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Thoughts about Auctions charging buyers fee

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rodnil View Drop Down
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    Posted: 04 Dec 2019 at 9:19pm
What are your thought on being charged an auction buyers fee. I myself do not like it . I went to an auction this year and spent a little over $3,000.00 and was charged 10% buyers fee. I will not go to any auction that charges a buyers fee. The auction company is charging the seller a fee for the auction. It's my feeling that buyers will bid less on any given item if they know there is going to be a buyers fee added to their bid. I think the seller suffers as  well if not more . Just my thoughts
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Terry/EasternIa Quote  Post ReplyReply Direct Link To This Post Posted: 04 Dec 2019 at 9:23pm
It's a way for the auction company to get more money. I won't go to a sale if there is a buyers fee. Haven't heard of it around here yet
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Post Options Post Options   Thanks (0) Thanks(0)   Quote tomNE Quote  Post ReplyReply Direct Link To This Post Posted: 04 Dec 2019 at 9:30pm
not a problem for me!  50% of the auctions i go to do it.   most have a minimum fee of $215, so a cheap buy can get expensive.    usually the buyers fee isn't the idea of the auction company.   the owners of the stuff selling don't want to pay a percentage of what the stuff sells for to the auction company.    bankrupty sales are common to have a buyers fee!
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Dusty MI Quote  Post ReplyReply Direct Link To This Post Posted: 04 Dec 2019 at 10:41pm
If everyone would refuse to buy at any auction that charges a buyers fee, then that fee would disappear.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote KJCHRIS Quote  Post ReplyReply Direct Link To This Post Posted: 05 Dec 2019 at 12:00am
I don't like it. But if something I need or want is on auction you bid on it. All I do is figure what I'm willing to pay for am item, then deduct the "buyers premium %" before I start to bid.
As said earlier it's a thing between the sellers and auctioneers, to push cost of the auction day onto the bidders.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote PaulB Quote  Post ReplyReply Direct Link To This Post Posted: 05 Dec 2019 at 3:20am
Buyers fees are PROOF that auctioneers are crooks. There’s nothing I need bad enough to pay for the privilege of buying it. Years ago when this practice first started, I only found out about it when I went to settle. When I was informed about the extra charges, I refused to pay. That led to quite a bit of back and forth and the clerk said I would be blacklisted from their auctions, not a problem for me I replied, as I did not intend to do business with crooks. By this time quite a crowd was gathering to see what the commotion was all about. In the end the auctioneer came up to settle the noise and told the clerk to waive the fee. Needless to say I will not go to any auction charging a buyers fee and will not accept a bidder number if that is part of the last minute instructions when registering. 
 
It's bad enough that you have to be watching that you're not bidding against the squirrels, groundhogs, that airplane and the car going by on the interstate two towns over. If they can't make it honestly by only charging the seller for their services, we don't need to support them. 


Edited by PaulB - 05 Dec 2019 at 1:48pm
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Post Options Post Options   Thanks (0) Thanks(0)   Quote DiyDave Quote  Post ReplyReply Direct Link To This Post Posted: 05 Dec 2019 at 4:49am
Here in MD, this sh!t started with the late Robert H Campbell.  He was an auctioneer, here in AA county, and head of a state lobby group. Only auctioneers can get away with this crap.  The auctioneer, historically, has always been the agent of the seller, trying his best to elicit the highest bid, for the owner.  A real estate agent or a lawyer, or used care seller can't charge a fee to both the buyer and seller, its a conflict of interest! Remember the old adage , "a slave cannot have 2 masters"?

This type of thread shows up here about once a year, here, I've yet to see a compelling argument for the fee.  Me, I vote with my feet, and just don't go to those auctions, that have the buyers penalty, mostly.  It has to be something that i would want desperately, for me to go to one that has the fee...Thumbs Down
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Post Options Post Options   Thanks (1) Thanks(1)   Quote nella(Pa) Quote  Post ReplyReply Direct Link To This Post Posted: 05 Dec 2019 at 4:56am
never go.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote jaybmiller Quote  Post ReplyReply Direct Link To This Post Posted: 05 Dec 2019 at 5:54am
I refuse even with LOTS of neat stuff I'd like....
Bryan's Farm Auction is HUGE, every 2-3 months( have a look, even online bidding...)
but

13% Buyer's premium !! AND of course 13% HST (taxes)....

do the 'math'..
$100 item x 13%BP *13% HST = $128 !!!
So your $100 'deal' costs you and EXTRA $28 out the door.


