Real Estate Auction, Buyers Premium, Land Auctions, Commercial Auctions

Real Estate Auction, Buyers Premium, Land Auctions, Commercial Auctions

How to save money at a Real Estate Auction and use the Buyer’s Premium to your advantage at Land Auctions and Commercial Auctions.

Most Real Estate Auctions use the buyer’s premium at many land auctions, personal property auctions, equipment and so forth. Commercial Auctions may be the next wave of Real Estate to hit the Real Estate Auction process and you can bet that the buyer’s premium will be in full use. The Buyer’s Premium by definition is an advertised percentage of the high bid or flat fee added to the high bid to determine the total contract price to be paid by the buyer. Below I will explain how the use of the buyer’s premium will actually help the buyer and the seller save money while producing the best market price in today’s environment.  While the actual percentage may change from Land Auctions to residential or Commercial Auctions the first thing that a buyer must do is read the terms that is posted. Ask the Auctioneer what the buyer premium is and how will it be applied to the Real Estate Auction you are attending.

Be smart about what your top bid will be, do the math and calculate the bid increments in a spreadsheet and stick to your guns when bidding. Understand that if this a business transaction make your numbers work. If the purchase is for personal use then bid according to your desires. Bidding wars are possible, however market will rule at the end of the day.

I will have a series of blogs on the use of the buyer’s premium with actual results from a live and online Real Estate Auction. Hopefully you as a buyer will become familiar with this procedure the next time you attend a Land, Commercial, online or any other Real Estate Auction.