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#11
11-14-2006, 09:25 AM
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Mastro has raised Buyer Premium to 20%
Posted By: barrysloate
I think one way to look at the buyer's premium is to simply say if a lot is worth $1000 to me, my top bid will be $800. Isn't that the same as bidding $850 in a 15% auction? I think one of the reasons buyer's premiums are going up (besides the obvious profit margin) is that auction houses want to be able to offer selling fees as close to 0% as possible. That makes them look more competitive. Nobody likes to see these premiums go up but it is clearly a trend. 
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