When selling at auction, understanding the associated fees is essential for planning and maximising your returns. Here’s a clear breakdown of auction fees and what they mean for sellers.
Entry Fee
The entry fee covers the cost of marketing your property, including advertising and promotional materials. This fee ensures your property reaches the right audience, maximising its exposure. The entry fee is sometimes deferred until the after property is successfully sold, meaning there are no up-front costs.
Auctioneer’s Commission
The auctioneer’s commission is typically a percentage of the final sale price, ranging from 1.5% to 3% plus VAT. This fee is only payable if your property sells, aligning the auctioneer’s incentives with your success.
Legal Pack Costs
Creating a legal pack is crucial for the auction process. This cost is usually borne by the seller and can include title deeds, lease details, planning permissions, and any relevant surveys. Expect to budget £300–£500 for a basic legal pack. First for Auctions commission and pay for the searches so there are no marketing delays then recover the cost from the eventual buyer, so there are no up-front costs for the seller.
Additional Costs
Depending on your auctioneer, there may be other fees, such as withdrawal fees if you decide to pull your property before the auction. Always confirm the full cost structure upfront.
Is Auctioning Cost-Effective?
While fees are part of the process, the competitive bidding environment often leads to higher sale prices, offsetting costs. Additionally, the speed and certainty of auctions can provide significant value, especially for time-sensitive sales.
Understanding fees ensures you’re prepared and can make informed decisions. Contact First for Auctions for transparent advice on selling your property.
