Does it cost more to sell at auction?

Under the right circumstances, selling at auction could help you realise a higher sale price than a private sale. If you have questions like, ‘how much does an auctioneer cost?’ , or ‘how much does it cost to auction a house?’ then you should be aware that there is no set fee or regulated amount auctioneers charge.

Do auction houses make charges for selling items in a sale?

The auctioneer is not the owner of the items it offers for sale, so how do they make any money? The answer is that they charge fees – commission – to the seller and to the buyer.

What are normal auction fees?

While major auction houses (like Sotheby’s) will even charge up to 25% on items, most smaller auction houses charge anywhere between 1%-15%. The amount of the buyer’s premium will normally be clearly stated in the auction house terms and conditions.

Why are auction fees so high?

So why are property auction fees so high? Property auctions offer a faster and more convenient way to sell compared with going through an estate agent. They also give you a much higher likelihood of success. It’s normal to expect to pay a higher price for better results, so a higher price is justified.

Why would you sell a house at auction?

Why Sell Property at Auction? “People who choose to sell at auction can set a reserve price, so they know the minimum amount they will receive before their property goes under the hammer. They will also be in a position to achieve a quick sale that is guaranteed not to fall through at any stage.

Is selling a house at auction a good idea?

If you’re looking for a speedy sale and certainty that a buyer won’t bail on you then auctions are a good way to go. As long as there is enough interest and you’ve set a realistic price your property should be sold by the end of the auction.

Do you pay tax on auction sales?

In the case of auctions and silent auctions, the full amount you receive is taxable, regardless of the item’s value. Sales tax generally applies regardless of whether the items you sell or purchase are new, used, donated or homemade. Sales tax is required to be added to the final auction bid price paid.