The average cost for auction conveyancing when buying in the UK is £15,126, this figure includes £8,949 which can be passed on from the seller's own costs.
Your auction conveyancing costs will vary depending on your chosen firm and the amount of notice given. It will also depend on some of the additional fees associated with the purchase that your conveyancer will invoice you for.
| Conveyancing Costs for Buyers | Fees* |
|---|---|
| Auction Fees | £7,008 |
| Entry Fee | £375 |
| Legal Pack | £300 |
| Stamp Duty | £4,600** |
| Conveyancing | £1,743** |
| Survey and Valuation Costs | £940** |
| Indemnity Insurance | £160 |
| Conveyancing Costs for Seller | Fees |
|---|---|
| Auction Fee | £7,008 |
| Entry Fee | £375 |
| Legal Pack | £300 |
| Valuation | £452** |
| Conveyancing | £814** |
*These figures are based on the average UK property price of £292,000.
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Auction Fees for Sellers
On average you can expect to be charged a fee of up to 2% plus VAT to go to the auctioneer after the sale has been completed. For instance, with an average UK property valued at £292,000, you would need to budget around £7,008. Though many auction houses offer a 'no sale no fee' service which offers some reassurance.
Auction fees, sometimes referred to as administration fees, can vary depending on the property. You must review the auction house terms before proceeding to ensure you have the funds for this additional cost.
Auction Entry Fee for Sellers
Some auction houses may ask for this fee, so it is worth checking beforehand. The fee is the responsibility of the seller and is between £250 and £500 and can be paid once the property is sold. It is sometimes referred to as the marketing fee and is the amount the auction house commands for listing your property.
Legal Pack for Sellers
According to Hammered Auctions it can cost between £200 - £400 for the legal pack. It is the responsibility of the seller to get this arranged. This pack helps inform the buyer of the condition and legalities surrounding the property. While it is not a legal requirement many conveyancers will expect to see one. The following is included:
Land Registry documents
Title Deed
Property information questionnaires
Conveyancing search results
Lease and tenancy agreements (for leasehold properties)
Energy Performance Certificate (EPC)
Stamp Duty for Buyers
Stamp Duty Land Tax (SDLT) for the UK average property price, which is currently £292,000, is £4,600. This needs to be paid to HMRC after the property has been purchased along with the balance of the purchase to the auction house.
Stamp Duty only applies to properties worth more than £125,000 in England and Northern Ireland. It also applies to any second homes worth more than £40,000.
In Scotland, it’s referred to as the Land and Buildings Transaction Tax (LBTT), with the main difference being the threshold is £145,000. You would have to pay £4,200 in taxes for a property in Scotland worth £292,000.
In Wales, it’s called the Land Transaction Tax (LTT), with a higher threshold of up to £225,000 before LTT applies. This results in £4,020 for a property worth £292,000
Conveyancing
The average cost of conveyancing for buying property is £1,743**, whereas for selling it is £814** both based on the average UK house price of £292,000. This cost will depend on the properties location, size and value. Some specialist firms may charge more than this however for auction purchases.
Survey and Valuation Costs
On average, a house survey costs between £380-£629. It is the responsibility of the buyer and could be a highly valuable exercise, even if the property doesn't end up being yours. This can save you thousands of pounds if your bid is successful and results in significant repairs.
A valuation is needed for a seller so you know what your property's valuation is. But for the buyer, it is also worth getting the surveyor to include a valuation. This will give you the property's true worth based on its condition and local geography. A RICS Valuation Report costs around £452, based on the average UK house price of £292.000.
Indemnity Insurance
Indemnity Insurance is a protective insurance policy taken out during property transactions. The cost can vary between £20 to £300 and covers against any legal property issues that would be difficult to resolve. The seller will typically be responsible for taking out this policy as it is in their best interest to ensure the sale goes without any problems.
