What is a Buyers Premium?
Understanding a Buyer’s Premium
The buyers premium is a way to defer some of the cost that a seller would normally pay on to the buyer. Buyers premiums can be as high as 10% or 0% depending entirely on the property and the discretion of the Auctioneer but will be declared before the property is listed for sale.
seller payS less?
Yes, the Seller usually pays a reduced commission with some of our payment coming from the buyer, through the use of a buyer’s premium.
you keep the entire Commission?
Do you keep the whole commission?
No, most of the time we are accepting these auctions from other listing agents, which we refer to as the originating agent and they are expecting to receive their full commission, up to 2.5%, when the home sells at Silent Auction or in Live Auction scenario.
How does the bidder/Buyer’s Agent earn their commission?
Very simple they must be included in the registration paperwork, and for live auctions they must be present on auction day.
In a Silent Auction scenario the Buyer’s Premium may still be enforced.
What if I cannot afford to pay for the upfront marketing fee?
After a careful evaluation, if we believe that the home’s reserve has been priced correctly, we may agree to pay your upfront marketing fee for you and take it back when your home successfully closes. Typically, we will charge an additional $280 flat fee on top of the marketing funds we advanced in your behalf. So for example: If we spent $995 Ad fee + $280 (Set up fee)= $1275 would be removed from your disbursement of funds at closing.
What if I want to cancel my auction?
You absolutely can cancel the your auction, but as per your signed contract there is a $2500, this is built in to protect us from any marketing costs that may have already been spent on your behalf.