Buyer’s
Premium:
The buyer’s premium is paid by the buyer to the seller
to help offset auction marketing costs. This is the premium
added to the high bid to arrive at the total contract price.
A buyer’s premium is typically 7% to 10% of the high
bid.For example, a high bid of $2,500,000 with an auction that
has a10% buyer’s premium ($250,000), would yield a total
contract price of $2,750,000. 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. All costs are disclosed in advanced, 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 $3 million dollar home can expect a $45,000
to $90,000 commitment or 1.5% to 3% of the property’s
price.
Success Fee:
Smith & Bucci Real Estate and Auctions, Inc. earns a
success fee at closing of 10% of the total contract price.
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