Buyer's premium
Also called buyers premium
A buyer's premium is a fee an auction house adds on top of the winning bid, paid by the buyer as a percentage of the hammer price.
It means the buyer's total cost is higher than the hammer price, and published auction results often include it. The seller doesn't receive the premium, and usually pays a separate seller's commission.
When using auction results as comps, work out which number you're looking at: the hammer price, the price including premium, or what the seller actually received.
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Learn the trade, not just the word
Plain-English guides to buying, pricing and selling watches as a business. Free, and written to be used at the counter.