Wine Auction Seller Commission: What You Pay
Updated
When you sell wine at auction, the total cost to you as the seller involves more than the headline wine auction seller commission. Your seller commission is the percentage of the hammer price an auction house retains, and while specific rates are often negotiated, the final amount you receive will be the hammer price less this commission and any other charges. For instance, Christie's charges the buyer a premium of 25% of the final bid price on each lot of wine sold. This buyer's premium is a significant sum a bidder spends on your bottles that never reaches you, the seller. Beyond commission, you may also incur other deductions from your settlement, such as insurance or non-sale fees for lots that do not sell. Understanding these various components is crucial for accurately calculating your net proceeds on every wine you list and making informed decisions about the best strategy for liquidating your cellar.
What is wine auction seller commission charged on?
Your seller commission is charged on the hammer price, the amount the room agreed for your lot. This is the figure before the buyer's premium and any applicable taxes are added. Christie's describes the "hammer price" as "the amount of the highest bid for the sale of a lot via auction." It also states that the buyer's premium for wine is "25% of the hammer price on each lot". The buyer pays it in addition to this hammer price, and it does not form part of the seller's proceeds.
What other fees reduce your net proceeds?
Beyond the seller's commission, other costs impact the final amount you receive for your wine. A significant factor is the buyer's premium, which is an additional charge the buyer pays on top of the hammer price. For wine, Christie's charges a buyer's premium of "25% of the final bid price of each lot." Whatever your wine hammers at, the buyer hands that 25% to Christie's on top, and you never see it. The buyer is also responsible for "any applicable taxes including any sales or use tax or equivalent tax wherever such taxes may arise on the hammer price, the buyer’s premium, and/or any other charges related to the lot," as stated by Christie's. For example, Christie's collects New York sales tax at a rate of 8.875% for any lot collected from Christie's in New York. These are costs that increase the total outlay for the buyer but do not contribute to your net proceeds. To fully understand the all-in cost for a buyer, you can use a landed-cost calculator.
How does buyer's premium affect your sale?
The buyer's premium directly impacts the total amount a buyer is willing to spend, as it adds a significant percentage to the hammer price. Christie's applies a buyer's premium of "25% of the final bid price of each lot" for wine. This means a lot costs the buyer a quarter more than the hammer price before any sales tax. While this premium is a standard part of auction transactions, the buyer pays it directly to the auction house, and it does not contribute to your gross proceeds as the seller. This distinction is vital when you evaluate the true market value of your wine and your potential realised price data. For those looking to understand the full auction process from a buyer's perspective, our guide on how to buy wine at auction offers further insights.
Here is a breakdown of key cost components for buyers:
| Cost Component | Description | Christie's Rate (Wine) | Who Pays |
|---|---|---|---|
| Hammer Price | The winning bid for your lot. | Set in the room, not a published rate | Buyer |
| Buyer's Premium | An additional charge on the hammer price. | 25% of the final bid price of each lot (Christie's) | Buyer |
| Sales Tax | Applicable taxes on hammer price and buyer's premium. | 8.875% for lots collected in New York (Christie's) | Buyer |
What about taxes on your sale?
You may not have to pay Capital Gains Tax (CGT) on the profit you make from selling wine at auction, depending on its classification. GOV.UK states that you may have to pay CGT if you make a profit when you sell a personal possession for £6,000 or more. However, it also clarifies that you do not pay CGT on "anything with a limited lifespan, like clocks - unless used for business." HMRC's Capital Gains Manual further defines "wasting assets" as "chattels (tangible moveable property) which are wasting assets" that are exempt from CGT unless Capital Allowances were or could have been claimed, or TCGA92/S45(3B) applies. The manual notes that "some assets may naturally have a predictable life not exceeding 50 years." If your wine is considered to have a limited lifespan or a predictable life not exceeding 50 years and is not used for business, it may fall under these exemptions. You should consult a tax advisor for specific guidance on your circumstances.
What condition details affect salability and value?
The condition of your wine is paramount to its salability and the price it achieves. Christie's emphasizes that "buyers of old wines must make appropriate allowances for natural variations of ullages, conditions of cases, labels, corks and wine." They also state that "Corks over 20 years old begin to lose their elasticity and levels can change between cataloging and sale. Old corks have also been known to fail during or after shipment." This highlights the inherent risks associated with older vintages. Christie's notes that "there is always a risk of cork failure with old wines and due allowance must be made for this." To provide transparency, Christie's has a "general policy is to open all wood cases and to describe levels." Understanding these factors and ensuring your wine's condition is accurately represented can significantly influence buyer confidence and the hammer price. For more on this, consult our guide on wine ullage levels explained.
Shipping and storage costs for buyers (and implications for sellers)
While the buyer primarily bears shipping and storage costs, they can indirectly affect your sale by influencing a buyer's willingness to bid, especially for international buyers. Christie's states that "Buyers are expected to remove their property within 7 calendar days of the auction." If buyers fail to collect lots within "120 calendar days of the conclusion of the auction," Christie's will store them "at the buyer’s expense and risk with a third party, The Wine Cellarage, at its New York storage location." For domestic shipping, Christie's ships to New York, Florida, New Hampshire, and Wyoming. For shipments to New Hampshire, Christie's collects "a fee of eight percent (8%) of the hammer price plus buyer’s premium (exclusive of sales tax" for filing a report, and for Wyoming, "a fee of twelve percent (12%) of the hammer price plus buyer’s premium (exclusive of sales tax." For other US states, Christie's releases property to a third-party shipper and collects New York sales tax at 8.875%. Internationally, Christie's offers shipping to Hong Kong and London, noting that "Wines may take longer than 30 days to arrive, and Christie’s does not guarantee arrival dates" and "Wines are not shipped during months of extreme heat or cold." These additional costs and logistical considerations are part of the buyer's total expense, which can impact the perceived value of your wine, such as a rare bottle of Dom Pérignon, in different markets.
Understanding all these factors is essential to accurately forecast your net proceeds. We provide tools to help you calculate your net proceeds on every wine you list.