The cost of selling your house
by Rizwan Osman on 6th July 2020
It may seem counterintuitive, but selling a house is an expensive business. It is not simply a case of naming your price and taking the cash.
However, with some advance planning and preparation, you can make sure you have set aside sufficient money to fund the cost of selling your property.
Here is a lowdown of the main financial outlays you can expect in incur so you can avoid any nasty surprises.
Estate agent fees
Although it is possible to sell your house privately, most people choose to use an estate agent. Traditional high street agents typically charge a percentage of the selling price, plus VAT. It is a good idea to compare at least three local agents before making a decision. Typically, the fee is a percentage of the selling price, plus VAT. You can estimate this based on the guide price of your property.
Mortgage lender fees
Do you have an existing mortgage? If yes, you can usually transfer the existing mortgage to a new property. This is relatively simple if you plan to move to a similarly priced or cheaper property but if you need to borrow more money porting your mortgage will be more difficult and costly.
Moving house is a good time to see if you can benefit from re-mortgaging. If you have come to the end of your existing mortgage deal you may find you can secure a lower interest rate, either from your existing lender or a new one, and save yourself some money. There are costs associated with re-mortgaging so you will need to weigh these up against your potential savings.
It is worth seeking professional advice to ensure you get the best deal and make the right decision.
You will need to hire a solicitor or licensed conveyancer to deal with the legal aspects of selling your home. Some will charge you a fee based on a percentage of the value of your property, while others will charge a flat fee. You can expect to pay anywhere between £700 and £1,200 for sales conveyancing.
If you are buying another property at the same time, it is advisable to employ the same conveyancer to manage the legal aspects of both buying and selling.
Removal company fees
Another cost to include in your budget is removal fees. If you live in a small property and have few possessions you may be able to simply hire a van and do this yourself. But if you have an entire house of furniture and valuable items to move, it makes sense to leave the task to a professional, fully-insured removal company.
Removal fees can vary hugely depending on the service and how much you have to move. Fees can range from £800 to more than £2,000. Make sure you get quotes from several companies before choosing one, ask family and friends for recommendations and use review sites.
Energy Performance Certificate (EPC)
The property seller must provide prospective buyers with an EPC certificate so that buyers are aware of the property’s energy rating and performance. You will need to purchase a new EPC certificate if the current one is out of date (an EPC is valid for 10 years). The cost of an EPC certificate is between £60 – £120.
Capital Gains Tax (CGT)
Do you live in the property you are selling, or is it a holiday home or buy-to-let property? If it is classed as a second property, you may have to pay CGT if you sell the property for more than you paid for it.
There will be other costs to factor in when selling a property, but the above are the main ones to consider. If you are buying another property at the same time, then you will also need to cover the cost of a home survey, additional conveyancing fees, any renovation or refurbishment work, and of course stamp duty.
If you’re planning to sell a property in Tooting, Clapham or the surrounding areas, we are well-placed to help you with a smooth sale. Contact our sales team today for a sales property valuation.