Buying fees explained
When buying at auction, it's important you're mindful of the total amount payable to ensure you're comfortable before placing your bid.
Non-Refundable Reservation Fee
You can find out about any applicable Fees and Charges for the property in the Fees & Charges Explained section of the property page.
Most of our auction properties require payment of a non-refundable Reservation Fee. This fee is a payment made by the buyer to reserve the property exclusively to them for the duration of the reservation period. It is later used to cover the auction fees for the seller, paying the Listing Agent and Auctioneer who work in partnership to provide the auction.
This fee is paid in addition to the purchase price and is calculated as a percentage of the purchase price. It is subject to a minimum payment, which is shown on the property’s profile page. This fee is considered within Stamp Duty liability
Reservation Fee (percentage)
The percentage payable will change depending on the property, so be sure to check the Fees & Charges section on your Buyer Information Pack – this is found on the property’s profile page.
If a Reservation Fee does not apply, the buyer will need to make a non-refundable Reservation Deposit instead.
Reservation Deposit
A Reservation Deposit applies to properties that do not charge a Reservation Fee. These properties will be clearly marked in red, beneath the starting price.
This non-refundable deposit secures the property for the buyer. It's calculated as a percentage of the purchase price and will form part of the final purchase price on completion.
Like with the Reservation Fee, the percentage depends on the property.
Buyer Information Pack fee
The iamsold Buyer Information Pack comes with a payable fee from the buyer. This fee is £300 including VAT, and is additional to the Reservation Fee or Reservation Deposit.
The above fees must be factored into your total spend before you place your bid.
Other useful information about auction
Buying at auction FAQs
Whilst the Traditional Auction is usually not suitable for those buying with a mortgage, the Modern Method of Auction allows a longer period of time to exchange and complete to enable buyers requiring finance, the time to secure their mortgage. As mortgages are subject to lending criteria, affordability and survey and it is recommended that you discuss your requirements with your lender/financial advisor prior to bidding. Ideally, having a mortgage valuation conducted prior to bidding makes the process a lot quicker and gives you a guide as to your affordability before placing your bids.
A non-refundable Reservation Fee is required from the winning bidder as a way of securing a property to them for the reservation period. It also provides the seller with added reassurance that the sale is likely to proceed smoothly as it reduces the chance of a fall-through. The Reservation Fee also provides the buyer with the same reassurance, as the seller is bound by the same terms of the auction, which means they cannot accept an offer from another party during the reservation period.
Current HMRC policy is that the chargeable consideration (monies or monies worth) for a land or property transaction is what has been given (either directly or indirectly) in order to acquire the subject matter (i.e. property) of the transaction, by the purchaser or a person connected with them. This includes fees which have to be paid in order to acquire the property. This means that whatever the buyer pays, it will form part of the purchase price for the property and it will be included in their liability for Stamp Duty. In all circumstances we would recommend discussing this with your chosen Solicitors prior to committing to a bid.
The Reservation Fee is held by iamsold to reserve the property to the buyer and show their commitment to the purchase. It is later used to cover the auction fees for the seller, paying the Listing Agent and Auctioneer who work in partnership to provide the auction