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SHELLY

SoWal Insider
Jun 13, 2005
5,775
802
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0

You guys still don't get it. The BUYER pays the 10%. The seller pays an upfront marketing fee. It is a beautiful biz plan for the auctioneer who virtually pays nothing and has no risk.

PAG's upcoming auction features 11 of 15 properties with an advertised reserve. What more could a buyer ask for? He sees the absolute minimum the seller will accept, add 10% and then if he feels it is a deal he goes to the auction and bids. No time wasted. No leaving with burnt feelings. He's going to an auction where he knows the price going in.

Answer me this Joe.

On the Nov 7 auction, an Ariel Dunes II condo #1103 is listed at a minimum bid of $295K. Just suppose, someone wants to buy that condo today and offers the owner $295K...can the owner accept that offer? If the answer is yes, does the seller owe the auction house a portion of the commission?

.
 
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Busta Hustle

Beach Fanatic
Apr 11, 2007
434
34
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0

i believe the buyer pays another 29,500 and that goes to the auction house and any other realtors involved...:dunno:
 

Joe Mammy

Beach Lover
Mar 26, 2007
140
40
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0

Answer me this Joe.

On the Nov 7 auction, an Ariel Dunes II condo #1103 is listed at a minimum bid of $295K. Just suppose, someone wants to buy that condo today and offers the owner $295K...can the owner accept that offer? If the answer is yes, does the seller owe the auction house a portion of the commission?

.

We are encouraging pre-auction offers. Using your example of #1103 above, the offer would have to be for at least $295K + 10% or $324,500. The offer would be presented to the seller who may accept it or may hope to get more bids and more money at the auction. The seller is under a listing agreement with the auctioneer that would entitle them to the 10% buyer's premium regardless if it makes it to auction or not.
 

SHELLY

SoWal Insider
Jun 13, 2005
5,775
802
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0

We are encouraging pre-auction offers. Using your example of #1103 above, the offer would have to be for at least $295K + 10% or $324,500. The offer would be presented to the seller who may accept it or may hope to get more bids and more money at the auction. The seller is under a listing agreement with the auctioneer that would entitle them to the 10% buyer's premium regardless if it makes it to auction or not.

Thanx.


Shel.
 

Beachcoma

Beach Comber
Oct 30, 2007
27
7
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0

With auctions, for me, the "minimum reserve", "minimum price" or whatever you want to call it is not a big problem. What I have a problem with is the 10% "buyer's fee".

I don't know how the buyer's fee is apportioned with regard to auctioneer, R.E. agent etc. or whether the auctioneer gets it all. All I know is that I would be happy to auction $300,000 plus properties all day long for 10%!! Of course not all auctions are successful, but the fee should stand on it's own for each property and not be "padded" to make up for the "no sale" properties. All a buyer's fee tells me is that there is still room in the price for a middleman to make a hefty commission!

I am sure that most potential buyers such as myself look at the buyer's premium as a discouraging fee, and one that further muddies the water as far as determining true property value.
 
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