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Post Options Post Options   Thanks (0) Thanks(0)   Quote Gary Burnett Quote  Post ReplyReply Direct Link To This Post Posted: 05 Dec 2019 at 6:28am
I don't really care who gets the money or how they divide it up when I go to an auction.Just have to keep in mind when when bidding about the fee and if its a taxed item
what the grand total will be.I'm pretty sure that all Federal Bankruptcy auctions have some sort of fee because the gov't is going to keep the amount that is bid so the auctioneer has to charge a Buyers Fee to make any money.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote tomNE Quote  Post ReplyReply Direct Link To This Post Posted: 05 Dec 2019 at 7:16am
used car dealer auctions all over the united states charge a fee to both the buyer and the seller!

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Post Options Post Options   Thanks (0) Thanks(0)   Quote darrel in ND Quote  Post ReplyReply Direct Link To This Post Posted: 05 Dec 2019 at 7:23am
Doesn't happen around here yet, that I am aware of. I would never hire an auction company that charges a buyer's premium. As far as going to an auction that charges one; it would not stop me as long as they were up front about it and I know about it before I go settle up. If I plan on paying X amount of dollars for an item, I would just do like others have said and do the math before I bid. If the person having the auction wants to pump money up the auctioneer's ass, that's their problem. Not mine. Darrel
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I'm not quick enough at math to keep up while bidding. So I just don't attend. That said the largest,most successful auction company by far in these parts doesn't charge it on anything EXCEPT land auctions. I guess because they handle all aspects of the transaction in house. They sell a lot of land and always bring premium buyers.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote injpumpEd Quote  Post ReplyReply Direct Link To This Post Posted: 05 Dec 2019 at 8:02am
I don't like buyer's penalty, but like many said above, just figure it in to my max. The one time I can justify it, is when I'm able to bid online and not have to go waste a whole day at an auction. If I win the item on auction, then I'll make arrangements to go get it. Every time I go to an auction for something, the one item I want is dead last, and bidding starts at what I would have paid for it! lol!
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Post Options Post Options   Thanks (0) Thanks(0)   Quote HD6GTOM Quote  Post ReplyReply Direct Link To This Post Posted: 05 Dec 2019 at 10:16am
I won't even start the pickup to attend an auction with buyers fees. Same with online bidders.
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If you won’t attend a sale with a bidders premium you must not want the item very bad. As long as you know ahead of time it’s simple math if your that poor with math pull your cell phone out. The stuff people get their panties in a bunch over.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote john(MI) Quote  Post ReplyReply Direct Link To This Post Posted: 05 Dec 2019 at 1:11pm
For Buyers Premium and if they will also be charging sales tax, you just have to read the "Terms and Conditions"  every auctioneer around here posts them.  Not to difficult to figure out.  Then if there is something I am interested in I decide how much I want to pay for it from past sales of like items and my funny money account.  Then I calculate how much I can bid before I reach my limit including the buyers premium.  Then I won't go over that amount unless it's something really special.  I carry my phone with me which has a calculator if I need to do some quick math on something.  I enjoy auctions and as long as I have read the info I will attend any auction.  I'm on a first name basis with the main auction company in my area, and all of the folks that work for them.  I just got an Xmas card from them.  I do not believe any auction I have been to have been done by crooked auctioneers.  It's just not done, for their own good.  A buyers premium is added so the cost of the auction for the seller is less, making them more profit.  I suppose the auctioneer makes more money than they used to, but hey, that's life!


I do appreciate you folks that feel the way you do about a buyers premium, cause that just makes less competition for me!  Thank you!LOL


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Post Options Post Options   Thanks (0) Thanks(0)   Quote wekracer Quote  Post ReplyReply Direct Link To This Post Posted: 05 Dec 2019 at 1:47pm
Buyers premium or not, if you are writing a check you are paying the auction company.

