What does "Buyer's Premium" refer to?

The term "Buyer's Premium" specifically refers to any additional charge that a buyer must pay to the auctioneer or auction firm on top of the winning bid amount. This fee is typically a percentage of the final bid price and is added to the total cost that the buyer owes. It is a common practice in auctions as a way for auctioneers to generate revenue from the sale beyond just the commission received from the seller.

Understanding the Buyer's Premium is crucial for bidders, as it affects the total expenditure when placing bids. It ensures they factor this additional cost into their maximum bid amount. The concept is distinct from other aspects of the auction process, such as discounts or fees paid by sellers, which highlights why this choice is the most accurate representation of the term.