How Are Auctioneers Paid?
- Jay Cash, The Auctioneer
- Apr 7, 2020
- 2 min read
How Much Do Auctioneers Charge?
MOST Auctioneers Are Paid On A Commission Basis. There is no industry standard or set fee.
Commission Based - Some Auctioneers charge the seller a commission, which is typically a percentage of the sales price. For example, an auctioneer charging the seller 5% on the gross proceeds of a $25,000 vacant lot would earn $1,250. (3% Sales Commission would generate $750 on a $25,000 property)
Flat rate - Some Auctioneers charge a flat rate for their auctioneering services. For instance, an auctioneer charging a $750 flat rate would earn that fee regardless how long the auction lasts or how many dollars worth are sold.
Buyer Paid Commission, (BUYER'S PREMIUM) is a Fee paid by the buyer, typically a percentage of the final bid. This can range from as little as 1-2% up to 15-20-25%. THIS SHOULD ALWAYS BE DISCLOSED. A buyer’s premium allows an auction company to create an additional stream of income to cover costs associated with conducting an auction. The Buyer's Premium belongs to the seller, but may be agreed that the auctioneer retains a portion of the buyers premium as compensation. A Buyer's Premium example, if a piece of real estate sells for $25,000 and carries a 10% percent buyer’s premium, the buyer must pay $27,500. 25,000 x 1.10 = $27,500
All Auctioneers & Real Estate Brokers can set their own fee structure. It is not required that an auctioneer disclose their fee's to anyone other than the seller. This is a negotiated rate between the Auctioneer & Seller. However, The buyer's premium must always be disclosed prior to any bidding taking place. There is NO standard/set commission rate.
Figures and Percentages Are Used As Mathematical Examples Only.
Jay Cash
Auctioneer & Real Estate Broker James R. Cash Auctions & Real Estate 615.785.8982 • Nashville, Tennessee Auctioneer
This article provides a great breakdown of how auctioneers are compensated, which is a key consideration for both sellers and buyers. It’s fascinating to learn how their fees work, and how their expertise and skill are reflected in their pay. In the same way, businesses can benefit from systems that enhance efficiency. For example, a smart thermostat for business can optimize energy use, making the environment more comfortable for customers and employees while cutting costs. Just as auctioneers are paid for providing value, smart technology can bring measurable benefits to any business, improving both productivity and savings.
Auctioneers typically charge a commission based on the final sale price of an item, which can range from 10% to 20%, though this may vary depending on the auction type, location, and value of the items sold. Some auctioneers might also include additional fees for advertising, setup, or administrative costs. There's a chance that rates could be negotiable depending on the scope of the auction or the relationship with the client. If you're dealing with legal paperwork, especially international transactions, there’s a possibility you’ll need services related to dfa san pablo apostille, which might come up during property or asset transfers.
Auction fees can vary greatly depending on the structure chosen by the auctioneer, whether it's a commission or flat rate. It’s important to factor these costs into your sale, especially when selling an old house. Understanding the buyer’s premium and how it affects the final sale price can help set realistic expectations. Whether you're looking for a quick sale or aiming to get the best price, knowing the auction structure helps ensure a smoother process.