When a gavel falls at a major auction house, the hammer price is just the beginning of what the buyer will actually pay. Understanding the full cost structure of auction transactions reveals why an increasing number of serious collectors are seeking alternatives.
The buyer's premium
Every major auction house charges a buyer's premium on top of the hammer price. At the leading houses, this premium follows a tiered structure that typically amounts to 20-26% on the first portion and 14-20% on the remainder. On a $500,000 lot, the buyer's premium alone can add $100,000 or more.
The seller's side
Sellers aren't exempt from fees either. Consignment commissions typically range from 5-15%, depending on the lot value and the seller's negotiating leverage. High-profile consignors may negotiate reduced rates, but the average seller faces meaningful friction.
The comparison
Consider a $1M watch transaction:
**Traditional auction route:** Hammer price $1M + buyer's premium ~$200K + insurance and handling ~$15K = total buyer cost ~$1.215M. Seller receives ~$850K–$950K after commission.
**Curatas Closer service:** Transaction price $1M + 1.5% success fee $15K = total buyer cost $1.015M. Seller receives the full agreed price.
The difference: $200K in savings for the buyer, and the seller retains significantly more of the transaction value.
Beyond the numbers
Cost isn't the only consideration. Auction timelines are fixed — consignors must wait for the appropriate sale, which may be months away. Authentication and cataloguing add further delays. And the public nature of auction results means every competitor in the market knows exactly what you paid.
Private acquisition through a service like Curatas offers timeline flexibility, discretion, and a cost structure that aligns with the buyer's interest rather than the platform's revenue model.