Auction fees explained

Buying or selling a property at auction can be a faster, more certain way to move compared to traditional sale methods. However, both buyers and sellers should understand the fees involved so there are no surprises. Below is a breakdown of the typical auction fees you can expect.

Fees for buyers

If you’re buying a home at auction, you’ll most likely need to pay a non-refundable Reservation Fee. With Andrews Auctions, this fee is set at 4.2% of the purchase price, with a minimum charge of £6,600 (including VAT).

The Reservation Fee is separate from, and paid in addition to, the purchase price and should always be factored into your budget when deciding how much you are willing to pay for a property at auction.

For each property, details of any applicable fees and charges will be clearly set out on the auction page, so it’s always worth checking these carefully before placing a bid.

Fees for sellers

One of the main attractions of selling at auction is that you typically don’t have to pay any selling fees. Instead, the buyer usually covers the auction and estate agency costs through the Reservation Fee.

In certain circumstances, the seller may become liable to cover the Reservation Fee.  This would usually be if a proceedable buyer has placed, or is willing to place, a bid at or above the reserve price of the property, and the seller then chooses not to proceed.

As a seller, your main costs are related to preparing your property for sale. These fees can vary, but here’s an idea of what to expect:

Auction pack

Every property sold at auction requires an auction pack. These packs contain important material information about your property that a potential buyer needs when deciding if they wish to place a bid. The cost of preparing an auction pack can vary depending on the legal firm and the complexity of your property but typically ranges from £350 to £500 plus VAT (£420 - £600 including VAT).

Management pack

For leasehold properties, you will need to provide a management pack. This is available from the freeholder or management agency, and they will be able to confirm any associated cost with you. The cost of this pack is payable by you, directly to the freeholder or management company and will typically range from £200-£500 plus VAT (£240- £600 including VAT). 

Conveyancing fees

You will also need to instruct a legal firm to handle the legal aspects of the sale. Conveyancing fees are payable directly to your chosen legal representative, and costs vary depending on the solicitor and the complexity of the property.  This can be the same legal firm that you choose to produce your legal pack or a separate legal firm.

Anti-money laundering checks

We are required by law to check the identity of all sellers/beneficial owners and the buyers with whom they transact, as well as check proof and source of funds, to make sure the money is coming from a legitimate source. Andrews charge an administrative fee of £62.50 plus VAT (£75 including VAT) for carrying out these anti-money laundering checks. For more information, read our guide on anti-money laundering checks for sellers.