Moving home is not only one of the most stressful phases of life, but it can also be extremely costly. Many people are unaware of the full costs involved with selling a property and this can often leave them caught short.
However, the majority of people will move at least once during their lifetime for a number of different reasons. So, in this blog, we’ll take a look at some of the most common costs associated with selling a property, from basic costs to potential extra costs.
Mortgage fees and remortgaging
Cost: £50-£300 mortgage exit fee, 1-5% early repayment charge
When selling a property that is still within a mortgage, there are two charges to be aware of:
- Early repayment charge
- Exit fee
Most mortgages are portable, meaning that you can transfer them from the property you are moving from and continue the agreement on the property you’re buying.
However, it’s a good opportunity to see if you can save money by remortgaging which will often involve early repayment charges on your existing loan, plus an arrangement fee and product fee for your new deal.
If you’re paying off your mortgage and the final balance is cleared, some lenders will charge an exit fee.
Your mortgage advisor will be able to guide you in the best direction and inform you of all your options.
Estate agent fees
Cost: 1% – 2.5% fee or £600 – £2000 fixed fee inc VAT
Online agents offer a relatively low fixed fee for selling a home, however, around 90% of all homes sold in the UK are still via a traditional high street estate agent, most of which charge a percentage of the final selling price.
Additionally, most agents’ fee is on commission on a ‘no sale, no fee’ basis. So, if the agent doesn’t sell your home, you don’t have to pay.
While you can save money by selling your home yourself, an estate agents’ knowledge, experience and access to local buyers will increase your chances of a sale and potentially speed up the process.
Additionally, while getting the most money out of your sale is important, the cost of the fees shouldn’t be the deciding factor. It’s important to pick an agent with experience in the area and a strong track record of successful sales. The best agents often charge slightly more than their competitors, and it’s worth picking one that provides a quality service.
At Peter Morgan, we offer a fixed fee starting at £795 or a fee of up to 1.5% based on the final selling price, as well as a fixed full-service fee £1950.
To enquire about our fees in more detail, get in touch here or call us on 03300 563555.
Energy performance certificates (EPCs)
Cost: £35-£150 + VAT
Anyone that sells their home must provide an energy performance certificate for their property and it must be ordered before the property is placed on the market.
The EPC gives vital information about the energy efficiency of a property from A to G (A being the most efficient, G the least efficient). It helps the buyer assess the day-to-day running costs of the home before buying the property.
EPCs are carried out by accredited domestic energy assessors and this can either be booked by yourself or through your estate agent.
They usually cost more through an estate agent, however, they take away the hassle by sourcing and chasing them up on your behalf.
An EPC is valid for 10 years and can be accessed at any time via the EPC Register website.
Cost: £500-£1500 inc VAT
When selling your home, you’ll need a qualified solicitor or conveyancer to handle the legal aspects on behalf of you. Although you’re not legally obliged to use one, it is highly recommended to ensure the process runs as smooth as possible and you don’t jeopardise the sale.
Depending on the level of service they provide, the cost can vary, but £500 tends to be the lowest you can expect to pay. Some will charge a flat fee while others will charge a percentage of the property value.
Solicitor fees for selling a home tend to be less than the fees for buying a home. If you’re selling and also buying a property, the same solicitor might be able to deal with both transactions, in which case you might be able to negotiate a better fee.
Cost: £250-£4000 +VAT
If you’re moving from a small property without many belongings, you may be able to move without the help of a removal firm. But for most movers, this isn’t the case and help is needed.
The cost depends on the size of your property, the amount of items you need to relocate and the level of service you require, e.g. boxing and un-boxing.
It’s important to get a few quotes from different companies first and always go with a professional firm that will look after your belongings.
Even if you opt to do it yourself, you’ll need to factor in the cost of hiring a van, fuel and goods in transit insurance (optional).
Preparing your property for sale
Depending on the condition of your property, you may have to spend some money in order to attract potential buyers to view it and ultimately buy it.
As a basic requirement, you should make sure your home is clean and presentable, fix any necessary repairs and redecorate where needed (scuffed walls etc).
Preparing your property for a sale is optional, however, if you’re serious about selling, it will increase your chances of a successful sale and help sell your home fast.
However, be mindful of overspending on unnecessary things that won’t benefit the sale.
Check out this video for some tips to help add value to your home
The cost of your new home
Many people move in order to release equity from their current property. If you’re buying another property to move into, it’s important to weigh up the costs associated with moving and the money you plan to make out of the sale.
Understanding all of the costs involved with selling your home before you put it on the market will ensure you get the best return from your sale.
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