The hammer falls at £500. You have sold the item. It is tempting to think £500 is on its way to your bank account.

It probably is not.

The amount an auction seller receives is usually the hammer price minus the auction house’s commission, VAT on that commission, lotting or entry fees, and any extra costs agreed for services such as collection, transport, testing, storage or specialist work.

The exact answer depends on the auction house, the sale category and the written terms you accept. But a current Norfolk example shows how quickly the headline figure can shrink.

At Keys Auctioneers in Aylsham, the published standard seller’s commission is 16.5 per cent of the sale price.

Keys also publishes lotting charges ranging from £2.50 per lot for weekly and commercial sales to £10 for fine sales. 

The auction house says these charges cover services including handling, presentation, photography, internet listings and insurance. Its published terms also state that charges are subject to VAT at the standard rate.

The standard UK VAT rate is currently 20 per cent.

So, using the simplest Keys example, a £500 hammer price in a sale with the standard 16.5 per cent commission and a £5 lotting fee would look like this:

Hammer price: £500

Commission at 16.5 per cent: £82.50

VAT on the commission: £16.50

Lotting fee: £5

VAT on the lotting fee: £1

Illustrative amount left: £395

That is £105 less than the hammer price, before any separately agreed collection or transport charge.

This is an illustration, not a universal Norfolk tariff.

A weekly sale, a fine-art sale, a vehicle sale and a specialist auction may all use different rates and most auction houses operate on similar terms.

Some auction houses quote charges inclusive of VAT; others show the VAT separately.

That distinction matters when comparing terms.

It also matters whether you are looking at the seller’s bill or the buyer’s bill.

A buyer may pay a buyer’s premium on top of the hammer price, and possibly an internet surcharge or delivery charge.

Those costs can make the buyer’s final bill much higher than £500, but they do not automatically increase the amount paid to the seller.

 The seller’s settlement is governed by the commission and expenses set out in the vendor agreement.

Norfolk auction listings show why buyers can face several layers of cost.

A February 2026 Norfolk fine-art and antiques sale promoted by Hansons listed a 26.5 per cent buyer’s premium, with an additional 5 per cent plus VAT internet surcharge for bidders using The Saleroom.

 Those are buyer-side charges. They should not be confused with the seller’s net settlement.

The same auction house’s seller terms give a useful comparison:

 17.5 per cent commission plus VAT on sold items, alongside a £5 plus VAT charge per lot whether sold or unsold.

The terms say those charges cover cataloguing, photography and internet coverage.

Again, the published rate is not evidence that every Norfolk auction house uses the same one.

It is evidence that asking for the full calculation before consigning is sensible.

There are other questions hidden behind the phrase “sold for £500”.

Was the item entered as one lot or several?

 A collection split into five lots may attract five entry fees.

Was a reserve agreed?

If the item fails to meet its reserve, some auction houses apply a buying-in or unsold-lot charge.

At Keys, unsold lots are normally handled through further sales under its terms, while the seller is expected to collect unreserved items that do not attract the minimum bid.

Was a collection service needed?

Keys says transport charges may be deducted where agreed.

Other auction houses may charge for testing, certification, specialist photography, storage or withdrawal before the sale.

These costs may be modest for one item and significant for a house clearance, furniture collection or heavy machinery consignment.

There is also the timing of payment. Keys says seller payments are made by BACS within 21 days of the auction for most sales, and within 14 days for weekly sales, after deductions.

Payment may also depend on the buyer paying in full and on the auction house’s own settlement process.

The practical lesson is simple: ask for a net estimate, not just a valuation.

Before signing a consignment form, ask:

• What is the seller’s commission, and is it inclusive or exclusive of VAT?

• What is the entry, lotting or catalogue fee per lot?

• Are photography, internet listing and insurance included?

• What happens if the item is unsold or withdrawn?

• What reserve, testing, storage, collection or transport charges could apply?

• When will the settlement be paid, and what happens if the buyer does not pay?

• Can you show me an example settlement for a £500 hammer price?

That last question is often the most useful.

A reputable auctioneer should be able to explain the arithmetic in pounds and pence, before your item is photographed, catalogued and put in the sale.

This allows you can make the decisions with the full facts.

No one is suggesting auctioneers shouldn't make a profit and their charges are transparent.

But the seller should be fully aware that the hammer price and the cash in the bank they recieve may be significantly different and should do their own due diligence.

Save these questions before consigning an item.

The hammer price is only the start of the calculation.

1. Keys Auctioneers — Terms and Conditions

2. Hansons Auctioneers — Terms and Conditions

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