Buying or selling at auction involves a small number of clearly defined fees and deposits, depending on your role in the process. Everything is set out clearly in advance, so you know exactly what to expect before you commit.
We’ve set out everything you need to know about how auction fees and deposits work, when payments are taken and what happens once the auction ends – all with no hidden surprises.
Our property auctions follow the same established principles as traditional ‘ballroom’ auctions. The key difference is that bidding takes place online rather than in a physical auction room.
For both buyers and sellers, fees and deposits form part of the formal auction process. They cover the costs of marketing, administration and running the auction itself. In short, they ensure the auction runs smoothly from start to finish.
if you’re selling a property at auction, there are two costs to be aware of: an entry fee and a commission.
The entry free is paid before the auction and covers the cost of marketing, advertising and preparing your property for sale.
The exact amount varies depending on the property and is confirmed during your free, no obligation appraisal. At this stage, our experienced valuer will also talk you through realistic pricing, demand and expectations, so you can make a confident and informed decision about whether auction is the right route for you.
A commission is payable once your property has sold, provided the reserve price has been met and contracts have been exchanged. This is taken on completion and is based on the final sale price.
If you’re bidding at auction, there are two payments to be aware of: a deposit and a buyer’s premium. These are only payable if you are the successful winning bidder.
When the auction ends and your bid is successful, you’ll pay a deposit of 10% of the purchase price, subject to a minimum of £3,000.
This deposit forms part of the overall purchase price and is deducted from balance you’ll pay on completion.
A buyer’s premium of 1.5% of the purchase price, subject to a minimum of £1,500 for sale prices between £1 and £50,000 or a minimum of £2,400 for sales process of £50,001 upwards, is payable to the auctioneers. This figure is inclusive of VAT and is paid separately from the purchase price of the property. This is payable immediately at the close of the auction.
When bidding closes and the reserve price has been met, the highest bidder secures the property. Contracts are exchanged immediately at the close of the auction.
At this point, the buyer is contractually committed to proceed and the deposit is taken. This confirms the sale and allows the transaction to move forward without delay, providing certainty for both buyer and seller.
Before bidding at auction, all buyers must register and allow a hold on funds on their payment card. This enables payments to be taken promptly when the auction ends.
At the close of the auction:
This process ensures the sale proceeds smoothly and without unnecessary delays.
Once the auction has closed and payments have been made:
Completion is typically set for 20 working days, although the exact timeframe will be confirmed in the property’s legal pack.
Still unsure how fees and deposits work at auction? These answers cover some of the questions we’re most often asked.
If you have any questions about fees, deposits or how payments work, our auction team is on hand to talk things through before you commit.
