax plus shipping. Bid to that number, not the hammer.

Sources

Christie's, Understanding auction fees, checked 2026-11-10
Christie's, What are condition reports?, checked 2026-11-10
Christie's, How do auction houses work?, checked 2026-11-10
Christie's, Frequently asked questions, checked 2026-11-10
Cornell LII, Uniform Commercial Code 2-328, Sale by Auction, checked 2026-11-10
FTC, How To Avoid a Scam, checked 2026-11-10

General information only, not legal, tax, appraisal or investment advice. Prices, fees and policies change; confirm with the company or a qualified professional before you act.

Frequently asked questions

Is buyer's premium included in the hammer price?: No. Christie's says it is a percentage paid in addition to the hammer price, so the total is hammer price plus premium plus any applicable taxes or shipping. Rates and tiers differ by house, so find the schedule for your sale.
What does 'sold as is' mean?: Christie's says lots are sold as is, in the condition they are at the time of sale, and that condition reports are for guidance only. Request the report and extra photos before you bid.
Is shill bidding illegal?: UCC 2-328(4) gives the buyer the option to avoid the sale or take the goods at the last good faith bid if the seller or auctioneer knowingly bids on the seller's behalf and notice of that liberty was not given. States adopt the UCC with variations and may have other rules, so check yours.
Can I retract or cancel a bid?: It depends on the terms. The UCC text lets a bidder retract a bid until the auctioneer announces completion of the sale, while Christie's FAQ says a submitted bid cannot be cancelled and is a binding contract. Read the house's conditions before you bid.

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General information only, not appraisal, tax, legal or investment advice. Prices, fees and policies change; confirm with the company or a qualified professional before you act. CollectorsTrend does not grade, authenticate, buy, sell or endorse any business listed. Sponsored placements are paid and always labeled.