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Old 11-28-2006, 12:28 PM
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Default What is the rationale behind a buyer's premium on an auction

Posted By: warshawlaw

It seems to me that most everyone bidding isn't stupid enough to bid without considering the BP, so it doesn't increase bidding levels. It also seems to me that consignors aren't stupid enough to forget the BP. So why have a BP at all? Why not just take a straight % of the gross proceeds?

I'd particularly like to hear from the auctioneers on this board on this question.

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