I’ve noticed this question being asked frequently on auctioneer discussion forums, in classrooms, and in the hallways after classrooms — …
I’ve heard this question 100’s of times in auction school, and otherwise when I speak to virtually anyone about my …
Much discussion these days revolves around how an online-only auction compares to a live auction. Some say that online-only auctions realize more money for sellers, while others say that the live auction realizes more money for the seller.
Real estate at auction is reaching upwards of 10% of the market in many parts of the United States. More and more people are looking to participate as a buyer in real estate auctions.
For those hoping to buy real property at auction, there are some basic questions that should be asked before participating. A real estate agent in a class asked me this very question the other day, and here are some of the most important questions to ask:
ots of auction customers wonder about sales tax and the buyer’s premium. How is it figured? Is sales tax added to only their bid price, or to the total including the buyer’s premium?
Yet, I wonder why since Christy’s and Sotheby’s introduced the buyer’s premium in 1975 in England, and soon after (1977) in the United States, that we still today see “This sold for … including the buyer’s premium?” Since that time, 1,000’s of auctioneers have started using a buyer’s premium, to augment income and offset decreasing seller commissions.
Auctions frequently utilize a buyer’s premium, which is a percentage of the final bid price, added to such to then calculate the final sales price. For example, a car selling at auction for $15,000 with a 10% buyer’s premium would then require the buyer to tender $15,000 + (.10*15000) = $16,500.
Will all auctions be online only by 2015? What exactly is an online only auction? Why not allow bidders to bid live, via phone, or absentee if they desire? Are we as auctioneers worried about our own profit, or our client’s profit?
What is a buyer’s premium? How does it affect bidding? How does it affect attendance? Who does the buyer’s premium belong to?