Sothebys and Christies Increase Buyer's Premium

It has just been announced that Sotheby’s auction house  plans to increase its buyer’s premium significantly.

As of 15 March, 2013 Sotheby’s will charge 25% on the first $100,000/£50,000 of sale price, 20% on the portion of hammer price over $100,000/£50,000 up to and including $2m/£1m; and 12% on any remaining amount above $2m/£1m.

In addition to this Christies also recently announced an increase in their buyers premium. They have traditionally charged 25% on the first $50,000; 20% on the amount from $50,001 to $1 million, and 12% on the rest. However, as of March 11, 2013 Christies will charge 25% on the first $75,000; 20% on the next $75,001 to $1.5 million and 12% on the rest.

Australian artist and art consultant AW (Tony) Scott

While some sections of the art buying public are not happy with these increases there's nothing to prevent these two powerhouses of high-end art from making such commercial decisions. The fact that they both announced similar increases within such a short space of time has some pundits crying foul... and who said the economy was tight?