I flip houses on occasion and people always argue that the seller pays the realtor. However if I buy from A for sale by owner it’s always cheaper than with a realtor. Therefore, if I am writing the check, I’m paying the realtor or auction company. You just need to know what your paying for an item after it’s all done in the end.

If you really want a good deal it’s best if nobody is bidding against you. As in classified adds, FB market place. Leave the auction company out of it.

Just my opinion
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Still a joke I think. When they started this crap around her maybe 15 years it was 3%. Then 5%. And now 13% sometimes 15%. That’s getting out of hand they are getting paid by seller to sell and now you want to double dip and make me pay. Same reason I don’t go to sams club. I’m not paying to buy stuff from you.   Will still go to auctions with them only if it has something I gotta have. Used to go for the hell of it. Just my opinion

Edited by ryanschott - 05 Dec 2019 at 3:04pm
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Post Options Post Options   Thanks (0) Thanks(0)   Quote DiyDave Quote  Post ReplyReply Direct Link To This Post Posted: 05 Dec 2019 at 5:55pm
Originally posted by injpumpEd injpumpEd wrote:

I don't like buyer's penalty, but like many said above, just figure it in to my max. The one time I can justify it, is when I'm able to bid online and not have to go waste a whole day at an auction. If I win the item on auction, then I'll make arrangements to go get it. Every time I go to an auction for something, the one item I want is dead last, and bidding starts at what I would have paid for it! lol!

That's every auction I've ever been to, Ed!  And I've been to quite a few.  I don't vacation, so most Saturdays, I go to auctions, and mess with the auctioneers!WinkWink
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Post Options Post Options   Thanks (0) Thanks(0)   Quote DougG Quote  Post ReplyReply Direct Link To This Post Posted: 05 Dec 2019 at 6:37pm
As someone wrote - every time you buy something at auction you pay the auctioner- YES that's how they get paid !!!! Its the initial add on 10% that they get is the joke, I have to want something pretty bad to pay a buyer premeium,,
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Flyer Quote  Post ReplyReply Direct Link To This Post Posted: 05 Dec 2019 at 7:02pm
It's a variation of the "no-interest" loans the car companies use.  You have the choice of the manufacturer and dealer discounts with a normal loan or no discount with a no-interest loan.  The interest they would get on the regular loan is then contained in the principal of the no-interest loan.  The bottom line number (assuming you don't pay the interest-carrying loan off early) remains roughly the same.

In the end, I'm paying $x including fees and taxes.  How that gets divided between the auctioneer, the seller, and the state doesn't much matter to me.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote rodnil Quote  Post ReplyReply Direct Link To This Post Posted: 05 Dec 2019 at 9:20pm
So you do the math , that's one way of looking at it I guess. Bottom line is the seller is on the loosing end. If a tractor is worth $5000.00 and the buyers fee is 10% and you want the tractor. Doing the math; you stop bidding at $4500.00. Now lets say you won the bid, you got the tractor at the price you wanted to pay $4500 + $450 buyers fee = $4950. $50.00 less than you thought it was worth. Who lost ? THE SELLER !!! My point is that we , myself included , are doing the math and bidding less. My youngest son and I went to an auction to by a tractor the Auctioneer gave a good speech why his auction company does not will not charge a buyers fee. Those attending , my son and I included, all bid knowing when the bidding was none we knew what we were going to write the check for. And we took the tractor home that we came to buy. Just some of my thoughts. I still feel the seller is coming up short in the deal. 
 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote injpumpEd Quote  Post ReplyReply Direct Link To This Post Posted: 06 Dec 2019 at 8:22am
You are right Rod, it does hurt the seller, because look here how many said they won't even attend, or log in to auctions that charge a buyer's premium. I'm old school, and feel if someone wants to sell something, it's their responsibility to cover the fees in doing so. I've never once put a for sale ad in the paper, and when someone came to buy my item, for the asking $100 for example, then I tell them, well, since you found my ad in the paper, it will cost you another $10 for that ad. lol! Sounds pretty screwed up to me. It must be ok, they are all doing it, right??? NO! The explanation about splitting the fees between buyer and seller makes as much sense as anything. 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote wekracer Quote  Post ReplyReply Direct Link To This Post Posted: 06 Dec 2019 at 8:22am
Originally posted by rodnil rodnil wrote:

