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northeastern Ohio | I sold some timber at auction last year. The auctioneer that I hired wanted to set up the sale with a 10% buyers premium on top of the final price. I refused to go along with it. After he "mentioned" it a few more times, I flat out asked him WHY he wanted to do it this way. He said that there have been numerous "studies" done that show that the bidders will bid the SAME dollar amount irregardless of the commission/premium set up. Therefore, he said "the buyers premium is like getting a raise for both the seller and himself".
I have attended some of his other timber auctions and they were all commission type. I have attended some of his real estate and they were buyers premium. I asked him if any of his timber auctions used a buyers premium. He said that I would be the first. I said NO THANKS. He did not mention it again and my auction was commission based. | |
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Land auction here today.
