In the name of simplicity, buyers will shoulder a 20% premium when hammer is up to and including $6 million. Any portion exceeding $6 million, buyer will be charged an extra 10%.
Sellers will pay 10% on the first $500,000 of the Hammer price per lot when sold for $5 million or less. However, there is a minimum fee of $500 seller’s commision to any lot with a low estimate of $5,000 or less that does not sell. > $5 million up to and including $20 million, seller’s commission is 0 dollars. >$20 million up to and including $50 million, fee is waived plus 40% of buyer’s fee will be remitted to seller. More than $50 million will be individually negotiated. Seller terms apply for all auction consignments of non-guaranteed property.
Additionally should the Hammer price exceed the high estimate, 2% of the hammer price will be awarded to the seller.
For guaranteed works, Sotheby’s will introduce a fixed guarantee commitment fee of 4% of the guarantee amount, chargeable to the seller.
Consignments signed after April 15, 2024 will enjoy the new fees for seller. May 20, 2024 marks beginning of new buyer premiums globally, excluding cars, real estate, wine and spirits.
Sotheby’s will also no longer charge an Overhead Premium, which was previously a 1% administrative fee on all sales.
Savvy collectors may be wondering just how long similar fee shifts will migrate to other major and minor auction businesses. Competition for top lots often is swayed by advantageous consignment fees.
Sotheby’s minimum of $500 for unsold lots when properties are estimated below $5,000 will likely discourage consignment of less valuable properties.
Corinne Cain of SavvyCollector.com