What does a commission rate in an auction typically refer to?

A commission rate in an auction commonly refers to the fee that is calculated as a percentage of the final sale price of the auctioned item. This fee is typically charged to the seller and is a standard practice in auctions to compensate the auctioneer for their services in facilitating the sale.

This approach aligns with the auction industry practice where the commission is directly linked to the success of the auction—meaning the higher the sale price achieved, the greater the commission earned by the auctioneer. This incentivizes the auctioneer to maximize the sale price for the item, benefiting both the seller and the auctioneer.

The other choices reflect different concepts: a fee for the seller does not fully capture the nature of commission since it may not necessarily be percentage-based; the buyer's premium specifically refers to an additional fee paid by the buyer, separate from the commission; and a fixed price per item does not represent how commissions are generally structured in auction scenarios, as commissions are typically proportionate rather than flat.