Sotheby’s Adjusts Buyer’s Premiums Amid Market Changes

Sotheby’s has recently revised its buyer’s premium fees globally, effective February 13, 2026. The new structure increases the premium from 27% to 28% for lots priced at or below $2 million, while maintaining a 22% fee for lots between $2 million and $8 million. The premium for works exceeding $8 million remains at 15%. This adjustment follows similar increases by competitors, including Christie’s and Phillips, which have also raised their fees in response to market conditions.

Sotheby’s hikes buyer’s premiums as auction houses test new fee structures

Christie’s implemented a fee increase in September 2025, setting premiums at 27% for lots up to $1.5 million, 22% for those between $1.5 million and $8 million, and 15% for higher-value works. Phillips currently has the highest buyer’s premium among major auction houses, charging 29% for lots up to $1 million. In contrast, Heritage Auctions maintains a lower 25% premium for lots priced at $1 million and under, positioning itself as a more accessible option in a selective market.

New York ObserverSotheby’s hikes buyer’s premiums as auction houses test new fee structures

The adjustments in buyer’s premiums come as auction houses face challenges from a downturn in the art market over the past three years. The increased fees are seen as a necessary measure to bolster revenue, particularly as lower-priced works have remained in demand despite broader market fluctuations. Sotheby’s and Christie’s reported higher projected revenues at the end of 2025, largely due to private sales and luxury auctions.

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Taylor Curry, director at Heritage Auctions, referred to the trend of rising buyer’s premiums as “Buyer’s Premium Creep.” He highlighted that as buyers become more sensitive to total costs, the increased fees could dampen bidding activity and ultimately affect final sale prices. This sentiment underscores concerns that higher fees may alienate potential bidders, particularly in a market where value perception is critical.

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Sotheby’s has not publicly commented on the specific changes to its fee structure. However, Charles Stewart, Sotheby’s CEO, noted that previous attempts to lower buyer’s premiums led to decreased attractiveness for consignors of valuable works, prompting a reversal of those changes. The auction house is also exploring alternative revenue streams, such as its financial services division, which recently securitized $900 million in art-backed loans.

Sotheby’s hikes buyer’s premiums as auction houses test new fee structuresNew York Observer

• “When buyers become more sensitive to total cost, bidding can cool and that can put pressure on final results,” — Taylor Curry, Director, Heritage Auctions

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• “The transaction was significantly oversubscribed, reflecting strong investor demand and confidence in our disciplined business model and portfolio quality,” — Ron Elimelekh, CEO, Sotheby’s Financial Services

Sotheby’s hikes buyer’s premiums as auction houses test new fee structures

Sotheby’s fee adjustments reflect a broader trend among auction houses responding to market pressures. As competition intensifies and buyer sensitivity increases, the implications of these changes will be closely monitored by industry stakeholders.

New York Observer