Technical article

Selling at Auction: What the Seller Pays

At Sotheby's, the house's own glossary gives a standard seller's commission of 10% of the hammer price.

By Neil Solomon · 3 min read

Imagine a family with a painting from a parent's living room. The auction house sells it for US$10,000 at the hammer. The question in the room is simple: how much of that comes to us?

At Sotheby's, the house's own glossary gives a standard seller's commission of 10% of the hammer price. There is a US$500 minimum on any lot whose low estimate is US$5,000 or less, and the minimum applies whether the lot sells or not. On our example, 10% is US$1,000, and the family is paid about US$9,000 before other charges. Sotheby's says it pays within 45 days of the sale once the buyer has paid. It gives a first estimate of value in 15 to 20 days.

That is the standard rate. Another source, a fee directory compiled from rate cards, says Sotheby's does not publish a seller rate and that it is negotiated, often waived on valuable consignments. Both statements can be true. The standard rate is where talks start.

What other sellers report

A consignment-dealer blog models a US$50,000 car at Barrett-Jackson with no reserve. The commission is US$4,000. With an assumed US$750 entry fee, the seller nets about US$45,250. The entry fee is set by day and time of the lot, so a different slot gives a different figure.

The fees that sit beside the commission

The directory says sellers at major houses are charged separately for insurance, photography and shipping. A lot that does not sell can still cost money. In the UK, the hammer price is also the figure HM Revenue and Customs uses as the value for inheritance tax when an estate sells at auction. It is taken before commission, and the costs of selling are not deducted from it.

The buyer's side matters too

Buyers pay a premium on top of the hammer, and these rose in 2026. Sotheby's top tier is 28% up to US$2 million, which dates from February. Christie's matched it on 1 September. Bonhams moves to 30% on the first part of the price from 1 October. One print-market broker argues that buyers work back from the total they are willing to pay, so a higher premium can lower the hammer price. If that is right, the seller absorbs part of the premium without ever seeing it on a statement. It is one broker's view, and the sources do not measure it.

You might say: "A fee of 10% sounds fair. Why look further?" It may be fair. The difference shows up when the fee is a quarter of a modest sale, or zero on a large one. The range in the sources runs from nothing to about a quarter, and the rate on a lot depends on the lot, the house and the day you ask.

You could ask each house three things in writing: the commission on your lot, the extra charges, and the date you would be paid. You could also ask what happens if the lot does not sell, since unsold lots are "bought in" and the options are to take it back, offer it again or sell privately.

Who in your family has sold something at auction, and what surprised them on the statement? Share it here. Someone may be glad to hear it before they sign.

Figures are estimates for planning, based on public data. Date read: October 2026.