Is it true that if a bidder premium is charged at the auction, it must be announced at the beginning of the sale?

The statement that a bidder premium must be announced at the beginning of the sale is indeed true. In an auction setting, transparency is crucial for maintaining trust and ensuring that all bidders clearly understand the terms of the sale. Announcing the bidder premium upfront provides all participants with essential information regarding additional fees that will be added to the final bid amount.

This practice aligns with ethical auctioneering standards and helps prevent misunderstandings or disputes later in the bidding process. Bidders need to know the total cost they will incur to make informed decisions during the auction. By announcing the premium at the outset, the auctioneer ensures that all bidders are adequately informed and can adjust their bidding strategies accordingly.

Failure to announce the premium at the beginning might lead to complications and dissatisfaction among bidders, as they may not be prepared for the actual amount they would need to pay. Thus, the correct understanding is that it is essential for the auctioneer to disclose any bidder premium at the start of the auction.