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James Land Company -- What is a Buyers Premium?

The Buyers Premium, sometimes called a "Transaction Fee" is an auction fee that is added to the winning bid and becomes part of the gross purchase price. Research of the real estate auction industry finds Buyers Premiums applicable at rates of up to ten per cent (10%) of the winning bids.

EXAMPLE: A winning bid of $100,000 together with a buyers premium of Eight per cent (8%) will result in a gross purchase price or contract price of $108,000.00.

Buyers must take this fee into consideration when they bid. The amount of the fees will vary. Please look for the applicable premium in the description section of each specific auction.

Who receives the buyers premium?

The Buyers Premium is paid to the Listing Broker by the closing agent at the closing of the transaction. The Buyers Premium is disclosed to Sellers in the listing agreement and on promotional materials for specific auctions.

When is the Buyers Premium collected and paid?

The Buyers Premium is collected from the buyer at closing by the closing agent. The Buyers Premium is then disbursed by the closing agent.

How will I learn about the Buyers Premium for each auction?

The amount of the Buyers Premium, stated as a percentage, will be posted with each individual auction on this site. ALERT - The fee (percentage) of Buyers Premium may vary from auction to auction.

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