Hammer

Refers to the final price at which a particular lot is sold during an auction. It marks the conclusion of the bidding contest and indicates the successful bidder who has acquired the item. Synonyms for the hammer price are ‘hammer price’ or ‘sale price’. These terms emphasise that the hammer price was traditionally announced by the auctioneer with an auction hammer to confirm the final price. It is important to note that a fee is usually added to the hammer price, known as the ‘buyer’s premium’. The buyer’s premium is a percentage that is added to the hammer price and covers the costs of participating in the auction, running the auction and the auction house’s services. It serves to offset the auction house’s expenses and generate profits. The hammer price together with the buyer’s premium is the total price that the winning bidder must pay for the lot purchased. It is important for bidders to take the premium into account to determine the actual price they will pay for an item.