Prices are always low at the February auction. You'll see some of those same games next month for $500+ more.
And yes, fees and tax not included. Some are buybacks. So before you just say "wow, NBAFB went high at $2350 but LOTR was a steal at 3650!" consider that the buyer of NBAFB may have been bidding against the owner from $1600 (a "steal" price) to $2350...but the owner of LOTR was bidding from $3500 and got no interested buyers past $3650 so he bought it back. All it takes it one person to be interested (could be you!) and the price could have been $4000, $4500, $5000...til the owner is happy. And there needs to be a buyback system, or reserve which is more work, because without it there would be far less sellers there with machines. The rest of the coin op market is not a sellers market like with pins. These operators aren't dumb, they know about eBay, Mr Pinball, etc. and many of them bringing games there are here on Pinside too. They just prefer a chance to bring a game there and sell (or dump) it for a $100 sales fee rather than go through the effort of cleaning each game, fixing or disclosing issues, taking pictures, dealing with payment options and shipping, etc. And sometimes sellers get lucky when people get caught up in a bidding frenzy.
$1250 for a Baywatch may have been a good deal, but you can't assume it was fully working, good DMD, no battery corrosion, no water damage, no playfield wear, shopped, etc. And most of these games are locked, so you're truly buying it like you see it.