You have spent weeks immersed in research, attending previews, and meticulously studying the catalogue. When the moment arrives for you to bid on the coveted lot, the hammer ultimately falls in your favor at €10,000. Congratulations, you are the winning bidder! Yet, how much will you ultimately pay? For many first-time auction buyers, the disparity between the hammer price and the final invoice can arrive as an unwelcome surprise. Grasping the total acquisition cost before you bid is crucial to making informed collecting decisions.

At LLB Auction, we prioritize transparency regarding costs, as it is fundamental to our operations. We believe informed buyers are empowered to make better decisions. Clear communication about fees fosters the trust that is essential for building long-term relationships.

The Hammer Price Is Just the Beginning

The hammer price, which signifies the moment the auctioneer's gavel falls, represents merely the base cost of your acquisition. To ascertain your actual payment, you must consider several additional elements that apply to nearly every auction purchase worldwide.

The most significant of these components is the buyer's premium—a fee levied by the auction house on top of the hammer price. This premium compensates the auction house for an array of essential services: cataloguing, authentication, marketing, photography, preview exhibitions, bidding infrastructure, payment processing, and expert consultation throughout the buying journey.

LLB Auction's Buyer's Premium: Clear and Competitive

At LLB Auction, we maintain a buyer's premium of 20% on the hammer price. This rate is transparent, consistent across all lots, and exceptionally competitive within the contemporary art auction landscape.

To illustrate how it works in practice:

  • Hammer price: €10,000
  • Buyer's premium (20%): €2,000
  • Subtotal before taxes: €12,000

This straightforward structure ensures you are always aware of your total cost before placing your bid. There are no hidden tiers, surprise escalations, or complex calculations required. The hammer price plus 20% provides your pre-tax total.

What That 20% Covers — And What It Doesn't at Other Houses

Our 20% buyer's premium encompasses services that certain auction houses frequently charge separately—a noteworthy distinction when evaluating costs across the market.

At LLB Auction, the following services are included at no additional charge:

  • Professional artwork valuation and estimation — Our specialists provide expert appraisals and pre-sale estimates free of charge, regardless of whether you ultimately consign the work for sale.
  • Professional photography — Every piece consigned to LLB Auction is photographed by seasoned art photographers at our expense. High-resolution images feature in our catalogues and marketing materials, ensuring your work is showcased to the highest standard.
  • Condition reporting — Detailed assessments of each work’s condition are prepared and made available to prospective buyers upon request, at no cost.
  • Cataloguing and research — Our experts dedicate significant time to researching provenance, exhibition history, and literature references for every lot. These services are part of our standard process.
  • Marketing and promotion — Your consigned work benefits from our comprehensive marketing framework, encompassing digital campaigns, catalogue distribution, and outreach to our global collector network.

In contrast, some auction houses impose additional fees for services like professional photography, detailed condition reports, or enhanced marketing—costs that can accumulate to hundreds or even thousands of euros for consignors. At LLB Auction, we include these essential services within our standard offering because we believe they are vital for achieving the best results for every work we handle.

Taxes: The Variable You Need to Understand

Beyond the buyer's premium, taxes represent the next considerable component of your total cost. The specific taxes applicable depend on various factors, including your location, the origin of the artwork, and relevant VAT regulations.

For buyers based in the European Union purchasing works within the EU, VAT (Value Added Tax) generally applies to the buyer's premium at the standard rate for your country. In Luxembourg, the current rate is 17% on the premium portion.

Utilizing our earlier example:

  • Hammer price: €10,000
  • Buyer's premium (20%): €2,000
  • VAT on premium (17% of €2,000): €340
  • Total cost: €12,340

For international buyers or works imported from outside the EU, additional customs duties and import VAT may apply. These charges can vary significantly depending on the destination country and the declared value of the work. Our team is equipped to provide guidance on the probable tax implications of your specific situation prior to bidding.

Additional Costs to Consider

In addition to the buyer's premium and taxes, several other potential expenses should be integrated into your acquisition budget:

Shipping and insurance — If you do not plan to collect the work in person, arranging for shipping is essential. Costs vary based on the size, fragility, and destination of the work. For a medium-sized painting shipped within Europe, anticipate costs between €200 and €800; international shipping may incur significantly higher charges. Insurance during transit is crucial, typically costing 1-2% of the work's declared value.

Framing and presentation — Works sold unframed or with compromised frames may necessitate professional framing upon purchase. Quality custom framing for contemporary pieces can range from €500 to €3,000 or more, contingent upon size and specifications.

Conservation and restoration — If you acquire a work that requires conservation treatment—such as cleaning, stabilization, or restoration—the fees charged by professional conservators can be considerable. Always meticulously review the condition report and incorporate potential conservation costs into your bidding strategy.

Storage — If you cannot immediately take possession of your purchase, short-term storage at the auction house may be available, often incurring daily or weekly fees following a brief grace period.

A Worked Example: What You Actually Pay

Let us walk through a comprehensive example to elucidate total acquisition costs:

You are bidding on a work by Mira Langston, with a hammer price estimate of €8,000-€12,000. You determine your maximum bid is €10,000, and you secure a victory at that price.

Your costs:

  • Hammer price: €10,000
  • Buyer's premium (20%): €2,000
  • VAT on premium (17%): €340
  • Shipping and insurance (estimated): €400
  • Professional framing (if required): €800
  • Total acquisition cost: €13,540

This amount reflects a 35% increase from the hammer price—a substantial difference that must be considered in your bidding strategy. If your effective budget ceiling is €13,540, your maximum hammer price bid should approximate €9,400, rather than €10,000.

Why Transparency Matters

The art market has historically functioned with a degree of opacity surrounding costs—a culture that does little to benefit either buyers or sellers. At LLB Auction, we consciously strive to operate differently.

Our 20% buyer's premium is explicitly stated in every catalogue and on our website. Our included services—comprising free valuations, professional photography, condition reports, and expert cataloguing—are clearly delineated so consignors know what they are receiving. Furthermore, our team remains readily available to guide buyers through the complete cost calculation before they place a bid.

This method engenders trust—and trust, over time, cultivates enduring relationships with collectors who return to us for future acquisitions and consignments.

How We Compare

When appraising auction houses, it is prudent to compare not solely the buyer's premium percentage, but the total value proposition. A house charging 25% but offering limited included services may ultimately prove more costly for consignors than one charging 20% with comprehensive support. Similarly, a house presenting a 15% buyer's premium while separately charging for photography, condition reports, and marketing may cost both buyers and sellers more through cumulative fees.

At LLB Auction, our model is designed to be transparent: competitive rates, comprehensive included services, and clear communication throughout the entire process.

Conclusion

Understanding the true cost of an auction purchase is not complicated—it simply necessitates awareness of the components beyond the hammer price. The buyer's premium, taxes, shipping, and potential post-purchase costs all play a critical role in determining your total investment in a work of art.

At LLB Auction, we are devoted to rendering this calculation as transparent and predictable as possible. Our 20% buyer's premium, our extensive included services, and our commitment to discussing costs candidly before you bid all exemplify our belief that informed collectors make better decisions—and that such decisions lead to more gratifying, enduring relationships with the art they acquire.

Have questions about costs or desire a detailed breakdown for a specific lot? Contact our specialists at LLB Auction. We are proud to offer free valuations and expert consultations with no obligation.