Sotheby’s is walking back the slashes made to its buyer’s premiums just months after it made significant changes to the fee structure.
The auction house announced Thursday that beginning Feb. 17, 2025, it will introduce new terms:
- 27% buyer's premium rate on all items up to $1 million
- 22% buyer's premium rate on all items in between $1 million and $8 million
- 15% buyer's premium rate on all items more than $8 million
In May, Sotheby's announced it was changing its fee structure to give more power and flexibility to buyers.
"Over the past 6 months, we have listened to the market, evaluating the needs and preferences of both our buyers and sellers," the auction house said in a letter reviewed by the Art News.
Previously Sotheby's enforced a 26% rate on items up to $1 million, a 20% rate on items between $1 million and $4.5 million and a 13.9% rate on items more than $4.5 million.
The auction house adapted those fees to include a 20% buyer’s premium on purchases up to $6 million and 10% on the portion of the hammer price above $6 million.
The change, which Sotheby's called "the most significant changes to [its] fee structure in more than 40 years," saved buyers anywhere from 12.3% to 30.4% on purchases.
Collectible data and analysis platform Altan Insights told cllct at the time that consignors could see higher proceeds if prices remained roughly the same but the buyer’s premium was lowered.
According to Sotheby’s, the fees will apply for all categories, excluding automobiles, real estate, and wine & spirits.
The fee structure changes arrive days after Sotheby’s laid off 100 staff members from its New York City office.
This fall, Sotheby’s closed a deal with Abu Dhabi’s ADQ sovereign wealth fund for an investment of nearly $1 billion—$800 million of which was used to pay down the company’s debt, according to the New York Times
Matt Liberman is a reporter and video producer for cllct.