The Auction Advantage
Real Estate
Auction As Low As Zero Cost To
You
REAL
ESTATE AUCTION VS.
CONVENTIONAL BROKERAGE
Based
on a Final High Bid Price of $450,000.00 with a 10% Buyers
Premium
Zero Cost Option
Cost
To Sell Your Property utilizing the Auction Method Of Marketing
| 1.
Final/High Bid Price (FHBP) |
$450,000.00 |
| 2.
Buyers Premium @ 10% of FHBP |
+45,000.00 |
| 3.
Total Contract Price (TCP) |
495,000.00 |
| 4.
Auction Company Fee @ 6% of TCP |
-29,700.00 |
| 5.
To Seller Before Expenses ($15,300.00 over FHBP) |
465,300.00 |
| 6.
Advanced Marketing Costs (Approx. 1.5%) |
-6,750.00 |
| 7.
Less Broker Participation if used @ 1.5% of FHBP |
-6,750.00 |
| 8.
Less Transfer Tax @ 1% |
-4,950.00 |
|
Sub Total (cost
to sell so far $4,450.00) |
$446,850.00 |
| 9.
Plus remainder of the buyers premium which will
cover marketing, broker
fee if not paid out & transfer taxes (subtract No. 4 from No. 2) |
|
| +
15,300.00 |
| 10.
Net to Seller |
$462,150.00 |
| 11.
Total Cost To Sell Your Property |
+ $12,150.00 |
|
(ZERO,
you actually receive more than hammer price)
|
|
|
|
Note:
If property does
not sell, you are responsible for $6,750.00 marketing
costs
plus $3,000.00 No Sale Fee for a total of $9,750.00 |
Cost
To Sell By Conventional Brokerage
| 1.
Sale Price |
$450,000.00 |
| 2.
Less 6% Broker Fee & 1% transfer tax |
31,500.00 |
| 3.
Net to Seller |
$418,500.00 |
| 4.
Total Cost To Sell Conventional |
$31,500.00 |
In this scenario you will save
$43,650.00 by selling at auction vs. conventional brokerage
Note:
The above figures do not include usual settlement costs that
you may be required to pay. Additionally,
these figures are for illustration purposes only, and do not
constitute a promise, implied performance, agreement, or guarantee of
any kind.
|