The simple answer to the question is the seller pays the marketing fee but it can be paid in various ways. In today’s upside down real estate market where the seller normally needs to sell quickly, the auctioneer will find that many homeowners are unable to front the marketing fee due to their current financial situation.

 The auctioneer and homeowner can decide on several options. For example, if the homeowner agrees that the auction will be “absolute”, viz., sold to the highest bidder regardless of price, then our firm will front the marketing fee for the homeowner with the agreement that it will be repaid at closing.

However, if the auction is to be a “reserve” auction, meaning a minimum price level must be met before the hammer falls (property is sold), we will not front the marketing fee. Only in a few rare occasions where the reserve is very low compared to what we feel the property will sell for, we will fund the marketing fee and get repaid at closing.

The auctioneer should give the seller a proposed marketing schedule showing all the estimated expenses and get a check from the seller based upon this estimate. If the expenses are less than what was proposed, any excess expense money is returned to the seller with a statement showing where the money was spent.

The marketing fee cover such expenses as but not limited to: (1)newspaper, radio and TV ad, (2) signs, posters, photos and pennants, (3) postage and addressing (4) labor for tagging, clean up, security, etc.

For more information on real estate auctions, visit my website at www.canSellnow.com.