Auction Premium
nounauc·tion pre·mi·umpronounced OK-shən PREE-mee-əm
Last reviewed 16 April 2026
What does the noun Auction Premium mean?
The difference in sale price between comparable properties sold by auction versus private treaty, attributed to the competitive, time-pressured nature of the auction mechanism. Whether a genuine premium exists after controlling for selection effects is contested in the academic literature.
How the noun Auction Premium is used
Some agents claim auctions get a higher price, but the auction premium is debated — it may just be that higher-quality properties tend to go to auction.
Related words
Cite this entry
MLA citation: "Auction Premium." How to Property, 16 Apr. 2026, https://howtoproperty.com.au/definitions/auction-premium. Accessed 29 May 2026.
Chicago citation: How to Property. "Auction Premium." Last modified April 16, 2026. https://howtoproperty.com.au/definitions/auction-premium.
APA citation: How to Property. (2026, April 16). Auction Premium. https://howtoproperty.com.au/definitions/auction-premium