Why There's No Standard Answer
Anyone asking 'who pays the fees?' at a property auction is asking the wrong question. The real question is how the auctioneer has structured the deal for that specific lot. There are no industry-wide standards, only a collection of competing business models designed to extract payment from either the buyer, the seller, or both.
The market is driven by a fundamental split. In a traditional auction, the seller typically pays a sales commission, and the buyer may pay a smaller administration fee or premium. This is the model that has existed for decades.
However, the rise of online platforms and the 'Modern Method of Auction' (MMoA) has introduced a disruptive alternative: the 0% seller commission model. Here, the seller pays nothing. The entire cost of the sale, including the introducing estate agent's commission, is bundled into a single large, non-refundable 'reservation fee' paid by the buyer. Understanding which of these two worlds you are operating in is the first step to not overpaying.
Buyer's Fees: The Most Common Costs
The majority of UK property auctions, regardless of method, will charge the buyer a fee. This is an additional cost payable on top of the winning bid and does not form part of the property's purchase price. The name changes-'buyer's premium', 'administration charge', 'reservation fee'-but the impact on your wallet is the same.
Auctioneer examples are illustrative, not gospel, as terms change constantly. Eddisons, for instance, acquired the live-streamed auction business of SDL Property Auctions in 2023. While the SDL brand still operates independently via estate agency partnerships (often using the Modern Method), the Eddisons fee structure is now dominant in their national auctions. This can range from a 1.2% buyer's fee to a much larger 4.8% (or more) reservation fee, depending on the lot and the method of sale. The higher fee is often a sign that it covers the seller's agent costs.
Other major players like Allsop and Savills operate on a lot-by-lot basis. There is no single published rate. The fee is what is stated in the Special Conditions of Sale for that property. Clive Emson often uses a fixed administration fee which varies with the property's value, but again, the exact amount is only found in the legal documentation for the specific lot. Never assume one auctioneer's fee structure applies to another, or even to different lots in the same catalogue.
What Sellers Pay
For sellers, the choice of auction model has profound financial consequences. In a traditional auction, the standard model involves a sales commission, but the 'typical 2%' figure is dangerously outdated. This is a negotiable fee, now ranging from 1.5% to 5% + VAT. While major national firms might offer 1.5%-2.5% for high-value lots, rates of 4-5% are not uncommon, especially with regional auctioneers, on lower-value properties, or where a full-service package is provided. This fee is only payable on a successful sale.
In addition to the commission, sellers are almost always liable for an upfront entry or catalogue fee (typically £300-£500 + VAT) and the cost of their solicitor preparing the auction legal pack (anywhere from £400-£1000+). These are sunk costs, payable whether the property sells or not.
However, the major shift in the market is the '0% commission' or 'seller-free' model, popularised by Modern Method platforms. In this arrangement, the seller pays no sales commission at all. The auctioneer and introducing estate agent recover their entire fee from the buyer through a substantial, non-refundable reservation fee. This is an attractive headline for sellers, but it simply shifts the entire financial burden of the transaction onto the winning bidder.
The 'Zero Buyer Fee' Illusion: Reservation Fees Explained
Be cynical of any platform marketing itself with 'no buyer's premium' or '0% buyer fees'. This is almost always a marketing sleight of hand, not a genuine saving. These platforms, particularly those using the Modern Method of Auction, have simply replaced one term with another.
Instead of a 'buyer's premium', the successful bidder pays a 'reservation fee'. From a buyer's financial perspective, this is a distinction without a difference. It is a substantial, additional cost paid directly to the auctioneer on top of the winning bid. It is not a deposit and does not contribute to the purchase price.
Do not be misled. A reservation fee of 4.8% is functionally identical to a buyer's premium of 4.8%. The critical feature of these fees in the Modern Method is that they are non-refundable. If you win the auction but later fail to complete the purchase (for any reason), you do not get this money back. Always calculate this fee as part of your total outlay, just as you would any other buyer's premium.
Modern Method vs Traditional: How Fees Differ
The method of sale dictates the entire fee and payment structure, and buyers must be absolutely clear on which they are dealing with before raising a hand or clicking a button.
In a traditional (unconditional) auction, the process is swift. On the fall of the hammer, you pay a 10% deposit, which forms the first part of the purchase price. In addition, you pay any specified buyer's premium or admin fee as a separate cost. Completion is legally binding and usually set for 28 days later.
In the Modern Method of Auction (MMoA), the process is conditional. On winning, you do not pay a 10% deposit. Instead, you pay a non-refundable reservation fee (e.g., 4.8% of the purchase price, subject to a minimum of £6,000). This is purely a fee to the auctioneer and agent; it is not part of the purchase price. You are then granted a period of around 56 days to arrange finance and exchange and complete. This means a £200,000 property could cost you £200,000 plus a £1,500 premium in a traditional auction, or £200,000 plus a £9,600 non-refundable reservation fee in a modern auction. The difference is stark.
Special Conditions: The Real Cost of Winning
Forget 'rules of thumb'. Calculating your total cost based on a vague percentage above the hammer price is financially reckless. The only professional way to budget is to create a specific cost breakdown for each individual lot.
The 10% deposit is not an 'extra cost'; it is part of the purchase price you are paying anyway. Lumping it into your cost-overrun calculation is a fundamental error that will lead to catastrophic miscalculations. Your budget spreadsheet must itemise these costs separately: 1) Hammer Price; 2) The actual buyer's cost (be it a Premium, Admin Charge, or Reservation Fee, plus any VAT); 3) Stamp Duty Land Tax (SDLT), calculated for your specific circumstances and the property price; 4) Your solicitor's fees; and 5) All additional costs specified in the legal pack.
These additional costs are where nasty surprises hide. Look for clauses in the Special Conditions requiring you to pay a contribution to the seller's legal costs (£500-£1,500 is common) or to reimburse the seller for their search pack (£300-£500). The 2022 court ruling in SPS Groundworks v Mahil established that such onerous terms must be fairly and reasonably brought to a bidder's attention, not just buried in the small print. As a result, most auctioneers now flag these charges in the main property description, but the definitive source remains the legal pack. Read it.
How to Check Before You Bid
Trust nothing but the legal documents. Marketing text is designed to sell, but the auction contract is what legally binds you. Before you even consider bidding, you must perform your own financial due diligence on the costs.
First, find the 'Auction Deposit and Fees' or similar section on the main property listing. This is where the auctioneer, post-Mahil ruling, is likely to declare the buyer's premium or reservation fee structure. Note the percentage and, critically, any minimum fee.
Second, download and instruct your solicitor to review the entire legal pack. Your primary focus should be the 'Special Conditions of Sale'. This is where you will find any clauses obligating you to pay the seller's legal or search costs. These are non-negotiable once the hammer falls.
Finally, build your cost spreadsheet as previously detailed. Input the maximum price you are willing to bid as the 'hammer price' and add every single additional fee on top. This final number is your true maximum commitment. If you are unclear on any point, ask the auctioneer's legal department for clarification in writing. Assumptions are the enemy of profitable auction buying.