For the sale of real property at Farmer Wright's auction, what is the commission rate agreed upon?

The commission rate agreed upon for the sale of real property at an auction can be influenced by various market factors, including the type of property, the auctioneer's experience, and the specific terms outlined in the auction agreement. In this case, a commission rate of 7% is noted as the agreed upon rate.

This percentage is typically seen as a reasonable rate within the auction industry for real estate transactions. It balances the need for the auctioneer to be compensated properly for their services while remaining attractive to sellers looking to maximize their net return on the sale.

Higher rates, like 10% or 12%, could deter sellers from auctioning their properties due to reduced profitability, while lower rates, such as 5%, might not adequately compensate the auctioneer for the efforts invested in marketing, conducting the auction, and managing the sale process. Thus, 7% strikes a balance that both parties can agree on, reflecting common practices in the industry.