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Auction costs differ from a traditional real estate listing in two major ways:
1) The Seller pays an up-front marketing fee at the time the auction marketing contract is signed.
These funds are given to the auction marketing company to cover the expenses of the marketing campaign and are non-refundable. The amount of the up-front fee varies based on the price, location and specialty advertising a property might need in order to attract bidders. Our auction marketing fees typically range from $2,500 to $10,000. Please call us for a more specific discussion of options for your property.
Please note: If you are interested in a nationwide marketing campaign without an auction event, the marketing fees will be less, will be available on a month-to-month basis, and are listed under "Marketing Campaigns" in our "Options" menu.
2) The commissions to the auction company, listing agent and buyer's agent (if any) are paid by the buyer via a "buyer's premium" -- a percentage of the high bid that is added to the final bid to determine the property's sale price. When calculating the amount of the buyer's premium for an advertised property, we add the real estate commissions (per your listing agreement) to the auction company's commission (ours is usually 1 to 3 percent). Commissions are paid at the close of escrow. Sometimes the buyer's premium is increased to recoup the up-front marketing fee, although we believe it is wise to keep the buyer's premium as low as possible to encourage participation and higher bidding.
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