Auction Fees - Too High or just about Right?

JZrarities

For example, the Realestate market charges an average 3% to the buyer and the seller.

I was looking through some of my old auction catalogs from the 80s and the typical auction fee was 10%...

Coin auction fees have climbed higher, and today are usually 15% (with some at 20%) and the auction house can try to charge the seller a small fee also...total round trip approaching 30% (wow).

With many coins these days selling for the cost of a House (in Utah anyways), I would have thought that auction house competition would drive the fees LOWER; something closer to the 3-6% like the Realestate market...but, they don't seem to compete on price...

Have we just come to accept the current auction fees as acceptable, or should we demand lower fees...please consider the Internet functions similar to the MLS, and printed auction catalogs are becoming less necessary. Coins are individualistic and unique, much like a house.

BAJJERFAN

Not sure about your area, but around here I have never heard of a buyer ponying up separate real estate fees for a home purchase. I believe commish is about 7% borne solely by the seller. Whether a buyer can successfully include and recover commish in the price realized is anybody's guess. depending on the size of your purchase/sale or business volume, you may or may not have some negotiating power with a major auction house.

LickThoseStamps

Its a free market. Both buyers and sellers accept the fees. Therefore, it must be just about right.

JZrarities

I guess I should have said 3% to the Buyers and Sellers AGENTs. (ie 6% total)...I don't know of an Auction House accepting 6%, although coin prices have steadily climbed to prices approaching the average House.

So, I for one, would love to make 25% on a 5 Million Dollar auction....

GoldenEyeNumismatics

Not sure what major auctoin houses you go to where the total fees are near 30%. Heritage charges 15% from the buyer and 5% from the seller... and both of those fees are fairly negotiable if you are selling a significant quantity of coins or a significantly valuable coin. The 15% buyers premium is usually considered by the bidders when they place their bids anyway, so if they win a coin they think is worth $1000 they might only bid $850 or $900.