Discover new artists. Find great contemporary pieces. Bid and buy at auction with confidence.

Mika Tajima, Entropy Series placed with a private client (via Kayne Griffin Gallery, LA) (photo credit: Katarina Kojic)

I’ve been an art advisor and collector for over 15 years - helping clients buy and sell works from galleries, privately, and at auction. There is nothing more enjoyable than igniting a passion in my clients for great contemporary art. I want this newsletter to provide a simple and straightforward way to introduce artworks of excellent quality and value. Additionally, I feature works coming up for sale at auction that I feel represent exceptional value. The auction world is usually where I encounter the most questions and concerns from clients. Is the work over-priced? Is it a quality piece? Does it have condition issues? The Shortlist is my way of passing on the knowledge I’ve acquired by giving collectors, new and experienced alike, the tools they need to bid and buy confidently at auction.

- Fred Perlberg

Have a question? Want to know more? Email me at fred@theperlbergshortlist.com

Auction Know How

The ABCs of Buying at Auction. The Costs, Fees and Taxes involved.

The Hammer Price for a lot is the amount of the winning bid, aka what causes the hammer or gavel to go down. However, when you buy at auction there are other expenses that need to be paid. They are:

Buyer’s Premium – This is the Auction House’s commission. Currently they charge 25% of the Hammer price up to and including $400,000.

Sales Tax – depends on the county that the work gets transported to, but it is typically between 8.5% and 9% of the Hammer Price.

And my fee will be 10% of the Hammer Price, which will include a personalized bidding strategy for every piece, as well as the convenience of bidding, arranging payment, and shipment of the artwork.

For example, let’s say a painting at Sotheby’s has a hammer price of: $20,000.00

Hammer =                                                                                         $20,000.00

Buyer’s Premium (25% of hammer) =                                        $5,000.00

Sales Tax (varies based on county and state) of 8.75% =      $1,750.00

Perlberg Fee (10% of hammer) =                                                $2,000.00

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Total Transaction Cost.                                                                 $28,750.00 (plus shipping)

 

Translation, the cost to buy this painting is roughly 45% higher than the Hammer Price.