Matthew Price, Auctioneer - Auction Costs

With the various auctions, there are costs associated with the handling of the auction.  Be aware, some costs are outside of the Scope of what the auctioneer can manage and are passed through to the Seller.

What does an auction cost?

An auction costs a percentage of the gross proceeds, additional hourly labor, and advertisement.

Some advertising costs are up front, as explained below.  You then receive a final settlement report that outlines what the costs were and your net total with a check.  The percentage is based on what and how much you have to auction.  Each auction is different.

Buyer’s Premium:

The Buyer’s premium is paid by the buyer and is added to the high bid to arrive at the total contract price. A Buyer’s Premium is typically 2% to 15% of the high bid.  For example, a high bid of $100.00 with an auction that has a 10% Buyer’s premium ($100.00 X 10% = $10.00), would yield a total purchase price of $110.00.  A Buyer’s premium is common in all types of auctions.

Initial Auction Costs:

Proposed marketing costs are to be paid by the Seller in advance and are normally offset by a Buyer's Premium. All costs are disclosed in advance, itemized, and are true hard costs. Our marketing is not a profit center for us. These costs will vary depending on the property and the scope of the marketing. While these costs can vary, a seller of a $600,000 dollar home can expect a $9,000 to $18,000 commitment or 1.5% to 3% of the property’s price.

Success Fee:

We earn a success fee as a percentage of the total contract price for real estate auctions and as a percentage of the total bids for estate and other property auctions.

Moving and Storage:

Moving and Storage are always passed to the buyer and are billed when the expenses are due.   Moving expenses are often $20 per hour for two movers in addition to a $200 Truck rental fee.

Port-O-Johns:

Some auctions may need the use of a Port-O-John, which in some cases makes your buyers comfortable.   In these cases, we are charged by a company that handles these $75 per day the Port-O-Johns are on site.   These costs will be on the final consolidated report when it is finalized and are deducted as an itemized expense.

Consessions:

For the longer auctions that we have, we contact several organizations for concessions which include hot dogs, burgers, etc.   These commonly require a minimum requirement in order for them to show.  Plain and simply - if they can't make money, they have better places to be.   We want them to make good food and make a dollar so they will return.

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Online & Live Auction Venues

Diverse Auction Platforms allow us to deliver to you the best in Auction services.   Estate Tag sales deliver one or two people who wish to negotiate a "dirt cheap" price for your quality assets, our Online and Live Auction platforms deliver people who want your assets at the highest prices.   In many cases, it delivers well above the pricing of Estate Tag Sales.

Estate & Consignment

If you have questions about Estate Sales, Estate Tag Sales, or Consignments and what we offer, we have several different solutions for you.

  1. Estate Tag Sale - Coming Soon.
  2. Estate Auction - Coming Soon.
  3. Consignment - Coming Soon.

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