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Auction Sales |
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Dear Edith,
A house in my neighborhood was recently bought and renovated by an investor who then put the house on the market in some sort of real estate auction. While looking through the literature about this particular auction, I was amazed to read that there was a "10% buyer's premium". Does that mean that if you had the highest bid, you'd end up actually paying 110% of your "final" bid price?
Also, are auctions like this common? Am I understanding the meaning of "buyer's premium" correctly, and are they typical in this type of situation? Would you ever recommend buying a house through this type of auction?
Thanks!
Anton
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Yes, that's the way many auctions work, and buyers would know that when they started bidding. As for how common auctions are -- that really depends on the area. Real estate customs vary widely from one location to another. To answer your question, no, I probably wouldn't sell my house that way, because around here auctions are more often used for rural properties. |
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Edith
Originally published on April 23, 2007 |
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