Buyer’s Premium: I’ve heard of it, but I don’t fully understand it

Find out how Buyer’s Premium affects you and why you should fully embrace it

Over the course of 16 years Lloyds Auctioneers and Valuers have developed into one of Australia’s premier auctioneering and valuation firms.

Lloyds Auctions was founded by Andrew Webber as a family business in 2004 and the company is now led by Lee Hames. 

Over the years, the core family business values that Andrew held dear from the beginning have continued to grow with Lloyds as we established ourelves in the marketplace. This means seamless customer service to you, our vendor (and our bidders), is at the forefront of what we do.

You are assured of great service because we adhere to our core values and strengths of honesty and dedication. These have helped shape and develop us as a business and is an integral part of our success. 

What do Lloyds Auctions do?

We pride ourselves in many different areas ranging from classic cars, heavy equipment, agriculture, transport, mining, fine art, portable buildings to consumer goods, just to name a few. There is sure to be someone to help you, no matter what you are looking to sell!

Lloyds Auctions cover all forms of auctioning including online, simulcast and traditional (both in-room and onsite) creating the perfect environment for items to go under the hammer.

We actively operate throughout all Australian states through our 10 dedicated auction facilities. Lloyds Auctions have offices all over Australia ranging from Northern Queensland down to Coffs Harbour, Sydney, Melbourne and Perth, with our head office located in Brisbane. 

We aim to be no more than 3 hours away from you no matter where you are on the East Coast! You can bid confidently knowing you are supporting an experienced and established Australian company.

We are continually expanding into the international market with many campaigns gaining high interest with bidders in Europe, America and Asia.

You can bid confidently knowing you are supporting an experienced and established Australian company.

Is Buyer’s Premium normal?

Part of being an auction house means we have something called Buyer’s Premium which is commonplace within the auction industry.

The buyer’s premium is an additional charge on top of the winning bid amount that is paid by the winning bidder.

The buyer’s premium dates right back to the Roman times during the reign of Augustus, when buyers were required to pay a 1-2% tax on their auction purchases!

The modern buyer’s premium was introduced at 10% by Christie’s and Sotheby’s in London in September 1975 and has now become common practice across the industry including real estate auctions.

Our Buyer’s Premium ranges from 12.5% to 22% depending on what kind of auction it is and what you are buying.

Where does the money go?

Buyer’s Premium is a necessary contribution to the costs of the administrative auction process.

Buyer’s premium allows us to cover costs associated with running our auction house and our ongoing auctions, making it even better for you.

There are many costs that go into an auction house that wouldn’t even occur to you!

These include building rental, online auction software, advertising and marketing, staff wages, auction house set-up, time spent taking pictures and creating on-line auctions, and general upkeep of electronic equipment and our premises.

When bidding in one of our auctions, you should keep in mind that the buyer’s premium is used to enhance your customer experience. The extra charge is always put to good use.

However, we never charge any premiums or fees of any kind in our charity auctions. There is zero costs and zero fees, allowing all proceeds to go directly to the nominated charity.

It costs nothing for a vendor to donate an item, service or experience to one of our Charity Benefit auctions.

It will also cost you nothing extra on top of your bid if you win an item, and 100% of your winning bid amount will go straight to where it is needed.

Why should I bid with Lloyds?

The buyer’s premium is an additional charge on top of the winning bid amount that is paid by the winning bidder.

For example, if your bid is successful at winning a lot at $100.00 and there is a 16.5% buyer’s premium on that item, then you will pay a total of $116.50. Double check the auction details because buyer’s premium can vary from lot to lot!

A good way to check how much you will be paying if you win an item is by checking the Estimated Maximum Commitment that is calculated for you when you enter a bid amount prior to pressing the “Bid for …” button to confirm that bid.

We like to be super transparent so everything from the percentage to the total price is calculated for you before having to commit to anything!

We drop the hammer on over 33,000 items every week! We bring big brands, surplus stock, salvaged or superseded items, rare and premium products to market. 

And the best part? A lot of the time, prices are decided by you! 

Our Queensland and New South Wales auction rooms alone, are some of the largest in Australia. We boast a total of 28,000 sqm of fully fenced property which is constantly filled with our confident vendors’ stock and assets, so come down and check us out today!

Looking for additional support? Have questions you need answered?
Our support staff are here to help you, simply click on an icon below to get in-touch with us.

Matt Kalinski

Head Of Valuations

Qualifications & Affiliations

American Society of Appraisers Candidate Member

Certified Practicing Valuer AVAA


Matt has been in the valuations space for many years and has extensive experience in the space across an abundance of various industries. He now leads the valuations teams for Lloyds Auctions with a passion for encouraging his team to set and achieve high goals and produce great results for the company whilst growing the team’s skills starting with a great culture and team mindset.