How Are Auctioneers Paid?
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.