We are in Louisiana and made an offer on a bank owned property yesterday. Our bid was $157k but they added a 4.5% "buyer premium" to this plus a $250 fee. Weird. Do you think this is to pay the agent? And did the agent set this up or do all banks operate this way for bank owned properties? Thanks!
@Jenny Gremillion That is common if the property is bought from certain types of auctions.
This is common and would have been disclosed on the auction description etc. Always read the costs and fees associated with any auction you bid on.
Thanks @Brian Pulaski . Our agent put the offer in for us. She called us and informed us of the situation and we were just not sure what that was all about...
I’ve seen this before on short sales also. The remark would say that the seller requests that the buyer pay $xxxx for the short sale negotiator fee.
The Buyer's Premium is the auctioneer's fee. It is usually stated as a percentage of the high bid, and when added together with that bid it will equal the final purchase price to be paid by the auction purchaser. So transfer/rec/etc. will be based upon that number, not the high bid.
This would have been clearly stated in the auction advertisement and the auctioneer would most certainly have announced it again prior to the sale (and likely went through an example or two of how it works).
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