Auction glossaryHammer Price: What It Means at an Auction
A hammer price is the winning bid on an auction lot at the moment it sells, before anything is added. The buyer's premium and sales tax are figured on top of it and shipping comes after, so you pay more than the hammer price. The seller's commission is usually taken from it too.
Where does the term hammer price come from?
At a live auction the auctioneer ends each lot by bringing down a gavel, or hammer, and the last bid standing is the hammer price. Timed online auctions have no gavel, but the term stuck: it's the high bid when the lot's clock runs out. If bidding never met the lot's reserve, there is no sale and no hammer price.
How much do you pay on a $100 hammer price?
Say you win a lot at $100 at a sale with a 15% buyer's premium and Houston's 8.25% sales tax. The premium adds $15, tax on $115 adds $9.49, and you pay $124.49 before any shipping. Our buyer's premium guide walks through more examples.
How does Auktia show the hammer price?
On Auktia, the hammer price is shown as the winning bid, and as the current bid while bidding is open. Auktia can also show every price all-in, computed on the live bid, so you see the $124.49 rather than the $100. Switch the All-in pricing toggle in the header to see the bids alone.
Questions people ask
Is the hammer price the final price?
No. It's only the winning bid. The final price adds the buyer's premium, sales tax unless you have a valid resale certificate, and shipping if the lot ships.
Does the seller get the full hammer price?
Usually not. The auction house takes its commission from the hammer price and pays the seller the rest, minus any agreed fees.