Buying guide

Buying a watch at auction: the buyer’s premium, the condition report, and what the guarantee really covers

Updated October 27, 2026 · Written by the Only for the Wealthy editors · General information, not legal or financial advice

Geneva in November, New York in December: the season when the rarest watches change hands under the hammer. The winning bid is only part of the price, and the catalogue promises less than it seems. Here is how the major houses’ own conditions treat the premium, the tax, the condition report, and the guarantee, so you bid with the composure of a seasoned collector.

Why this matters now

The most important fortnight on the collector’s calendar is about to begin. Phillips’ Geneva Watch Auction XXIV runs November 7 and 8, 2026 at the Hotel President Wilson, with lots 1 to 221 across two sessions and public viewing from November 4 [1]. Its published highlights include a Patek Philippe Ref. 1436 in stainless steel estimated at CHF 2,000,000 to 4,000,000 and a Cartier Portico No. 4 estimated at CHF 1,800,000 to 3,200,000 [1]. And Christie’s moved to a new buyer’s premium schedule on September 1, 2026 [2].

An auction room rewards the prepared. The hammer price is not the price you pay, the catalogue is an opinion rather than a promise, and the guarantee covers less of a watch than most first-time bidders assume. Here is what the houses’ own conditions say, so the paddle goes up only when you know exactly what you are buying.

The real price: hammer, premium, and tax

Every major house adds a buyer’s premium to the hammer price, charged in tiers on a cumulative basis, so each rate applies only to the slice of the hammer price within its band [2][5]. The schedules for watch sales this season, as published by each house:

A worked example, as plain arithmetic on the published rates rather than a quote: a hammer price of CHF 100,000 at Phillips Geneva carries a premium of CHF 27,000 (27%), and VAT of 8.1% on the combined CHF 127,000 adds CHF 10,287, for CHF 137,287 before any export refund [5]. At the top of the market the tiers matter: on a hypothetical $3,000,000 hammer at Christie’s New York, the premium is 28% of the first $2,000,000 plus 22% of the next $1,000,000, or $780,000 [2].

Two cautions. Estimates never include the premium or taxes [4]. And schedules move: the Christie’s New York conditions dated June 6, 2026 that we read still printed the earlier schedule (27% up to $1,500,000) [4], while the house’s financial information page gives the new schedule effective September 1, 2026 [2]. Always use the conditions attached to the specific sale you are bidding in.

Reading the catalogue: opinion, not promise

Christie’s states that its catalogue descriptions and condition reports are its opinion and “not to be relied upon as a statement of fact,” and that lots are sold “as is” without any warranty as to condition by the house or the seller [4]. Its condition reports are free, but they “may not refer to all faults, inherent defects, restoration, alteration or adaptation,” are not an alternative to examining the lot in person or taking your own professional advice, and it is your responsibility to request and read one [4]. Phillips says its knowledge of a lot depends partly on what the seller told it, that it does not carry out exhaustive due diligence on each lot, and that buyers accept responsibility for their own inspections [5].

Watches carry their own notices, and they are worth reading word for word:

• Parts. Christie’s: almost all watches have been repaired in their lifetime and may include parts that are not original; it gives no warranty that any individual component is authentic; a band described as “associated” is not original to the watch and may not be authentic; and a presentation box may not be the original fitted box [4]. Sotheby’s does not guarantee the authenticity of component parts such as wheels, hands, crowns, crystals, screws, bracelets, and leather bands [7].
• Working order. Christie’s gives no warranty that a watch is in good working order or that its manufacturer will accept it for service [4]. Sotheby’s sells watches on the basis of their decorative and historic value, says they should not be assumed to be operative, and says they cannot be returned because repairs were made or parts supplied by someone other than the named maker [7].
• Service refusals. Sotheby’s notes that certain manufacturers will not service a piece unless every part is original, and that a manufacturer’s refusal to service it is not grounds to rescind the sale under its Authenticity Guarantee [7].
• Water resistance. Both houses open most wristwatches to examine the movement, so a water-resistant case may no longer be water-resistant; Christie’s recommends having it checked by a competent watchmaker before use [4][7].
• Papers. Christie’s says certificates are not available unless the catalogue describes them [4].

