My initial reaction to all this was ridiculous and I replied as such. i now find it amusing and relate it to a number of experiences in my profession which I will relate to you. I have represented owners of real estate in NYC for many years and I spend most of my time negotiating commercial leases. These leases require tenants to pay annual rent. Rent consists of "base rent" which is the cost per sq. ft. and is the same for every year of the lease. Then there are escalation clauses which increase the amount that the tenant pays and they are based on certain expenses which increase for the landlord and are passed through to each tenant. Some of these are "operating escalation", tax escalation, fuel escalation, capital expenses required by law escalation, asbestos removal cost escalation, etc. Many times when a lease has been in effect for years a tenant is shocked to learn that the $100,000 base rent is now $180,000 due to the escalations in the lease. When the tenant gets a renewal lease for more than $180,000 he calls and wants to know why the rent is going from $100,000 to $200,000 instead of from $180,000 to $200,000. The tenant never took the escalation into account even though he paid it all the years of the lease and many just cannot grasp this concept. No matter how you pay the rent or look at the auction results, the price you paid was the bottom line. For all of you who think the price is the hammer price and the rest are only incidentals, I have a question. When you bid, do you take the buyer's premium into consideration? My final statement concerns a poster you bought at auction and decide to sell at a later date. Let's assume you paid $1000 plus $200 BP. When someone asks you what you paid for it, do you tell him 1000 or 1200. If you are trying to sell it for 1500 and the person asks what you paid, I guarantee you will not say 1000-----------period. I guess by now you can tell I am relaxing because I never write such long emails. My children are at my home for the week and they are putting my grandchildren to bed. CJL
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