How are auction proceeds typically distributed?

Auction proceeds are typically distributed to the seller after deducting the auctioneer's commission. This process reflects the standard business practice within the auction industry. The auctioneer facilitates the sale by managing the auction process and promoting the items, and in return, they receive a commission based on the final sales price. This commission is agreed upon in advance and is often a percentage of the total proceeds from the auction.

The seller receives the net proceeds—the final amount after deducting the auctioneer's commission. This method ensures that the auctioneer is compensated for their services while still providing sellers with a clear understanding of the amount they will receive from the sale. It is important for bidders and sellers to understand this structure, as it can influence bidding behavior and sellers' decisions regarding their initial pricing and reserve amounts.