How much does it cost to sell a property at auction? A guide for UK property owners. How much does it cost to sell a property at auction and how do the sale costs compare to an estate agency sale? Find out about the costs for selling your house or flat at auction and how to save money by passing some of your costs to the buyer.
How much are property auction fees?
Selling a property at auction costs less than most people think. The total cost is about the same you would expect to pay a traditional high street estate agent. There are 3 costs to consider when selling a property at auction:
- (1) COMMISSION - The auctioneers commission is around 2% to 3% + VAT of the final sale price and that's only paid when the property successfully sells.
- (2) ENTRY FEE - Most auctioneers request an upfront catalogue/entry fee of around £300 + VAT or more, but it may be possible to postpone payment until after the property has successfully sold.
- (3) AUCTION LEGAL PACK - The seller's solicitor is responsible for preparing the auction legal pack at the cost of £200 or more, which is payable before the auction.
It's worth knowing that the legal pack will not always mean an additional cost. If you have already been through a private treaty (estate agency) sale that fell through, your solicitor can often reuse the documents they prepared, so there may be little or nothing extra to pay.
Some auctioneers will also arrange the legal pack for you with no upfront payment, with the cost deducted or settled once the property successfully sells.
Timing is important too. Most auction selling costs only become payable after the property has sold, which can make the overall cost much easier to manage and budget for.
Passing your auction sale costs to the buyer
A key benefit of selling at auction is the complete control the seller has over the contract of sale, there's no input from the buyer. This means the seller can dictate terms like the completion date, responsibilities of the buyer after exchange and any extra costs to be paid by the buyer.
By adding a simple clause to the contract of sale it's possible to pass all (or part) of your auction costs and legal fees to the buyer, in fact it's standard practice for regular auction sellers (e.g. property traders, banks and local authorities). Some buyers will not bid as high for the property if they spot the clause in the legal pack, but others will not worry.
If you want to do this, let your solicitor know as early as possible. The clause should be included in the special conditions of sale and, ideally, be in place from the moment the legal pack goes live.
It can be added later if necessary, but it is good practice to have the special conditions settled before buyers begin reviewing the pack. Changes close to auction day can unsettle bidders, particularly if they have already worked out their maximum bid based on the original terms.
It is also worth checking with the auction company. Although this is common practice, some auctioneers may not allow it, so it is better to raise the point early rather than assume it will be accepted.
Negotiating sales commission with the auctioneer
The starting rate for an auctioneer's commission is typically 2% to 3% + VAT and that's only paid when the property successfully sells. So if a property sells for £200,000 the commission payable to the auctioneer at 2% would be £4,000 + VAT.
You can save money by passing costs to the buyer. And some auctioneers offer a no sale no fee service.
For higher value or particularly saleable properties the auctioneer might be prepared to reduce their commission, but there is a lot of organising and marketing that takes place for the auctioneer to be able to justify their fee.
Auctioneers usually charge a minimum selling fee of anything from £1,500 upwards, so if a low value property (such as a garage) sells for £10,000 the 2% commission rate will not apply, otherwise the fee would only be £200. Instead the auctioneer will charge the minimum selling fee.
TIP: Compared to some of the newer methods of selling, such as paying an online estate agent a fixed fee, selling a property at auction may seem relatively expensive. So it's worth a quick cost benefit analysis to see if auction will pay off for you.
How much does it cost to prepare the auction legal pack?
The auction legal pack is crucial for the successful sale of a property at auction, it contains all the legal information (e.g. land registry documents, deeds, searches, property information questionnaires, lease documents, tenancy agreements etc) relating to the property. So the more information there is in the legal pack the more confident prospective buyers will be when bidding on auction day. It's therefore important not to cut costs when preparing the legal pack as it may adversely affect the final sale price. Costs for preparing an auction legal pack for a freehold property can be anything from £200 upwards. For a leasehold property the cost of obtaining the management information pack from the freeholder/landlord will add another £200 or more.
Most of these legal costs are not unique to selling at auction. When selling through an estate agent or privately the seller will also need to prepare legal documents for the prospective buyer. It's only the searches (local authority search, water search etc) that are obtained by the buyer in the case of an estate agency sale, but by the seller in the case of an auction sale.
Who pays for the survey?
We're occasionally asked whether the seller needs to include a survey report for their property in the auction legal pack. The survey report is NOT the responsibility of seller. There is no expectation for a survey report to be included in the auction legal pack.
Many of the buyers at auction are cash buyers, so will not require a survey. However, if the buyer does require a survey, they will need to have sorted that out (and seen the report) before bid on auction day. With an unconditional auction sale, the buyer is bidding to buy - full stop! They're not bidding to buy subject to contract or survey.
Costs for selling a house by auction?
Request a free valuation and auction sale cost estimate for your property today. In some cases we may need a few more details about your property before providing a free and no-obligation auction sale estimate.
Free EstimateCosts for cancelling or withdrawing from auction
If you've booked your property into auction, but then have a change of plan, you may be liable to paying the auctioneers withdrawal fee if you decide to back out of the auction sale. Auction withdrawal fees vary, but can be as much as the full commission rate you would have been liable to pay if your property had successfully sold.
