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OPENING BID INCENTIVE PROGRAM
189 S. Windom Way
Durango, Colorado 81301 (“Property”)
Saturday, October 12th, 2019 at 2:00pm MT (“Auction”)
Auction to be held on-site. Remote bidding also available. Inquire for details.
As per Clause Seven (7) of the Luxury Auction® Terms of Sale, an eleven percent (11%) premium (“Buyer’s Premium”) is applied to the high bidder’s winning bid, and is paid by the bidder on top of his high bid price to arrive at the total purchase price (“Total Purchase Price”). Below is an example, using arbitrarily selected figures:
Auction High Bid: Auction Buyer’s Premium: Total Purchase Price:
$ 8,000,000 $ 880,000 $ 8,880,000
Using the Opening Bid Incentive Program (“OBIP”), a bidder can substantially reduce the Auction Buyer’s Premium. The following rules apply to the OBIP:
A. First, an Opening Bid is not required to participate in the Auction. It is an option available to bidders interested in maximizing their potential savings on the purchase of the Property. If the high bidder at the Auction does not put forth an Opening Bid and therefore does not receive any reduction, the eleven percent (11%) Buyer’s Premium would be paid on top of the Auction high bid.
B. Bidders who do elect to put forth an Opening Bid at any amount will receive a ten percent (10%) reduction based on that Opening Bid. An example is shown below:
Opening Bid Amount Reduction Earned (to be applied to Auction Buyer’s Premium)
$6,000,000 $ 600,000 (10% of $6,000,000 Opening Bid)
The reduction earned from the Opening Bid is then applied to the high bidder’s Buyer’s Premium at Auction. Below is an example (using the arbitrary selected figures at top and the reduction earned by the Opening Bid in the preceding example):
Auction High Bid: Auction Buyer’s Premium: Total Purchase Price:
Reduction from Opening Bid:
Auction Buyer’s Premium less Reduction: Total Purchase Price (final):
Buyer Savings:
$ 8,000,000 $ 880,000 $ 8,880,000
$ 600,000
$ 280,000 ($880,000 - $600,000 = remaining Buyer’s Premium) $ 8,280,000 (Auction High Bid + remaining Buyer’s Premium)
$ 600,000!
DurangoLuxuryAuction.com | October 12, 2019 43