It is never up to the auction company to charge a buyers premium, that is the sellers decision. Would we take an auction if the seller chose to use buyers premium to pay commission? Yes we do and have. We always thoroughly explain to the seller the use of a buyers premium and sellers commissions. Some sellers charge a buyers premium because they believe the auction process serves both the buyer and the seller, after all, they could have just sold the farm privately and not given buyers a chance to buy it. Other sellers believe buyers would not bid because of a buyers premium and choose to use only an undisclosed sellers commission. Either way, the buyers premium just becomes a part of the price of the real estate purchased and is added to the price. We believe bidders are accused to factoring in incidental costs and bidding accordingly and we believe sellers have the right to offer their farm in any format or term they desire. We of course insist on complete honesty and ensure any buyers fee is prominently advertised and known by bidders.
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