SG · International contemporary art platformUnderstanding Auction Estimates
Before an artwork goes under the hammer, auction houses provide an estimate. This is a price range that reflects the auctioneer’s opinion of what the item might sell for, based on factors like artist, condition, and market trends. The estimate is not a guarantee or a limit, but rather a guide for buyers and sellers.
Estimates are typically shown as a low and high figure. Bidding can start below, within, or above this range, depending on interest and competition.
- Low estimate: The minimum expected price.
- High estimate: The upper expected price.
- Actual sale price may fall outside this range.
What Is the Hammer Price at Auction?
The hammer price is the final bid accepted by the auctioneer when the gavel falls. It represents the winning bid, but it is not the total amount the buyer pays.
The hammer price is the key figure you will see in auction results. However, it does not include additional fees or commissions.
- Hammer price = winning bid only
- Does not include buyer’s premium or other charges
Auction Commissions and Buyer’s Premium
In addition to the hammer price, buyers must pay a commission known as the buyer’s premium. This is a percentage added to the hammer price, set by the auction house.
The buyer’s premium can vary, so it is important to check the terms before bidding. Other fees, such as handling or shipping, may also apply.
- Buyer’s premium: a set percentage of the hammer price
- Possible extra fees: handling, shipping, insurance
How to Read Auction Price Listings
Auction price listings usually show the estimate, the hammer price, and sometimes the total price paid (hammer price plus premium). When comparing results or planning a purchase, always consider the full cost, not just the hammer price.
If you are unsure about any term or fee, it is best to ask the auction house or consult a specialist.
- Estimate: price range before the sale
- Hammer price: winning bid at the auction
- Total price: hammer price plus buyer’s premium and fees
Practical Tips for Auction Buyers
Before bidding, review all terms and conditions. Factor in the buyer’s premium and any additional fees to understand your total commitment.
If you have questions about the artwork’s condition, mounting, or conservation, consult a qualified specialist. Avoid cleaning or touching the surface yourself, as this can cause damage. For framing, protective glass can be used if chosen and installed by a professional with proper spacing.
- Read all auction terms carefully
- Calculate your total cost before bidding
- Consult professionals for care and conservation