Auctioneers charging "technology fee" for online auctions

handlemaster · 10-11-2023 9:46am #1

I noticed auctioneers are probably now making more on an online auction sales by charging a "technology " fee than the sale itself. Imagine going to a shop going to self service machine and been charged to use this technology... the cheek of it

micosoft · 10-11-2023 9:52am

https://www.boards.ie/discussion/2058321974/auctioneers-charging-technology-fee-for-online-auctions

Yes? That already happens. Private ATM's charging fees OR that fee being passed to the bank which then passes to you. Increasingly common as Irish Banks exit the ATM market so just like UK & US. Same as retailers asking a minimum for card payments to cover the cost of the transaction.

At the end of the day there is a cost for technology. It can either be hidden in the overall cost or unbundled. If Auctioneers are finding people think they will sell online rather than use the auctioneering part of the business why wouldn't they? It's just like the EBAY fee. Folk think everything is Facebook (where the fee is your private data).

handlemaster · 10-11-2023 10:03am

They are having it both ways charging their client to list the property and sell then charging the potential buyers. Setting deliberately low prices so some buyers falsely think they could get a bargain. The cost of the technology is a cost of the business model for sure, the same tech allows for lower cost of operation.

Gumbo · 10-11-2023 12:04pm

https://www.boards.ie/discussion/2058321974/auctioneers-charging-technology-fee-for-online-auctions

Any links to these fees. I haven’t seen them yet, especially on the purchaser side of things.

Del2005 · 10-11-2023 12:10pm

https://www.boards.ie/discussion/comment/121350026#Comment_121350026

The cost of the technology is a cost of the business model for sure

And it'll either be added to the bill as a hidden cost or made obvious, it doesn't disappear if its not listed.

handlemaster · 10-11-2023 12:20pm

https://www.boards.ie/discussion/comment/121350561#Comment_121350561

Your missing the point. The seller is already charged a percentage which covers this cost. This is just gouging the customers.

handlemaster · 10-11-2023 12:23pm

https://www.boards.ie/discussion/comment/121350530#Comment_121350530

Bidx1 charge 150 euro....

For auctions in the Republic of Ireland, there is a non-refundable technology fee of €150 (€121.95 plus VAT) for each auction. This fee is paid to BidX1 Technology Limited and goes towards the use of their website and technology service. Please note that BidX1 Ireland Limited does not charge any fee in respect of a sale. The technology fee is payable during the registration process and will be processed as a separate transaction to the Bidder Security payment and any deposit requirement.

Gumbo · 10-11-2023 12:29pm

https://www.boards.ie/discussion/comment/121350624#Comment_121350624

That’s an auction. BidX are auctions. So not comparing apples to apples here.

Generally speaking, standard mortgages don’t allow purchases through BidX. I know I am specifically not allowed to purchase from them and I’ve drawn down 2 mortgages from 2 different banks in the last 12 months.

If I buy a car at Merlin Auctions I also have to pay a commission fee.

Claw Hammer · 10-11-2023 12:54pm

https://www.boards.ie/discussion/comment/121350624#Comment_121350624

HAs anyone complained to the consumer protection commission about this. Auctioneers are by law only allowed charge one party to the transaction, not both. Routing it through a related company does not change that.

handlemaster · 10-11-2023 1:35pm

https://www.boards.ie/discussion/comment/121350656#Comment_121350656

He caption stated clearly the topic.Don't know what the point is about mortgages.

Gumbo · 10-11-2023 1:45pm

https://www.boards.ie/discussion/comment/121350981#Comment_121350981

You’re saying estate agents are adding these fees. You’re also saying they are charging clients at both ends. You also stated that purchasers have to pay these fees.

They are not. Auctions are adding these fees. Similar to any other auction house in the world.

From bidding on BidX before as a purchaser, it is free to do and no additional fees are added to you.

Not sure exactly what your gripe actually is here.

10-11-2023 1:46pm

The technology fee applies to the online auction registration, not the sale of a specific property, bidders can bid online on any number of properties by paying that one-off fee, they are very clear that no fee is charged to the buyer of a property, so I’m struggling to see why you think why there would be any consumer issue.

handlemaster · 10-11-2023 2:15pm

https://www.boards.ie/discussion/comment/121351022#Comment_121351022

Its not free. 150 euro if you want to bid.

Claw Hammer · 10-11-2023 2:18pm

https://www.boards.ie/discussion/comment/121351030#Comment_121351030

The auction is conducted by the auctioneer. Only the auctioneer has a licence to sell the property/ The fact that he chooses a platform as the method of sale is the same as an auctioneer charging for the hire of a room to conduct an auction. It is a charge to a purchaser by the auctioneer to defray his expenses or make a profit.

10-11-2023 2:19pm

https://www.boards.ie/discussion/comment/121351193#Comment_121351193

That is for registration to the online platform, it is free to bid on the property after that. You could always attend in person, auctions used to be free to attend, but it’s been a few years since I attended one in person so they may charge an entrance fee now.

Gumbo · 10-11-2023 2:25pm

https://www.boards.ie/discussion/comment/121351193#Comment_121351193

Are you sure about that?

The last property I went to was BidX. You have to turn up in person and give the EA your name and email address.

They give you a code.

You go home and log into their site using the code and can bid. Cost me nothing.

Now when you bid you pay €100 and if you are unsuccessful, it’s fully refunded. So no additional cost.

10-11-2023 2:30pm

https://www.boards.ie/discussion/comment/121351207#Comment_121351207

It is a registration fee for anyone who wants to use the online platform, bidders have the option to attend in person free of charge, or certainly used to. Nothing you have posted in this thread, or your previous when you got stuck in over the same subject, indicates a consumer issue.

handlemaster · 10-11-2023 2:57pm

https://www.boards.ie/discussion/comment/121351238#Comment_121351238

For auctions in the Republic of Ireland, there is a non-refundable technology fee of €150 (€121.95 plus VAT) for each auction.

spaceHopper · 10-11-2023 3:00pm

It's a great way of weeding out messers, if you have to pay to use their system it stops you from registering for free and sending in made up bids that you have no intention of following through on.

10-11-2023 3:03pm

https://www.boards.ie/discussion/comment/121351438#Comment_121351438

For each auction online registration, is the important part, not per property, nor per purchase. If memory serves me right, someone with experience of the actual online software posted that it is a third party, not BidX1 who provides the online platform.

Gumbo · 10-11-2023 3:04pm

https://www.boards.ie/discussion/comment/121351438#Comment_121351438

You are mixing up the Registration fee on the seller using the platform against the deposit the buyer pays and is fully refundable. As a seller I pay the "entry" fee. Same as if I was selling a car through Merlin Auctions.

"If you are not the successful bidder on the day of the auction, the Bidder Security will be returned to you in line with our terms and conditions."

https://bidx1.com/en/buyers-guide-ireland

Auctioneers charging "technology fee" for online auctions

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