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Auction costs

Nagai
Nagai Posts: 12 Forumite
10 Posts Second Anniversary
in House buying, renting & selling
Hi all,

I'm looking at an auction property that's coming up soon, and as well as the auctioneer taking 3.5% + VAT, there is also a payment of 2.5% + VAT to go to the seller.

Is this a common thing?

Mr N.

Comments

  • GDB2222
    GDB2222 Posts: 26,945 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    No.

    Is that a modern auction? 
    No reliance should be placed on the above! Absolutely none, do you hear?
  • theartfullodger
    theartfullodger Posts: 15,988 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Who cares if it's common or not.  Cost of property to you will be price plus all fees.

    It doesn't matter if there are no fees but price is £125k, or if price is £110k with fees of £15k.  Same bleedin' cost to you - £125k!

    Have you read the WHOLE auction pack?

    Ever bought a property at auction before?? (I have, but could afford risks...)
  • GDB2222
    GDB2222 Posts: 26,945 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    theartfullodger said:
    Who cares if it's common or not.  Cost of property to you will be price plus all fees.

    It doesn't matter if there are no fees but price is £125k, or if price is £110k with fees of £15k.  Same bleedin' cost to you - £125k!

    Have you read the WHOLE auction pack?

    Ever bought a property at auction before?? (I have, but could afford risks...)
    It certainly does matter! This sounds like a modern auction, which should be avoided.
    No reliance should be placed on the above! Absolutely none, do you hear?
  • user1977
    user1977 Posts: 19,497 Forumite
    Eighth Anniversary 10,000 Posts Photogenic Name Dropper
    GDB2222 said:
    theartfullodger said:
    Who cares if it's common or not.  Cost of property to you will be price plus all fees.

    It doesn't matter if there are no fees but price is £125k, or if price is £110k with fees of £15k.  Same bleedin' cost to you - £125k!

    Have you read the WHOLE auction pack?

    Ever bought a property at auction before?? (I have, but could afford risks...)
    It certainly does matter! This sounds like a modern auction, which should be avoided.
    Nah, a modern auction would have the agent pocketing the whole lot rather than have a fee going to the vendor.
  • eddddy
    eddddy Posts: 18,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper

    Increasingly with 'traditional' auctions, sellers are adding a 'special condition' that the buyer must contribute to the seller's selling costs.

    So I'd guess that the 2.5% + vat is intended to cover the selling costs.

    I'm slightly surprised that the auction houses let sellers get away with this - as it's probably reducing final hammer prices (e.g. by 2.5%) - and so it's reducing the auction house's commission (e.g. by 2.5%).


  • Nagai
    Nagai Posts: 12 Forumite
    10 Posts Second Anniversary
    GDB2222 said:
    No.

    Is that a modern auction? 
    No, it’s a traditional auction, by a fairly large auction house. 
  • Nagai
    Nagai Posts: 12 Forumite
    10 Posts Second Anniversary
    theartfullodger said:
    Who cares if it's common or not.  Cost of property to you will be price plus all fees.
    I think you've missed the point of my question.
    theartfullodger said:
    Have you read the WHOLE auction pack?
    How do you think I know that the seller is also demanding a payment??
    theartfullodger said:
    Ever bought a property at auction before?? (I have, but could afford risks...)
    No I haven't, I was outbid at the last one, and that one didn't have such a payment to the seller.

    Mr N.
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