REA recently announced that effective September 1, 2025, their buyer’s premium (BP) will increase to 23%. In an email to customers, they also shared plans to change auction closing procedures later this summer to end auctions earlier while preserving competitive bidding.
But the key takeaway here isn’t about bidders; it’s about consignors. BPs are how auction houses protect their margins while aggressively chasing high-end consignments. At the top of the market, sellers often expect not only zero seller’s commission but a piece of the BP itself. This dynamic forces auction houses to shift more of the burden to buyers, allowing them to offer higher percentages to consignors.
REA’s move signals an effort to better compete with the other card auction houses by embracing that model. While the buyer’s premium technically shouldn’t impact what anyone makes, since buyers factor it into their valuations (Bid + BP + Tax + Shipping ≤ Item value), it creates the flexibility needed to entice top consignments.
So, again, while the headline news affects buyers, the real story is about attracting consignors, just like in the rest of the high-end auction industry (art, cards, coins, etc.). REA is using a proven model: shift the costs to buyers to win the best material.
Happy collecting!
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