What is a Buyer’s Premium at property auctions?
In most property auctions, the Buyer’s Premium is an expense, added to the Hammer Price, the auctioneer sells the property for. You should always know in advance of the auction what the buyer’s premium amount actually is. It is usually expressed as a fixed amount which is then added to the price the property sells at. Some auctions may express the buyer’s premium as a percentage of the sale price.