When you bid at auction, you’ll want a clear picture of your total cost—not just the high bid. This page breaks down the typical pieces so you can budget confidently.
| Cost | How It’s Calculated | What to Know |
|---|---|---|
| High Bid | Your winning bid amount | This is the base price you’re offering for the property. |
| Buyer’s Premium | Typically 10% of the high bid | Added to your high bid to calculate the total purchase price. The Buyer’s Premium funds our commission. |
| Deposit | Set amount per auction | Due quickly after the auction ends. It is credited toward your purchase price at closing. |
| Closing Costs | Title, recording, transfer, etc. | Paid at settlement. These vary by state, title company, and deal structure. |
Always review the specific auction terms and property listing. Individual deals may have different premiums, deposits, or allocations of fees.
- Rehab / Repairs: Material, labor, and permits to bring the property to your desired condition.
- Carry Costs: Taxes, insurance, and utilities during your hold period.
- Financing Costs: Points, interest, and lender fees if using hard money or conventional loans.
- Inspection / Evaluation: Any pre-bid inspections, contractor walk-throughs, or structural evaluations you order.
If the high bid is $100,000 and the Buyer’s Premium is 10%, your purchase price is:
$100,000 (high bid) + $10,000 (Buyer’s Premium) = $110,000
You would then add your closing costs and any planned rehab budget to understand your total investment.
This is just an illustration. Each property and buyer situation is different.
Many auction buyers close with cash or hard money because auctions have firm dates and as-is terms. If you’re using conventional financing, confirm with your lender that:
- They can meet the required settlement date.
- They are comfortable with as-is condition and any occupancy status.
- You have funds available for the deposit outside of loan proceeds.
If you’re not sure how your numbers look, start here:
- Pick one target property.
- Write out your high bid, Buyer’s Premium, and estimated closing costs.
- Add a conservative rehab budget and 3–6 months of carry costs.
For lender introductions, visit our Financing page.