Real Estate Auctions have been around for quite awhile and successful Auctioneers Certified in the use of multi-level techniques have commonly brought a new flare when offering property for sale.In the early 1990's the use of the buyers premium became increasingly supportive and used in real estate auctions in selling personal property. Rapidly in the past decade the use of the buyers premium has been used in real estate transactions to enhance the seller's bottom line. A recent Florida Land Auction sold with outstanding results and the commission was paid by the buyer. The seller netted more at the closing table with most of the closing costs paid by the buyers. Much discussion has taken place about its use and how a buyers premium applies to transaction that involves the selling of real estate at auction, as well as personal property. In my opinion and based on facts of many auctions, I feel strongly that a buyers premium will yield a greater amount that a seller will receive.
Below is an example of how the buyers premium is calculated:
Bid Price 1,000.00
10% BP +100.00
________________
Total Contract = 1,100.00
Online real estate auctions have also adopted the use of the buyers premium. Be sure to carefully read all the terms and conditions of the auction. The terms and the amount of the buyers premium should be posted as required by most states.