Auction Conveyancing Costs for Buyers and Sellers
Many costs are associated with buying or selling a property at auction. Many of these costs come at the seller's expense, though they can be passed onto the buyer, which will need to be written into the legal pack. Its also worth keeping in mind that should sellers pass all of their fees to the buyer, it may limit the amount of prospective bidders. In the table below we've broken down these costs and who is responsible:
| Item | Buyer | Seller |
|---|---|---|
| Auction Entry Fee | X* | |
| Legal Pack | X* | |
| Conveyancer | X | X* |
| Auction House Commission | X* | |
| Valuation Survey | X* | |
| Indemnity Insurance | X* | |
| Stamp Duty | X |
*Fee can be passed on to the buyer
Weighing Auction Sale Costs vs. Traditional Sales
Estate agents and auction houses both handle the marketing and selling of the property on your behalf. However, the cost of selling a property at auction is typically more expensive due to the speedy process.
In the table below, we have provided average fees and the total cost based on our data*:
| Low-end Cost (£) | High-end Cost (£) | Median Cost (£) | |
|---|---|---|---|
Conveyancing Fees | £696 | £1,468 | £814 |
Entry Fee/Marketing Costs | £250 | £500 | £375 |
Legal Pack | £200 | £400 | £300 |
Commission | 2% + VAT | 3% + VAT | 2.5% + VAT |
Total | £6,986 +VAT | £11,128 + VAT | £8,789 + VAT |
*This is based on the UK property price average of £292,000
Sellers gravitate to auctions as the purchase becomes a legally binding sale once the hammer falls. They also provide a more extensive marketing package compared to estate agents as they aim to draw in as many buyers as possible.
It’s also important to note that most properties sold at auction are aimed at cash buyers only and are often chain-free. This contributes to the smoother sale process.
Many auction properties need refurbishing. The seller can choose whether to carry out maintenance repairs. If they choose not to, they must disclose any known defects in the legal pack.
Traditional Selling Costs
The average cost of selling a house conventionally is £6,739, based on the UK average house price of £292,000. Most of this amount is the estate agent fees which make up £5,840 of this cost. The rest of this fee is made up of disbursements and potential extra costs.
High-street estate agents will typically take an average commission rate of 1% to 3.5% plus VAT of the agreed sale price. Online estate agents are often cheaper, charging an average fixed fee rate between £300 and £1,500 regardless of the property price.
When Do You Instruct a Conveyancer on a Auction Property When Buying?
The auction conveyancing process is faster than the traditional timeline. This is because the majority of legal work is completed prior to the auction. Strict deadlines are also set for exchange and/or completion which must be met by all parties. You should research the auction type, the fees (if any) that you will be required to pay. This is in addition to the purchase price and any deadlines for exchange or completion.
Following the research you should then look at getting an auction conveyancer. This should be done as soon as you have decided on the property you wish to bid on and have received the legal pack.
Once you have sent them the pack, they will likely review it within 48 hours depending on their workload. They can also tell you if anything is missing from the pack.
Read more on what goes into a legal pack
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Do I Need a Mortgage to Buy an Auction Property?
There are certain properties that are sold at auction that can be deemed unmortgageable. You should find out from your solicitor and mortgage lender whether the property meets the criteria for a mortgage loan.
Read more about buying a house at auction with a mortgage.
Is Buying at Auction Legally Binding?
For traditional auctions, it becomes legally binding the moment the ‘gavel falls’. The successful bidder will have 28 days to complete.
For modern auctions, once the bid is accepted, there is a 28 days to exchange contracts. At this point it becomes legally binding. Once that is done, there are 28 days to complete.
Save money on your conveyancing costs
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Finding Property Auction Solicitors
Whether you are planning to buy or sell a property at auction, it is essential that you use an experienced conveyancer to help you with this. They can spot issues surrounding title deeds and other legalities. They will be used to the fast paced nature of these transactions, therefore will be able to get documentation created and reviewed at speed.
Using our comparison form allows you to get quotes from up to 6 conveyancing firms. You’ll be able to speak to each one, getting an understanding of their experiences in particular with auctions.
All our conveyancing partners have passed a strict verification process. This includes being regulated by one of the following:
Solicitors Regulation Authority (SRA)
Council for Licensed Conveyancers (CLC)
Law Society of Scotland (LSS)
Law Society of Northern Ireland (LSNI)
Chartered Institute of Legal Executives (CILEX)
**Based on the average service costs for Compare My Move users. See how our data works.
