auctions

[Courtney Jones]

I came across this post .  .

website. No minimum starting bid required. All auction properties are subject to a 5% buyers premium with a minimum of $2,000 and subject to a reserve price as well as seller confirmation. Total commission paid on auction properties is 5% of the contract sales price: 2.5% to the listing broker with a $1,500 minimum and 2.5% to the cooperating broker with a $1,500 minimum. No other incentives apply. Does then mean when you purchase something from auction,you cannot have a loan,it must be cash? I cant see how you can have a loan if you dont know what the final price is going to be. Can anyone enlighten me?