What are the commissions buying a property in auctions forclosure in USA

**eddykoodoo** · 02-05-2010, 11:40 PM

My real estate broker suggest me to try buying some property in Auctions Foreclosure for a very interesting price.But he told me if i will win the auctions for a hypothetical price i have to consider a 10% more for the commission i will ha to pay to the court and to Him.So for example if i'll win an auctons for 100000$ i will have to pay around 4% to the court.More or less.And 6% to him of the closing price.So around 10000 $of total commission.I have no idea of this kind of commissions.And he told me with auction is completly different from a normal sale they have more work to cover my interest.So he expect at least 6%.Before accepting his condition i would like to no if this is the average fees a Buyer has to pay his broker working with foreclosure?I know usually commission are not paid from the buyer but just from the sellers around 6% that has to be divided from the seller agent and the buyer agent.But with auctions forclosure i have no idea.Please help me cause is very important to clear my mind in this situation.
Thank you very much!

Eddy

**eddykoodoo** · 02-07-2010, 11:02 AM

Nobody has an idea?

**Greg** · 02-08-2010, 06:25 AM

It depends on the auction. If the bank has hired an auction company then they will charge you a commission which they usually split with your agent. 6% extra for helping a buyer seems to be pretty high especially since the auction companies usually charge 10%.

If you are at an auction on the court house steps where you will be bidding against the bank and there won't be any commissions involed. There will be a ton of liability involved. You could buy a house this way which still has 2nd and 3rd liens on it so you need to have a title search done just prior to the auction to make sure the title is clean. If your agent will guarantee a clean title then 6% is a fair price.

**eddykoodoo** · 02-11-2010, 11:55 AM

Thank you Greg you were really clear and helpful.In my case is an auction with the court.So seems a fair price what they ask me for the liability involved in this type of businnes.Btw i would like to know how i could be guarantee by my agent? He has to write something that he is responsable about the title i'll offer is completly clear or at least told me the exactly situation with the liens on the property so i know before the total amount i have to add to my hypotetical offer?Thank you.