How much does it cost to sell a house at auction UK?

Answer

Selling your house at auction can be a quick way to secure a sale, especially if you want to lower your risk of the sale falling through. Auction sales come with their own costs, however, and it's important to know what to expect before you commit.

Why sell your house at auction?

Selling your house at auction can be appealing for many reasons, especially if your property needs a lot of repairs or it's difficult to sell on the open market.

Selling at auction can often ensure a quick sale, sometimes within a matter of weeks. This speed can be particularly beneficial if you need to sell fast due to financial reasons or a need to relocate. You can also set a reserve price on your property so make sure it doesn't sell below a certain amount, ensuring you get a fair price. 

Generally, selling at auction will also attract more serious buyers who are ready to commit, reducing the risk of the sale falling through.

How much does it cost to sell a house at auction UK?

When selling a house at auction, there are many fees that you’ll need to consider to make sure it's the most cost-effective option. While every auction house will have different fees, here’s what you’ll need to consider:

Auctioneer's commission for selling a house at auction

Auctioneers will usually charge a commission based on the final sale price of your property, which often ranges from 1.5% to 3% plus VAT. You should always discuss and agree on this before you sign any paperwork with the auction house.

Entry fee for selling property at auction

The entry fee covers the cost of listing your property in the auction catalogue and marketing it to potential buyers. The entry fee will depend on the value of your property and whether the auction house thinks it will need any special marketing.

Legal pack costs for auction property

A legal pack is essential for potential buyers to review before the auction. This pack, prepared by your residential conveyancing solicitor, includes important documents like title deeds, searches, and any tenancy agreements.

Room hire fee for traditional house auctions

If you choose to sell your property through a traditional auction, there may be a room hire fee for the venue where the auction is held. This cost varies but can cost up to a few hundred pounds.

Online auction fees for selling property

Selling your house through an online auction platform can sometimes be more cost-effective. Online auction fees may include a listing fee and a percentage of the sale price, which is often lower than traditional auction room fees.

Additional costs of selling a house at auction

There are also several other potential costs you’ll need to consider when selling a house at auction. This includes:

Surveys

Conducting a survey on your property can help identify any issues that might deter potential buyers. Survey costs vary significantly depending on your location, the property type, and the extent of the survey required.

Energy Performance Certificate (EPC)

An EPC is a legal requirement when selling a property. The cost of obtaining an EPC typically ranges from £35 to £120.

Other reports

Depending on the property's location and condition, you might need additional reports such as environmental searches or drainage and water searches. These can add a few hundred pounds to your overall costs.

Selling a House at Auction: Pros and Cons

Selling a house at auction can sometimes be a cost-effective alternative to selling on the open market, but it comes with its own set of advantages and disadvantages:

Pros

• Quick Sale: Auctions typically result in a faster sale compared to traditional methods.
• Competitive Bidding: The auction environment can drive up the final sale price as buyers compete against each other.
• Certainty: Once the hammer falls, the sale is legally binding, reducing the risk of the sale falling through.

Cons

• Costs: There are various fees associated with selling at auction, including auctioneer's commission, entry fees, and legal costs.
• Risk of Low Price: There's a risk that the property may sell for less than expected if there are few bidders.
• No Guarantee: If the reserve price isn't met, the property won't sell, which can be frustrating and costly.

Why GloverPriest?

Selling a house at auction can be a complex process, particularly if it's your first sale. At GloverPriest, our experienced Auction Solicitors will make your purchase as simple and easy as possible.

GloverPriest Solicitors is fully accredited by the Conveyancing Quality Scheme (CQS) - the recognised quality mark for legal experts - so you know our residential conveyancing standards are set high.

If you need help buying a house at auction, our specialist property lawyers are here to help. Get in touch today.