It's worth noting that if you signed the auctioneers' terms remotely (i.e. not in the auctioneers office) there will usually be a 14 day cooling off period. However, since the timescales for selling at auction are very quick, the auctioneer might ask you to tick a box on the auction contract that waives your right to cancel, in order for them to commence their service immediately, and begin marketing your property as soon as possible.
Other costs to consider when selling a property at auction
As with selling a property through an estate agent or privately, there are other costs to be considered when selling a property, they include; legal fees, moving costs and taxes that might be due. For example capital gains tax on buy-to-let properties and inheritance taxes for probate sale. Also consider whether any early redemption penalties might be due on your mortgage or secured loans. These are all payments your solicitor will be able to help you calculate when determining your bottom line sale price i.e. your reserve price.
If the property doesn't sell at auction there will usually not be any costs or obligations to the seller, unless stated in the auctioneers terms.
Are there any costs to pay if a property fails to sell at auction?
Just like selling through a traditional high street estate agent, the auctioneers commission works on a "no sale no fee basis". So the sales commission is only payable when the property is sold and contacts are exchanged, without that happening the auctioneer won't charge their fee. If a property fails to sell the only costs incurred by the seller would be their legal fees (for preparation of the auction legal pack) and any entry/catalogue fee that may have been paid before the auction.
A property that goes unsold at auction is treated differently from one that you withdraw beforehand. Withdrawing can sometimes trigger a separate fee, which may be as much as the commission you would have paid if the property had sold. By contrast, if the property simply fails to reach its reserve price, there is usually nothing further to pay.
Cost benefit analysis - is it worth selling at auction?
With so many low-cost online estate agents to choose from, does an auction sale provide value for money? Apart from the speed and reliability an auction sale offers, from a purely financial perspective, is it worth it? Can you achieve a higher sale price at auction compared to any other method of sale? The answer depends on the type of property being sold, some properties sell for considerably more at auction compared to estate agency sales due to two key features of auction; competition and transparency.
Competition
Property developers, amateur DIYer's and ambitious owner occupiers will compete to buy a property at auction in the knowledge they'll be able to refurbish it cost-effectively and either sell on for a profit or live there themselves. The key word being compete. In an auction environment, where the price can only go one way (up) it's the competitive bidding environment that drives the price up.
Transparency
In a closed/private sale environment, such as an estate agent sale (also known as a "private treaty" sale) the estate agent has a high level of influence over negotiations. If after a few months of marketing a property the estate agent tells the seller that £100,000 is a fair price, the seller will probably be inclined to accept an offer around that level. By keeping the property in the hands of one or two estate agents the sale lacks transparency.
In fact, a highly lucrative market exists for property traders who purchase problem properties through estate agents one week and flip them at auction the next week - the properties are sold for considerably higher prices as "properties with potential" in the transparent and competitive bidding environment that's found at public auction.
Ready for auction?
Request a free valuation and reserve price estimate for your property today. In some cases we may need a few more details about your property before providing a free and no-obligation auction sale estimate.
Free EstimateQuestions and Answers
Do properties sell for lower prices at auction?
Some types of property are particularly well suited to sale by auction; properties in need of modernisation or with potential are ideal for auction and will achieve a higher sale price at auction compared to an estate agency sale. But properties with their potential exhausted will usually sell for more by private treaty (estate agency) sale, unless the property is unique or in a very good location, in which case the top price may be found through competitive bidding at auction.
What happens if an auction property doesn't sell?
Most properties do successfully sell at auction, it's considered the most reliable method of sale. If bidding doesn't reach the reserve price on auction day your property will be made available as an unsold lot. The auction company will contact all interested buyers and ask for their best and final offers. If a property doesn't sell first time around it can be entered into a subsequent auction, that might be 4 or 6 weeks later.
What costs are paid upfront and after an auction sale?
The costs for selling at auction works out to be about the same as using a good high street estate agent. Commission at around 2% to 3% + VAT if the final sale price is only payable on successful sale. Some auctioneers charge an upfront entry fee of £200 to £500, but this can be negotiable and only payable after sale.
How quickly can a property be sold at auction?
Legal exchange of contracts can take place within 3 to 4 weeks, with completion of sale a further 4 weeks later. Timings are flexible; if a seller needs to complete sooner or later, they can ask their solicitor to shorten or extend the completion date.
How do you find a good local property auctioneer?
There are hundreds of property auctioneers in the UK. The best suited auctioneer for your property will depend on the property type and location. Looking at the past auction results (usually available on the auctioneer's website) can be a good starting point to short list a suitable auctioneer.
Popular auction resources
- Guide to selling your house at auction
- Risks and disadvantages of auction sales
- Frequently asked questions
- Online property auction sale costs
- Request an auction sale price estimate
Next steps...
Why not request a free pre-auction appraisal for your property? It only takes a few seconds. Or feel free to call us on 0800 862 0206 if you have any questions.
