Who Pays Auction Fees? Buyer or Seller?

Property auctions have started to become a popular route for both buyers and sellers in the UK property market.

More people are choosing auctions over traditional estate agent sales because they offer buyers access to competitively priced properties and provide sellers with assurance of a sale.

While the auction bidding process is straightforward, the associated costs are not always clear.

There are a lot of hidden fees involved, which often leads to the same question from both sides of the transaction: who pays auction fees, the buyer or seller?

The short answer is that both buyers and sellers pay auction fees, but they pay different types of fees at different stages and for different reasons.

The structure of these fees can also vary depending on whether the property is sold through a traditional or modern auction.

In this guide, we break down who pays what, how much auction fees typically cost, and what buyers and sellers should budget for before entering a UK property auction.

So, who actually pays auction fees, the seller or the buyer?

In most UK property auctions, fees are split between the two parties:

• The seller pays to market and sell the property
• The buyer pays to secure and complete the purchase

The confusion often stems from how auction houses present fees.

Some costs are deducted from the sale proceeds, while others are paid immediately on auction day.

The fee structure varies across auction houses and formats, so it’s important to review the terms before bidding or listing an auction property.

Auction fees for the buyer

Buyers should never assume that the winning bid represents the total cost of purchasing a property.

In reality, buyers are responsible for several additional fees that must be paid immediately upon auction close.

Common buyer fees include:

• A buyer’s premium or administration fee. This is a non-refundable fee, even if the buyer fails to complete.
• A deposit, typically 10% of the purchase price.
• Legal and conveyancing costs. This covers the legal work required to complete the purchase.
• Survey and valuation fees. This is particularly important for properties with structural or legal issues.
• Mortgage arrangement costs (if applicable). This includes arrangement fees, valuation fees, and broker charges.
• Stamp Duty Land Tax (SLDT). This fee is payable based on the purchase price, subject to current thresholds.

Buyers may also choose to pay for a solicitor to review the legal pack before bidding. While optional, this is strongly recommended for properties with short leases, title issues, or repossession status.

Expect to pay anywhere between £300 and £800 plus VAT.

Auction fees paid by sellers

Sellers also incur auction fees, though these are often less visible because they are deducted from the sale proceeds after the sale is completed.

Typical seller fees include:

• Auctioneer commission. This is typically 1%-3% of the final sale price, plus VAT.
• Marketing and advertising costs. This includes photography, listings, catalogue placement, and promotional upgrades.
• Legal pack preparation. This is the cost of assembling the legal pack, including the title documents and searches.

One reason sellers choose auctions is that these costs are agreed upfront, making them more predictable than those in traditional estate agent sales. However, sellers should still review contracts carefully to understand what is included and what may be charged separately.

How much are the auction fees?

The total costs of an auction transaction can vary significantly depending on the auction house, property type, and sale method. As a general guide, here’s how much you can expect to pay in the UK:

• Buyer administration fees: £600 to £1,500
• Seller commission: 1% to 3% of the sale price
• Deposit: 10% of purchase price
• Legal and conveyancing fees: dependent on complexity
• VAT: may apply to certain fees and properties

Because of this variation, both buyers and sellers should calculate the full transaction cost before committing.

Remember: Auction fees are not negotiable once bidding begins.

Conveyancing Fees

Conveyancing fees cover the legal work required to transfer ownership of a property from seller to buyer.

In an auction sale, conveyancing is especially important because contracts are exchanged immediately upon the auction's close.

For buyers, conveyancing usually includes:

• Reviewing the legal pack before the auction
• Handling completion
• Registering the property with HM Land Registry

For sellers, conveyancing covers:

• Preparing the legal pack
• Responding to pre-auction enquiries
• Completing the sale after the auction

Because auction timelines are shorter than traditional sales, both parties should instruct a solicitor early to avoid delays or legal issues.

VAT on Property Purchases

VAT can apply in certain auction scenarios, but not all properties are subject to it.

In the UK:

• Residential properties are generally exempt from VAT.
• Commercial properties, new builds, or properties opted into VAT may attract VAT on the purchase price.

VAT may also apply to:

• Auctioneer commission
• Administrative fees
• Legal and conveyancing services

Failing to account for VAT can significantly increase the total amount payable. Buyers and sellers should always confirm VAT liability before entering an auction.

Administrative Fees

Administrative fees are usually charged to buyers and are payable immediately after a successful bid. These fees cover the auction house’s costs for processing the sale and are usually separate from the purchase price.

In traditional auctions, administrative fees are typically fixed. In modern method auctions, they may take the form of a reservation fee, which is often higher and non-refundable.

Because these fees are payable upfront, buyers should factor them into their budget before bidding to avoid unexpected costs on auction day.

Additional Expenses to Budget For

Beyond headline auction fees, there are additional costs that buyers and sellers should plan for, including:

• Survey and valuation costs
• Specialist reports (such as structural, environmental, or asbestos)
• Mortgage arrangement fees
• Insurance during the completion period
• Removal and storage costs

While these costs are not unique to auctions, the shorter timelines involved mean there is less flexibility if expenses arise unexpectedly.

Planning for additional expenses helps reduce financial pressure after the auction concludes.

Do auction fees count towards stamp duty?

In most cases, auction fees do not count towards stamp duty, as Stamp Duty Land Tax is calculated based on the property’s purchase price.

However, if fees are incorporated into the contract price rather than charged separately, this may affect how stamp duty is assessed.

Buyers should always confirm this with their conveyancing solicitor.

Auction fee calculator

A UK auction fees calculator helps buyers and sellers estimate the total cost of an auction transaction before committing.

Most calculators factor in:

• Buyer administrative fees
• Seller commission
• Deposits
• VAT
• Legal and conveyancing fees

While useful, calculators should always be used alongside the auction house’s official fee schedule and legal pack.

Frequently Asked Questions

Final thoughts: Who pays auction fees buyer or seller?

In UK property auctions, both buyers and sellers pay fees, but they differ depending on the purpose. Sellers cover the cost of marketing and selling the property, while buyers pay the costs required to secure and complete the purchase.

Understanding who pays what and when helps both parties budget accurately and avoid surprises. Whether you’re a first-time buyer or an experienced investor, understanding how auction fees work is essential before bidding.

PropertyAuctions supports buyers and sellers by offering practical resources and access to professionals experienced in auction transactions, so you can prepare properly before auction day.