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The “Hammer Price” is so named referring to the final amount bid and called by the auctioneer at the fall of the hammer.

Of course, a gavel or hammer is not always used by the auctioneer to call the final bid. The auctioneer may simply call sold or use other methods such as clapping hands, slapping the leg, using a stick, and so on. Whatever the method used by the auctioneer the final bid is still referred to as the hammer price.

In the world of online auctions, the final closing bid is also referred to as the hammer price.

BUYERS FEES & TAXES

In many auctions including those facilitated by Hinter Auctions, the hammer price does not include fees such as a buyer’s premium and taxes such as GST that may be applicable. These fees (if applicable) are usually added to the hammer price on invoicing. It is worth noting that any additional fees and taxes are added to the hammer price separately and not compounded on top of each other.

For example, if the hammer price is $100 and a 10% BP + 10% GST applies the final invoice amount will be $120.00.

Please note – Under QLD Office of Fair Trading rules any additional fees must be declared prior to the auction or the lot offered. It is the buyer’s responsibility to account for any additional fees when bidding at auction.

SELLERS COMMISSIONS & FEES

A commission is usually charged to the seller and at times additional fees such as listing fees, PPSR checks etc. These fees are deducted from the hammer price.

For example, if the seller’s commission is charged at 10% and a listing fee of $1 applies the settlement amount payable to the seller would equal $89.00.

DISCLAIMER

The fees and commissions used in this post are examples only and do not necessarily reflect the actual fees used at individual auctions. When bidding at auction please refer to the terms and conditions for the actual fees. Sellers fees/commissions are outlined in the consignment agreement.

 

by Richard Hansen

by Richard Hansen

Director/Auctioneer

Richard is a licensed chattels auctioneer and a director of Hinter Auctions based on the Sunshine Coast, Queensland, Australia. He regularly posts updates and useful tips helping visitors understand the value of true price discovery and the auction method of marketing.

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