We have several choices to offer clients who are thinking about a sale by auction. The choice will very much depend on the circumstances behind the reason for selling through this method. Auction House Hull & East Yorkshire are based in Driffield and use the traditional method of sale by auction, known as 'Unconditional Auctions'. This means that on the fall of the auctioneers' hammer the property is sold to the highest bidder and they pay a deposit there and then. This is a binding contract and usually, the balance of the purchase price is paid 28 days later.
You pay an upfront lot entry fee of £360 (£300 + VAT) for residential property and £480 (£400 + VAT) for commercial property. This buys you your slot in the auction and entry into the catalogue. If you are unsuccessful on the first attempt then your fee also covers the cost of entry into a second auction (terms apply). If your property requires an Energy Performance Certificate (EPC) these are also an up front charge and cost £90 (£75 + VAT) for residential property. Commercial property will be quoted separately at the time of instruction.
We are also able to secure local searches on a No Sale - No Fee basis which reduces the risk of extra costs in the event of the property not selling.
When the property is sold (contacts are exchanged) you are then liable to pay a commission of 2.4% of the sale price (2% + VAT) or the minimum fee of £1,800 (£1,500 + VAT). We deduct our fee from the deposit money we have collected at the auction and held in our clients account until the funds have cleared. We then forward the balance to your solicitors in time for completion.
If your circumstances are such that you are not able or would prefer not to pay the entry fee and EPC charge upfront, then we are able to defer the payment until after the property is sold and deduct the charge from the deposit money along with our commission charge.
In these circumstances, the lot entry fee is increased slightly to £480 (£400 + VAT) and the EPC charge will be £114 (£95 + VAT)
The commission charges are the same as the standard fee.
In some circumstances we are prepared to offer a No Sale - No Charge Auction Fee. This will be applicable if you wish to avoid the risk of paying an entry fee and EPC charge if the property doesn't sell. We only accept entries on this basis if you are prepared to accept our recommendation on the level of the guide price and reserve.
The commission for this fee is increased to 3% of the sale price (2.5% + VAT) (Subject to a minimum fee of £2,400 inc VAT).
We are aware that some of our competitors who are conducting Conditional Auctions sell their services on what seems on the surface as an attractive fee structure where they don't charge the seller anything. They can do this because they charge the buyer what is called a 'Buyers Premium'. This fee is usually 5% of the purchase price + VAT (subject to a minimum fee of £5,000 + VAT). Anyone taking up this option should consider that the buyer who is faced with this large extra cost will probably pay 5% less for the house than if they were buying without a premium.
To remain competitive, we are offering a similar fee structure to those that find this fee structure attractive. However our 0% commission fee only charges the buyer a 3.6% premium inc. VAT (subject to a minimum fee of £3,600 inc VAT).
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