Quote:
Originally Posted by Fullerton
The buyer's premium does seem like a psychological "trick", but it is based more on enabling more clear cut record keeping of actual sale price of an item regardless of auction house and its fees. Historical auction records are relied on for appraisals and insurance.
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Maybe I misunderstand but I take the opposite view. At best is doesn't make a difference and at worst it actually confuses the issue rather than making it clear cut. Appraisals are based on fair market value and include buyer's premiums. So if no auction houses charged a BP, then we'd have an even playing field. Plus I'm not sure if all AH's post completed prices including BP, so an appraiser might be comparing apples and oranges as they research historical prices to determine FMV.