Auction Real Estate

Premium? What is it?

A unique opportunity for a real estate auction offers is the ability to a buyer who is represented in the rule of using all or part of the transaction costs the seller auction marketing costs and commissions offset.

Premium is an additional amount that is added to high bid price is to the total contract price the buyer pays the seller at closing the contract. The agreement between the seller and the broker / auctioneer gives the percentage of each premium, which is the broker / auctioneer by the seller pays at the end of escrow.

In an active and aggressive bidding is the premium of the bidders almost like a sales tax or simply perceived cost of doing business and can lead to higher net revenue for the seller. Premium can be specified vary from 3 percent to 10 percent of the bid price and is an integral part of any auction industry.

Can increase the premium to the seller to the gross sales price and is a way for the seller, the transaction costs transferred to the buyer. If implemented properly, the seller may the total value of the transaction cost (commission plus marketing costs) must be less than that of a sales brokerage. In fact, the goal is a “expenseless” transaction the seller side of the leaf-end. This may be particularly desirable for the sale of real estate across the country shows.