09 October 2020
Costs of selling your home
Before you can 100% make the decision to sell your house, first things first is getting your finances are in order. Just like when you purchase a home, there are extra costs involved that can easily be forgotten, which is why it’s so important to make sure you can afford it before taking the plunge into putting your home on the market.
We’ve put together a core list of the additional costs that you may not be aware of when selling your home.
Estate agent fees
When selling your home, you’ll most likely appoint an estate agent to help sell your home. They will take care of marketing your home and finding a suitable buyer. Prices can vary between 0.75% and 3.0% of the selling price, plus VAT.
Online estate agents can be cheaper than high street estate agents, however you do usually have to pay the cost upfront to get the cheapest packages. If you’re confident your home will sell and you’d like to have an active role in the selling process, this would be a good option.
The conveyancing fee is money you pay to the solicitor or licensed conveyancer for the work they do whilst you’re selling your home.
Charges do vary and each solicitor will charge a different amount based on the works done. Usually the price is based on a percentage of the property price you are purchasing.
Normally you'll receive an upfront quote from the solicitor so you'll know how much you're going to be charged beforehand.
If you haven’t paid off your mortgage on the home you currently live in, you may be subject to paying some early redemption charges.
The amount you pay will differ according to your remaining balance, so be sure to check this before moving forward.
Also, you may have to pay a ‘mortgage exit fee’, which can sometimes be up to £350. Although again, it’s important to check with your mortgage lender which fees you’re going to be subject to. Not all lenders will have these fees but it’s good to know in advance what you may have to pay later down the line.
Energy performance certificate
By law, you’re required to have an energy performance certificate for your property before you sell it.
Often referred to as an ‘EPC’, this is a certificate that grades your home on it’s energy efficiency. Grades start at A, being the highest down to G, being the lowest.
These can usually be purchased via your estate agent or using an independent vendor on the Government EPC register.
When it comes to moving onto your next home, you’ll most likely pay for a removals company to help you move your belongings from your current home to your next one. Costs can fluctuate, but on average they’re between £300 and £900.
It’s a good idea to call up a few removals companies and ask for quotes. Some will be better than others and it’s good to save costs where possible.
Before you sell your home, you'll want it looking it's best so it's more likely to sell to a new buyer. Even the smallest of home improvements can help make your home more valueable.
Whether it's adding a fresh lick of paint to the walls or general cleaning around the house, keep in mind you'll need to spare some cash to pay for this.
It's also worth baring in mind that you'll need a clean, fresh looking property before taking photos to advertise online. You may want to start the cleaning process in advance of putting your home on the market or approaching an estate agent so that your home is ready to start the marketing process straight away.