Buyer’s Premium:
The Buyer’s premium is paid by the buyer and
is added to the high bid to arrive at the total contract price. A
Buyer’s Premium is typically 2% to 15% of the high bid. For
example, a high bid of $100.00 with an auction that has a10% Buyer’s
premium ($100.00 X 10% = $10.00), would yield a total purchase price of
$110.00. A Buyer’s premium is common in all types of auctions.
Initial
Auction Costs:
Proposed marketing costs are to be paid by the Seller in advance
and are normally offset by a Buyer's Premium. All costs are disclosed in
advance, itemized, and are true hard costs. Our marketing is not a profit
center for us. These costs will vary depending on the property and the
scope of the marketing. While these costs can vary, a seller of a $600,000
dollar home can expect a $9,000 to $18,000 commitment or 1.5% to 3% of the
property’s price.
Success
Fee:
Florabama Auction Services earns
a success fee as a percentage of the total contract price for real estate
auctions and as a percentage of the total bids for estate and other property auctions.
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Florabama Auction Services