Which term describes the fee paid by the buyer in addition to the auction price?

The term that describes the fee paid by the buyer in addition to the auction price is the buyer's premium. This fee is typically a percentage of the final bid amount and is charged by the auction house as a way to cover its operational costs and generate revenue. It is important for bidders to understand this additional cost because it affects the total amount they will ultimately have to pay if they win the auction.

In various auction settings, the buyer's premium is clearly stated in the auction terms and conditions. It ensures that bidders are fully aware of the costs involved in buying an item at auction. Recognizing this fee is essential for potential buyers to calculate their bids accurately and to ensure that they are bidding within their budget.

The other choices, while related to auction processes, do not refer to the specific additional fee that the buyer pays at auction. The seller's fee pertains to the charges applied to the seller for listing their items, transaction cost can encompass various expenses involved in a purchase besides the auction fees, and final bid tax is not a commonly used term in auction terminology. Thus, knowing that the buyer's premium is a standard practice in auctioning reinforces the understanding of overall auction costs for buyers.