What is known as the "hammer price" in auction terms?

The term "hammer price" refers to the final bid that is accepted during an auction and is confirmed by the auctioneer striking the gavel. This signifies that the item has officially been sold to the highest bidder at that moment. The hammer price is notable because it determines the final sale amount for the auctioned item and establishes the contractual agreement between the seller and the highest bidder.

Understanding the hammer price is crucial for participants in an auction as it directly impacts the financial aspects of the sale, including any applicable buyer's premiums or seller's commissions that may be based on this amount. The significance of this term lies in its representation of a completed transaction in the auction process.