The practical answer is inspection. Viewings are open to the public free of charge at Christie’s [4], and Phillips Geneva’s viewing runs November 4 to 8 [1]. Sotheby’s advises having a qualified watchmaker inspect any potential purchase before the auction, and since watches may not be taken apart on view, it asks those who want the movement examined to book a private view with the Watch Department the week before the sale [7]. Our guide on how to verify a luxury watch covers what that inspection should check.

What the authenticity guarantee covers, and what it doesn’t

The guarantee is real, valuable, and narrower than its name. The main terms, as each house writes them:

Read together with the watch notices above, the meaning is clear: the guarantee protects you against a watch that isn’t what its heading says it is. It does not protect you against a replaced dial, a service crown, an associated bracelet, or a movement that needs work [4][7]. Those are matters for your own inspection before the hammer falls. The warranty also doesn’t follow the watch if you give it to someone or sell it [4][5], so keep the original invoice with your records.

Registering, bidding, and the symbols that matter

Register early. Christie’s New York asks first-time bidders, and anyone who hasn’t bought from its salerooms in the last two years, to register at least 48 hours before the auction with photo identification and, if needed, proof of address; it may also ask for a financial reference or a deposit [4]. Phillips requires online bidders to register at least 24 hours before the sale, absentee bids must arrive at least 24 hours ahead, and telephone bidding is offered on lots with a low estimate of at least CHF 1,000 [5]. Bidding for someone else? Christie’s requires that person to complete the registration too [4].

In the room, a few rules shape the price:

• The reserve. Most lots have a confidential reserve, which can’t exceed the low estimate unless a third-party guarantee’s irrevocable bid is higher [4][5]. Lots offered without reserve are marked with a • symbol [4][5].
• Bids for the seller. Christie’s auctioneer may bid on the seller’s behalf up to, but not at or above, the reserve, and won’t identify those bids as such [4]. Phillips tells online bidders that “floor” bids on their screen include bids the auctioneer makes to protect the reserve [5].
• Online bids are final. At Phillips, clicking the bid button submits a bid that cannot be amended or retracted [5].
• Financial interests. Christie’s marks lots where it has provided a minimum price guarantee, where a third party has backed that guarantee, or where a party with an interest in the lot may know its reserve, and says such parties may benefit financially from the sale [4]. Read the symbols beside the lot number before you bid.
• Mistakes. If you believe the auctioneer accepted a winning bid in error, Christie’s requires written notice within 3 business days of the auction [4].

Paying, and the days after the hammer

Settlement is fast. Christie’s New York payment is due by the end of the 7th calendar day after the auction, only the registered bidder can pay, and the name on the invoice can’t be changed once issued [4]. Ownership doesn’t pass until full payment clears, and risk passes when you collect or at the end of the 30th day after the auction, whichever comes first [4]. Late payment can draw interest of up to 1.34% per month [4]. At Phillips Geneva, payment is due immediately after the auction, late payment carries interest at 12% a year, and first-time online buyers must pay by wire transfer; returning clients may pay invoices of CHF 100,000 or less by card, with a processing fee [5].

Because payment usually means a large wire, confirm the bank details on the official invoice through a phone number you already know for the house’s post-sale department before sending money, and treat any email asking you to pay a different account as a warning sign (see fake escrow and wire-fraud scams). Christie’s publishes its own post-sale contact details in its conditions [4].

Collection deadlines are short too. Christie’s asks buyers to collect within seven days and may charge storage or move the lot after 90 days [4]. Phillips asks for collection within seven days, puts the risk on the buyer from collection or seven days after the auction, whichever is earlier, and charges CHF 10 per day per lot when a paid lot is left more than 30 days [5]. Arrange coverage before risk passes; our guide to insuring a fine watch explains scheduled coverage.

Bringing it home: straps, VAT, and Illinois use tax

The strap may stay behind. Watches are often photographed on alligator or crocodile straps. Christie’s marks these lots with a Ψ symbol, says the straps are for display only and not for sale, and removes and keeps them before shipment, though at some sale sites it may give the strap to a buyer who collects it in person within a year [4]. Sotheby’s also says these straps are not sold with the watch and may be removed before shipping, and puts export and import compliance on the buyer [7].

