What’s the Difference Between an Auction Estimate and the Hammer Price?

The estimate is a published price range showing where we expect a lot to sell, for example £500 to £800. It's there to guide bidders. The hammer price is what the lot actually sells for on the day. Because the final price is set by bidding, it can land within the estimate or above it. That's one of the main benefits of selling at auction.

What is the buyer's premium?

On top of the hammer price, buyers pay a buyer's premium. Our rate is currently 25% + VAT, which is 30% including VAT. For example:

• Hammer price: £100

• Buyer's premium: £25 (25% of £100)

• VAT on the premium: £5 (20% of £25)

• Total: £130

The hammer price goes to the seller. VAT is normally charged on the premium, not on the hammer price.

What is Artist's Resale Right?

Artist's Resale Right (ARR, also called droit de suite) gives artists, and their estates for 70 years after death, a royalty when their work is resold through an art market professional such as an auction house. It applies when a work sells for more than €1,000. Where it applies to a lot, we show it clearly on our website and on your invoice.

The charge is worked out on the hammer price (excluding the premium), on a sliding scale. The auctioneer usually confirms the euro exchange rate at the start of the sale.

• 4% from €1,000 up to €50,000

• 3% from €50,000 to €200,000

• 1% from €200,000 to €350,000

• 0.5% from €350,000 to €500,000

• 0.25% above €500,000

The scale is cumulative, so the royalty is calculated tier by tier. Using an exchange rate of €1.1 to £1:

• A painting with a £3,000 hammer price (about €3,300): the first £909 is below the €1,000 threshold, so the charge applies to the remaining £2,091 at 4%, which is £83.64.

• A painting with an £850 hammer price (about €935): below the €1,000 threshold, so no charge is due.

The total ARR on any single work is capped at €12,500 (in sterling). We collect it and pass it to the collecting agency on your behalf. ARR applies to sales of artworks in the European Economic Area.