The hammer price is the number the auctioneer calls when the lot is knocked down, or, in a timed online auction, the highest bid standing when the lot closes. It is the price at which the sale contract between the auction house and the buyer is formed. Everything else on the invoice is calculated from it.
What is and is not included
The hammer price does not include:
- the buyer’s premium, which the auction house adds as a percentage of hammer
- sales tax or VAT, which in most jurisdictions is charged on hammer plus premium
- shipping, insurance and handling
- any marketplace or online bidding fee charged to the buyer
Auction houses report results in two ways. “Hammer total” is the sum of hammer prices across the sale. “Price realised” or “sale total” is usually hammer plus premium, and is the larger figure that appears in press releases. When comparing results between auction houses, check which one is being quoted.
A worked example
A lot sells for a hammer price of $1,000 at an auction house charging a 20% buyer’s premium and a 10% seller’s commission.
| Line | Amount |
|---|---|
| Hammer price | $1,000 |
| Buyer’s premium (20%) | $200 |
| Buyer pays (before tax and shipping) | $1,200 |
| Seller’s commission (10% of hammer) | $100 |
| Consignor receives | $900 |
| Auction house keeps | $300 |
If the same sale ran on a marketplace charging the auction house a 5% commission on online hammer, the auction house would pay a further $50 on this lot, and the marketplace would usually add its own fee to the buyer’s $1,200 as well. That is why marketplace fees are always discussed in terms of hammer; see our guide to LiveAuctioneers alternatives for the full cost comparison.
Where the hammer price lives in the software
In an auction management platform, the hammer price is recorded against the lot and the winning bidder the moment it is struck. Circuit’s live auction software pushes it from the clerk console into the invoice, and the consignor settlement statement draws on the same figure, so the buyer’s invoice and the consignor’s statement can never disagree about what a lot made.
