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. Much discussion has taken place about its use and how a buyers premium applies to transaction that involves the selling of real property 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.
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