One of the most common questions we get: “What does this cost me?” Here’s the honest breakdown of every auction reservation fee and cost you will meet.
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The auction reservation fee is the buyer’s commitment, and it is the cost most people ask about first. On reservation lots it is a non-refundable fee of 5% plus VAT, with a minimum of £6,000 plus VAT, paid by the buyer when they commit to buy. You do not pay it as a seller, but it helps to understand it, because it explains why buyers take the sale seriously.
Because the auction reservation fee is paid up front, a buyer who bids on your property is making a real commitment. That is one reason an auction sale is harder to walk away from than an open market offer. The fee does not count towards the purchase price, so buyers budget for it separately from the price they bid. In practice that means a buyer will have the reservation fee in hand before the auction day, and the auction terms set out exactly when it is payable and how it is applied to the sale.
As a seller, your own costs are simpler to predict. The 0% Sales Fee applies to the sale, and you will still need a solicitor to handle the legal work. Setting the auction reservation fee and your own costs side by side makes it easier to compare the true cost of selling at auction with other routes.
For the wider steps every buyer and seller should understand, the government’s guidance on buying and selling your home is a useful starting point.
What the Seller Pays
Nothing, with Zelto’s referral. No listing fee, no commission, no cost if the property doesn’t sell.
The Auction Reservation Fee Buyers Pay
- A non-refundable reservation fee of 5% plus VAT (minimum £6,000 plus VAT), paid when they commit to buy. This does not count toward the purchase price.
- Their own legal and survey costs, same as any property purchase
How This Compares to a Traditional Estate Agent
An estate agent typically charges the seller 1 to 3% commission, deducted from what you receive. With auction, the buyer covers the fees, and what you’re quoted as your sale price is what you get.
Anything Else to Watch For?
You’ll need your own conveyancing solicitor, as with any sale, and every property comes with a Legal Pack (title deeds, special conditions, searches) that should be reviewed before bidding opens. Beyond that, there are no hidden charges on the seller side.
Want to see what these fees would mean for your sale? Your valuation is free, with no obligation to go ahead.
Frequently asked questions
Frequently asked questions
What does the seller pay to sell at auction?
Nothing, with Zelto’s referral. There is no listing fee, no commission, and no cost if the property doesn’t sell.
What does the buyer pay?
A non-refundable reservation fee of 5% plus VAT, minimum £6,000 plus VAT, paid when they commit to buy. This does not count toward the purchase price. They also pay their own legal and survey costs.
Do I still need a solicitor?
Yes. You will need your own conveyancing solicitor, as with any sale. Every property comes with a Legal Pack (title deeds, special conditions, searches) that should be reviewed before bidding opens.
How does that compare with an estate agent’s fees?
An estate agent typically charges the seller 1 to 3% commission, deducted from what you receive. With auction, the buyer covers the fees, and what you are quoted as your sale price is what you get.
Are there any hidden charges on the seller side?
Beyond your own solicitor and the Legal Pack, there are no hidden charges on the seller side.