UK Property Market Update: September 2026
The autumn market has opened with something we have not been able to report for a while: buyers are coming back. Zoopla measured buyer interest up 7% on a year ago in late August, the strongest annual rise in twelve months, and Rightmove recorded a 5% lift in demand since late July. The catch is that those buyers have never had more to choose from. The number of homes for sale is at a 12-year high for the time of year, and the homes that are selling are the ones priced for today's market rather than last year's.
The other change since our last update is the interest rate outlook. Inflation has ticked back up, and when the Bank of England meets on 17 September the question is no longer when rates will be cut but whether they might rise. That combination, returning buyers, abundant stock and borrowing costs that are not falling, is the backdrop for anyone planning an autumn sale.
House prices and activity
Sold prices are broadly flat. Nationwide's August figures put the average home at £275,465, up 0.2% on the month and 1.6% over the year. Zoopla has annual growth at 0.9% on an average of £272,800 and still expects roughly 1% by the end of the year. The Lloyds index (the renamed Halifax index) is the softest of the lot, showing prices just 0.1% higher than a year ago at an average of £299,253.
Asking prices are another matter. Rightmove reported the average price of a newly listed home down 2.0% in August to £364,999, the biggest August fall it has recorded in eight years, leaving new asking prices 1.0% below where they stood a year ago. Rightmove has also cut its forecast for 2026 asking prices from 2% growth to somewhere between flat and minus 2%. London is the weak spot, with new asking prices down 3.1% over the year, while the North West leads the country at 3.1% growth. Sellers, in other words, are doing the adjusting, and the ones who adjust are being rewarded: Zoopla's count of sales agreed is now 6% below last year, a clear improvement on the 9% shortfall we reported a month ago.
Interest rates
There was no rate meeting in August, so the base rate stays at 3.75% following July's narrow 6-3 vote, in which the three dissenters all wanted a rise. The next decision comes on Thursday 17 September. Markets currently price roughly a three-in-four chance of a hold, which means about a one-in-four chance that the rate goes up to 4%. Most economists polled by Reuters expect no change for the remainder of 2026. Either way, the days of planning a sale around the next rate cut are over for now.
Inflation
Inflation is the reason a rise is even being discussed. CPI climbed to 2.9% in the year to July, up from 2.6% in June and the first increase since March. Energy did the damage: Ofgem's price cap rose 13% at the start of July and gas prices jumped 14.7% in a single month, with wholesale costs still elevated after the disruption in the Middle East. The August reading, published in mid-September, will land two days before the Bank's decision and will do a lot to settle the argument.
Mortgages
Mortgage rates drifted up over the summer before steadying. The average two-year fix across the whole market reached about 5.61% in mid-August and the five-year 5.64%, both roughly a tenth of a point higher than a month earlier, though late August brought a round of trimming from big lenders including Barclays and Nationwide. Borrowers with larger deposits continue to do much better, with lower loan-to-value two-year fixes averaging around 5.1%. Anyone coming off a fixed rate should still budget for higher payments than last time and speak to a broker early rather than waiting on a September cut that may not come.
What does this mean for property auctions?
The auction year restarts in earnest this month. Most of the established “on-the-day” auction houses took August off, and the first big ballroom sale of the season is Barnard Marcus on 10 September, with the rest of the major London and national auctioneers holding sales through the middle of the month. Entries for the October catalogues close over the next few weeks, so if you want an autumn sale, now is the time to make contact.
The longer-term numbers remain strong. Essential Information Group's rolling 12-month figures show 27,268 residential lots sold, up 9.9% on the previous year, raising just under £5 billion, and the second quarter of 2026 matched the first at around £1.5 billion raised. July itself was quieter, as it usually is: 2,864 lots sold across the month at a sale rate of about 65%, down from 70% a year earlier. The auction room is not immune to the wider market, and the same rule applies under the hammer as on the portals: buyers are active but selective, and the lots that sell are the ones with realistic guide prices.
What is notable is where the new auction stock is coming from. Industry press spent August reporting a boom in enquiries from “frustrated sellers”, owners who have sat on the open market through the spring and summer without a result and now want the certainty of a fixed sale date. It is not hard to see why. At auction, contracts exchange on the fall of the hammer and completion follows within weeks, with no renegotiation and no chain to collapse, against a private-treaty process that still averages around five months from accepted offer to completion.
Landlords continue to feed the room too. With Section 21 evictions gone since 1 May under the Renters' Rights Act, and new rules preventing a landlord from evicting to sell during the first 12 months of a tenancy, selling with tenants in place at auction is increasingly the practical route, and portfolio buyers bid readily for lots that arrive with an income attached. Some landlords are also watching the calendar: the Autumn Budget falls on 28 October, with speculation about capital gains tax changes refusing to die down, and further property income tax rises already scheduled for April 2027. An auction sale agreed in September can complete comfortably before Budget day; a sale agreed through an estate agent cannot.
The message for sellers this autumn is the same one the wider market is teaching everyone else, just with a better ending. Buyers are back, but they are choosy. Price realistically, give them a reason to compete, and the auction room remains one of the few places where that competition still happens in the open.