What is a Buyer’s Premium?
A Buyer’s Premium is a percentage amount paid by the buyer and added to the highest successful bid to determine the final contract price. If a bid is being utilized, it will be detailed in the auction terms. If you sign our Bidder’s Agreement prior to the auction, you are required to pay the Buyer’s Premium if you are the winning bidder.
On most properties, Williams & Williams charges a 5% fee (minimum $1,500 for On-line Only Auction, $2,500 for all others) known as a Buyer’s Premium. This fee is added to the winning bid (also known as the “hammer price”) and is payable as part of the total purchase price of the property. Example: If the winning bid is $100,000, then the Buyer’s premium is $5,000 ($100,000 x 5% = $5,000). The Buyer’s Premium is then added to the winning bid to calculate the total purchase price ($100,000 + $5,000 = total purchase price of $105,000). The Buyer’s Premium is used to compensate the Brokers and/or Auctioneer and to cover the costs of sale from pre-auction through closing. It is a standard practice utilized by most auction firms. Please review the property specific page or the Sale Day Notes to determine if a property has a Buyer’s Premium (or an Auction Service Fee).