How Are Auctioneers Paid?
Generally, the more money you make selling your assets, the more auctioneers make. Hint: they want you to make more money.Being an auctioneer or conducting auctions is fun, rewarding, and when done correctly, a profitable business. The question many people ask is how do auctioneers get paid? Many people are surprised to learn that an auctioneer is a full-time job. How and how much an auctioneer is paid often depends on the type of assets or property he or she is selling.
At the most basic level auctioneers receive a commission (percentage of the sale price) and/or fee by the seller of the asset or property in question. Agreed upon prior to the auction, these commissions and fees are in the auction contract. Some auctioneers utilize a buyer's premium, a surcharge on top of the sale prices paid by the buyer. This buyer's premium often offsets expenses like credit card fees or online bidding expenses.
In real estate and personal property auctions an auctioneer may charge both a seller's commission and a buyer's premium. There are a number of methods on what and how much to charge and it often comes to what is customary and accepted in a region or asset class. A professional auctioneer will always detail all commissions, fees, and expenses upfront, and details those in a written contact. Auctioneers detail the type and scope of work to prepare and market assets for sale beyond what it costs to have an auction. This will include all types of marketing from signs to social media posts.
Commissions and fee structures vary; however, generally the rule applies that the more the sellers make, the more the auctioneers will earn. Auctioneers, like all commissioned salespeople, are thus incentivized and motivated to sell your home, car, collection or benefit auction for as much money as possible and do so in a fast, fun and transparent manner.
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