Swiss VAT can be refunded, but only on paper. Phillips refunds the 8.1% VAT to a buyer domiciled outside Switzerland only if it receives an export declaration stamped by Swiss customs [5]. Christie’s Geneva issues a VAT-exempt export invoice when its own transport service or an authorized shipper exports the lot; if you hand-carry it or use your own shipper, you pay the VAT first and claim it back with customs-stamped proof of export within three months of the auction (six months via the Freeport) and written confirmation you didn’t use the lot in Switzerland [3]. A late export can’t be refunded [3]. Carrying the watch home yourself also means declaring it to U.S. Customs [10]; our customs guide walks through it, and the VAT refund guide covers retail purchases abroad.

New York sales tax depends on how the lot leaves. Christie’s collects New York sales tax at 8.875% on any lot collected from it in New York, and also when a shipper you hire (other than an authorized common carrier) collects it there, regardless of the final destination; when Christie’s ships the lot out of New York State, New York tax doesn’t apply, though another state’s tax may [4]. Exemption documents are due before release or within 90 days of the sale, whichever is earlier [4]. A lot left uncollected for 90 days is treated as delivered in New York [4].

Illinois collectors owe use tax when no one collects it. If the seller didn’t collect Illinois tax on a taxable item you use in Illinois, you owe Illinois use tax, 6.25% on general merchandise, less any sales tax properly paid to another state [8]. Tax paid to another country earns no credit, so an unrefunded Swiss VAT bill does not reduce what Illinois is owed [8]. If your use tax for the year is more than $600 ($1,200 for joint filers), you file Form ST-44 by the last day of the month after the month of purchase; smaller amounts can go on your IL-1040 [8][9]. The Department says it audits using information from third parties, including U.S. Customs and other states [9].

Before you raise the paddle: a checklist for the discerning collector

1. Download the conditions of sale for that exact sale and note the premium tiers, the VAT or sales tax rule, and the payment deadline [2][3][4][5].
2. Add the premium and tax to your top bid before you set it, and remember the estimate includes neither [4].
3. Request the condition report, read it, and ask follow-up questions in writing [4].
4. Inspect in person or send a watchmaker; book a private view if the movement needs to be opened [7].
5. Read the heading in capitals as the part that is guaranteed, and treat everything after it as opinion [4][5].
6. Read the symbols beside the lot number: no reserve, guarantees, financial interests, endangered-species straps, tariffs [4].
7. Register at least 48 hours ahead if you are new to the house [4].
8. Line up the wire and confirm the bank details by phone before the due date [4][5].
9. Plan the export, collection, insurance, and Illinois use tax before the watch leaves the saleroom [3][4][5][8].

Buying from a dealer or private seller instead? Start with our checklist on pre-owned versus new Rolex or Omega.

Sources

1. Phillips: The Geneva Watch Auction: XXIV, 7–8 November 2026 (auction overview)
2. Christie’s: How to buy at Christie’s, Financial information (buyer’s premium effective 1 September 2026)
3. Christie’s: Geneva Conditions of Sale (1 September 2026, PDF)
4. Christie’s: New York Conditions of Sale (6 June 2026, PDF)
5. Phillips: Geneva Conditions of Sale, Live Auction: Watches (effective 12 April 2026, PDF)
6. Sotheby’s Help Center: What is a buyer’s premium? (updated 9 September 2026)
7. Sotheby’s Help Center: Guide for Buyers, Glossary & Important Notices (updated 13 September 2026)
8. Illinois Department of Revenue: ST-44 Instructions, Illinois Use Tax Return
9. Illinois Department of Revenue: 2025 IL-1040 Instructions, Line 21 Use Tax (PDF)
10. U.S. Customs and Border Protection: Shopping Abroad, Duty Free, Gifts, Household Items

Related guides

• How to verify a luxury watch before buying
• Insuring a fine watch or jewelry
• Traveling abroad with a luxury watch or fine jewelry