What is the purpose of a "buyer's premium" in an auction?

The buyer's premium serves as an additional fee that is charged on top of the winning bid during an auction. This practice is standard in many auction houses and is a way for the auctioneer to generate revenue beyond the commission taken on the sales. The premium is usually a percentage of the final bid amount and is payable by the winning bidder at the close of the auction. This fee helps cover the costs associated with conducting the auction, including marketing, staffing, and logistics. Knowing about the buyer's premium is essential for bidders to understand the true cost of their purchases during an auction.