Question about buying at auction...
For those of you that have ever purchased a home at auction - the buyers premium is pretty self explanatory, in this case, it's 5% of the bid amount, earnest money, same thing. In the case of a buyer's agent commission - as a Mortgage lender, I like to use my agents to purchase properties, to put a little money in their pocket for their help in finding the deal, etc. Is the 3% buyers agent commission normally paid on top of the 5% buyers premium, or is the 3% taken out of, the 5% buyers premium? Here's the verbiage for any of you who do them regularly.
Thank you
- Buyer's Premium: Greater of 5.0% of bid amount, or $1,000 (Buyer pays at closing) CASH
- Earnest Money Deposit: Lesser of 3.0% of bid amount, or $15,000. (Buyer pays at bid selection)
- Buyer's Agent Commission: Greater of 3% of sale price or $1,250.