The Buyer's Premium is a charge to the Buyer that helps defray, from the
Seller, some of the expenses associated with conducting an auction.
HOW DOES IT WORK?
The Buyer's Premium is added to the winning bid to determine the total contract
selling price.
WHO BENEFITS FROM THE USE OF BUYER'S PREMIUM?
The use of a Buyer's Premium benefits Buyers and the Sellers alike. The Buyer
benefits because if not for the Buyer's Premium, the Seller would not have offered
the property for sale in an open and competitive bidding environment. The Seller
benefits because they are relieved from the obligation of paying commissions as a
result of the Buyer's Premium. Relief from such commissions, in turn, allows the
Seller to focus their resources on supporting the expense associated with the
marketing of the property to be auctioned.
DOES THE PUBLIC ACCEPT THE BUYER'S PREMIUM METHOD?
The Buyer's Premium has been used in the auction industry for over twenty-five
years and is currently being used by many national companies who are concerned
with their clients' best interests.
The use of this method is only one of several terms and conditions that govern
an auction. As with all Terms and Conditions, the Buyers are aware of the Buyer's
Premium Method before the auction commences.
We at Stirling Sotheby's International Realty believe in the Buyer's Premium Method.
Our years of experience and knowledge have benefited us in utilizing the
effectiveness of the Buyer's Premium. Statistics show the Seller nets more when
the Buyer's Premium is utilized.
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