§ 01
Three numbers that are easy to confuse
When a lot sells at auction, three figures are involved. They are related but not interchangeable, and most misunderstandings come from mixing them up.
| Term | What it is |
|---|---|
| Hammer price | The winning bid when bidding closes, before anything is added |
| Buyer premium | A charge the buyer pays on top of the hammer price, at the rate in that event’s terms |
| Consignor share | The part of the hammer price due to the consignor under the written agreement |
§ 02
How it works at Kept & Rare
The specific share within that range, and any other terms, are agreed in writing for each consignment. An inquiry does not set a rate, and nothing on this page is an offer.
§ 03
An illustrative example
Suppose, purely to make the arithmetic visible, a lot closes at a hammer price of $1,000 and a hypothetical agreement sets the consignor share at 90%. The consignor share of hammer would be $900. The buyer separately pays whatever buyer premium that event’s terms set, on top of the $1,000. That premium is not part of the consignor’s figure.
§ 04
Questions to settle in writing
A written agreement exists so that both sides understand the same thing. Before signing any consignment agreement, with any house, make sure it answers these clearly.
Checklist · Your agreement should say
- Exactly which items are included, ideally with an inventory
- The consignor share, and that it is calculated on hammer price
- Whether any other charges apply, and how they are calculated
- Whether reserves will be used and how they are agreed
- What happens to items that do not sell
- How settlement is calculated and the conditions for it, such as cleared buyer payment
- Who is responsible for the items while in storage and transit
- How either party can withdraw, and on what terms
§ 05
From hammer to settlement
- 01
The auction closes
Official results record the hammer price for each lot.
- 02
Buyers are invoiced on HiBid
Invoices include hammer, buyer premium and applicable charges.
- 03
Buyer payment clears
Settlement waits for cleared payment, not just a winning bid.
- 04
Settlement under the agreement
The consignor share and any agreed terms are applied as written.
§ 06
What an inquiry will not tell you
- A sale price or estimate. Kept & Rare does not quote values from an inquiry.
- A sale date. Scheduling depends on research, cataloging and auction planning.
- Acceptance. Nothing is accepted until terms are agreed in writing.
You are free to ask questions and decide not to proceed at any point before signing.