So you do the math , that's one way of looking at it I guess. Bottom line is the seller is on the loosing end. If a tractor is worth $5000.00 and the buyers fee is 10% and you want the tractor. Doing the math; you stop bidding at $4500.00. Now lets say you won the bid, you got the tractor at the price you wanted to pay $4500 + $450 buyers fee = $4950. $50.00 less than you thought it was worth. Who lost ? THE SELLER !!! My point is that we , myself included , are doing the math and bidding less. My youngest son and I went to an auction to by a tractor the Auctioneer gave a good speech why his auction company does not will not charge a buyers fee. Those attending , my son and I included, all bid knowing when the bidding was none we knew what we were going to write the check for. And we took the tractor home that we came to buy. Just some of my thoughts. I still feel the seller is coming up short in the deal. 
 


I don’t disagree with any of what you said. My only issue is that the seller gets to choose which auction company he uses. If he chose a company that charges buyers premium and gets less money that’s on him. I’m not saying I like it. But I don’t like seeing one price on the shelf and then adding sales tax at the register either.

I don’t know what commission is for a traditional auction but there’s not much difference between 15% on the front end and 10% on the back end. Either way the auctioneer gets paid

Edited by wekracer - 06 Dec 2019 at 8:23am
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I like auctions. I go to several a year. Mostly to visit with freinds of meet folks interested in old stuff.
 When they start putting the buyers premium on the coffee and hot dogs, I am done!:)
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Gary Burnett Quote  Post ReplyReply Direct Link To This Post Posted: 06 Dec 2019 at 2:15pm
Well I hope none of you here ever go to a car lot and think you're going to pay the price
that is quoted for a vehicle especially a name brand dealership.You get hit with a buyers premium and it wasn't an auction.(LOL)
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Oh the horror, all the people that think the world is coming to an end because the auctioneer has a buyer's premium.  If it was such a problem then the real estate industry would have gotten rid of it by now.  Apparently there are still enough people around to bid at buyer's premium auctions because there are very few bargains.  Online auctions require more photos = more work and in many cases bring in more bidders so its reasonable for the auctioneer to charge more -- how much more is the sticky question.  There are some exceptions, but sometimes the auctioneers that don't charge a buyer's premium are lousy auctioneers that can really screw a sale up, sometimes you get what you pay for.  Hand held calculators cost about $3 for those who are math challenged.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote 200 10and20 Quote  Post ReplyReply Direct Link To This Post Posted: 06 Dec 2019 at 2:34pm
Originally posted by PeteMN PeteMN wrote:

Oh the horror, all the people that think the world is coming to an end because the auctioneer has a buyer's premium.  If it was such a problem then the real estate industry would have gotten rid of it by now.  Apparently there are still enough people around to bid at buyer's premium auctions because there are very few bargains.  Online auctions require more photos = more work and in many cases bring in more bidders so its reasonable for the auctioneer to charge more -- how much more is the sticky question.  There are some exceptions, but sometimes the auctioneers that don't charge a buyer's premium are lousy auctioneers that can really screw a sale up, sometimes you get what you pay for.  Hand held calculators cost about $3 for those who are math challenged.
I don't think anyone has said anything about figuring the percentage to dollars even the dimbulbs could figure that out. What everyone appears to be referring to is the charge itself. Here in Illinois one of the best auction services is Sullivan Auctioneering they advertise 100 percent better and do 100 percent better at drawing a crowd than the Auction Co. over East that charges the fee and that one does a terrible job of drawing a crowd and advertising!!!
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Post Options Post Options   Thanks (0) Thanks(0)   Quote jaybmiller Quote  Post ReplyReply Direct Link To This Post Posted: 06 Dec 2019 at 2:59pm
buyer's premiums  are like carbon taxes, getting something( OUR money) for nothing.
I've yet to see any real 'deals' up at Bryan's Auctions, though you have to look online before it closes.After that the sold prices disappear,wondering hmmwhat did that actually sell for ?
Pretty soon they'll want a buyer's bidding fee, say $15 just to get in !
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