In auctions, the buyer's premium is a percentage additional charge on the hammer price of the lot. It is made by the auctioneer to cover his 'administrative expenses'.
In the fine art sector major auction houses have made this charge for some time, with premiums in the region of 10%-20%. In the real estate sector the premium, if charged at all, is much less (2%-2.5%). However more recently in the UK foreclosure properties have been offered without fee to the seller but with a substantial buyers premium of 10%.
The amount of the buyer's premium will normally be stated in the auction house terms and conditions
Monday, August 9, 2010
What Is An Auction
An auction is a process of buying and selling goods or services by offering them up for bid, taking bids, and then selling the item to the highest bidder. In economic theory, an auction may refer to any mechanism or set of trading rules for exchange.
There are several variations on the basic auction form, including time limits, minimum or maximum limits on bid prices, and special rules for determining the winning bidder(s) and sale price(s). Participants in an auction may or may not know the identities or actions of other participants. Depending on the auction, bidders may participate in person or remotely through a variety of means, including telephone and the internet. The seller usually pays a commission to the auctioneer or auction company based on a percentage of the final sale price.
There are several variations on the basic auction form, including time limits, minimum or maximum limits on bid prices, and special rules for determining the winning bidder(s) and sale price(s). Participants in an auction may or may not know the identities or actions of other participants. Depending on the auction, bidders may participate in person or remotely through a variety of means, including telephone and the internet. The seller usually pays a commission to the auctioneer or auction company based on a percentage of the final sale price.
Sunday, August 8, 2010
National Auction Service
National Auction Services
National Auction Services was started in 2006. The company was founded on honesty and integrity. The company is a full service auction company and there is no job to big or small. National Auction Services wants to do a great job for everyone they work with so that it is a life time relationship and have satisfied customers. If you need help with an Auction call National Auction Services today.
Listing & Selling Residential Real Estate
Auction Method Real Estate Sales
* Residential Homes
* Personal Property
* Commercial Property
* Business Liquidation
* Farm, Ranch & Land Auction
* Personal Property
* Commercial Property
* Business Liquidation
* Farm, Ranch & Land Auction
Phone: 316-617-3163
Email: waynejolsen@gmail.com
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