The cost of selling a house

18 July, 2022

What is the cost when selling a house?

 The invisible cost of selling a house.

So you have decided to sell your house!  There is certainly plenty for you to think about having made such a big decision and one of the most important aspects to consider is how much it will cost you to sell your house.

As the cost involved is not negligible and will certainly affect your spending power when it comes to how much you can afford for your next property, it is well worth taking the time to consider all the possible costs involved.

 

Preparing to sell your house

 

As you get ready to put your house on the market, you will incur the following costs:

● EPC – Energy Performance Certificates

These certificates are required by property agents and are valid for ten years. The certificate shows potential buyers the energy

efficiency rating of your property and is a legal requirement.

If you have a valid certificate, that is great, but if not, you will have to organise to have one completed by an accredited energy assessor. Prices do vary from one area to another but according to Really Moving, should cost in the price range of £35-£120.

 

If you are selling your property in Scotland, the EPC Certificate is incorporated in the Home Report which as RICS explains -

 The RICS Home Survey – Level 2 (survey and valuation) service includes:
• a physical inspection of the property
• a report based on the inspection and
• a valuation, which is part of the report.

 

Again, the cost of a home survey does vary between £400 - £1,425 depending on the size and value of the property, its location and the type of home survey required.

 

● Estate Agent fees

There are two main types of estate agents to consider when selling property. The first is commission-based and the second sells properties for a fixed fee.

The average charge made by a commission-based agent is 1.5% plus VAT (sole agency), but the charge can be up to 3%. This rate can be negotiated if you have a larger property. The average charge made by a fixed fee agent is just under £1,000. 

It is well worth comparing a few high street estate agents – including independents and chains and both high street agents and online estate agents.

 

Many people prefer to sell their property to a cash buyer as they charge much less and the sale is really quick. Some companies that buy houses for cash do not charge the owner any selling fees, but this is usually reflected in the value of their cash offer.

 

Selling by auction is another option open to property owners and the cost is usually about 2.5% of the attained price - but there can be other charges such as a listing fee or brochure cost.

 

● The cost of essential repairs 

Preparing your house to go on the market usually involves some necessary household repairs and re-painting to ensure that walls are clean and in a white or neutral tone that will appeal to everyone.

Ensuring your house has kerb appeal by getting the exterior paintwork and front garden into shape will cost money but will be money well spent.

 

When you sell your house

 

When you successfully find a buyer for your property, there will be more charges to be met and these begin as soon as the sale has been agreed upon.

 

● Conveyancing fees /legal fees

 The legal transfer of ownership from you to the new owner must be completed by a solicitor or licensed conveyancer. The cost is less if you are selling a property rather than buying one and costs do differ greatly so it is definitely worth shopping around. The cost of conveyancing for an average-sized property is £600 plus VAT.

 

● Paying off your outstanding mortgage 

If you have an outstanding mortgage, you will be charged an administration fee (mortgage exit fee) when you pay it off and exit the mortgage. Surprisingly, even if you are paying off your mortgage early, you will incur an early repayment charge which is charged to offset some of the interest money lost by the mortgage lender. The amount charged does vary from one mortgage provider to another, but the average is £100- £300. 

 

● Removal fees 

While some people do try to move by hiring a van and grabbing some friends (remember to take out extra kit insurance), it is far easier

to book an established local removal company. The removal company will pack, move and unpack your furniture and belongings.

The costs vary tremendously, depending on accessibility to the property you are leaving and your new home and the value of the items to be moved.

Prices start at about £400 for the contents of a one-bedroomed flat. It is possible to reduce the bill by agreeing to complete most of the packing yourself, but it is important to remember that items not packed by removal staff, will not be covered by the company’s insurance.

 

● Capital Gains Tax

Although there will be no Capital Gains Tax to pay if you are selling your primary residence if you are selling a second

home or buy-to-let property, you may be liable to pay capital gains tax on the amount that the property has increased in value since you bought it - but there are allowances that you could claim when the calculations are being made.

Not surprisingly, the different costs soon add up, so it is well worth calculating how much it will cost to sell your property. Even the seller of a one-bedroom flat is likely to not have too much change from £5,000…