Auction Seller Fees: A Comparison Guide

Two auction houses can quote similar commission rates but leave you with vastly different net proceeds. The difference lies in what's included in their proposals. Here's how to compare them effectively.

The Three Types of Auction Fees

Seller's Commission: A percentage of the hammer price that is deducted from your proceeds. This rate may be on a sliding scale based on the item's value and is often negotiable.
Buyer's Premium: A fee added to the hammer price and paid by the winning bidder. While it doesn't directly reduce your payout, a high buyer's premium can influence how much a collector is willing to bid.
Ancillary Fees: These can include charges for shipping, insurance, photography, cataloging, restoration, or framing. This is where the biggest discrepancies between auction houses are often found.

How to Calculate Your Net Payout

Seller's Net Payout = Hammer Price – Seller's Commission – Ancillary Fees (including any applicable taxes).

For example, let's say an item sells for a hammer price of €1,000. With a 15% seller's commission and €50 in ancillary fees, your net payout would be €800. However, with a lower 10% commission but €120 in fees, your payout drops to €780. The lowest commission rate isn't always the most profitable option. (Note: MDP Auction invoices in euros; US dollar figures are indicative only.)

Questions to Ask Before Consigning

What is the seller's commission percentage, and is it calculated on the hammer price?
What ancillary fees are charged, and which services (e.g., photography, insurance) are included in the commission?
What is the reserve price, and what are the fees or procedures if the item does not sell?
How soon after the auction will I receive payment?
Are all terms and conditions provided in a written consignment agreement?

What You Can Negotiate

The seller's commission, especially for high-value items or a large collection.
Ancillary fees like photography, cataloging, and shipping. Always ask what's included by default.
The reserve price and the terms for unsold lots (e.g., re-offering the item or its return).
The payment schedule. This should be clarified before you sign the agreement.

Commonly Overlooked Fees

Unsold lot fees: Charges for withdrawing an item or for re-listing an unsold lot can apply at some houses.
Expert fees: Specialist or research consultation fees for certain categories of items.
Insurance: Coverage during transport, storage, and exhibition might be billed separately.
Taxes and levies: Depending on the country and item, fees like artist's resale rights may be applicable.

These costs vary significantly between auction houses, so always read your consignment agreement carefully before signing.

A Side-by-Side Comparison

Let's compare two hypothetical scenarios for an item with a hammer price of €2,000:

Auction House A: 15% seller's commission (€300) plus €100 in ancillary fees. Your net payout is €1,600.
Auction House B: 10% seller's commission (€200) plus €250 in ancillary fees. Your net payout is €1,550.

In this case, the lower commission rate results in a smaller final payout. Always compare the estimated net proceeds, not just the commission percentage.

The MDP Auction Advantage

At MDP Auction, we offer a transparent and highly competitive fee structure. For collectors who create a free account before December 31, 2026, we charge 0% seller's commission and 0% buyer's premium—for life. We also cover standard shipping costs (any customs duties or import taxes are the buyer's responsibility). After this introductory period, our fees will be a simple, low 10% for life for these members. You receive payment within 48 hours of us receiving the buyer's cleared funds. By comparison, total fees at many traditional auction houses can reach 25-30% of the hammer price.

This 0% buyer's premium encourages collectors to bid higher, maximizing your potential return. Submit your item through our consignment form for a complimentary valuation. To compare auction houses on other criteria, see our article on modern alternatives to traditional auction venues like Drouot in Paris.

Frequently Asked Questions

Is the seller's commission always a percentage? Usually, yes, though sometimes a minimum fee per lot applies. Always ask for the complete fee schedule.

Who pays the buyer's premium? The buyer. This fee is added to the hammer price and does not reduce your net proceeds.

What's the best way to compare two consignment proposals? Calculate your estimated net payout from each, using the same hypothetical hammer price for both.

Understanding Seller Fees: How to Compare Auction Houses