Your home is usually the most expensive thing you own, so it stands to reason that buying and selling property involves significant sums of money. This means that when you sell your home, you’ll want to keep the costs down as much as possible.
So, how do you do it? The first thing is to know exactly what costs are involved and how much they will be. The second is to look at ways you can reduce them. Here we’ll run through what the main costs are and provide some tips on how to save money when selling your home.
How much does it cost to sell a house?
There are a number of key costs to consider when you sell property. Whether you manage to find or negotiate a better price for services, or strip them out altogether, will determine the final cost. These costs include:
Estate agent fees
The fee you have to pay an estate agent for selling your home is usually the biggest cost you’ll face. Estate agent costs typically range from around 1% to 3% in commission on the final sale price. The average UK house price is around £300,000, so taking 2% as an estate agent fee, this results in a charge of £6,000. It’s a good idea to get a range of valuations from different estate agents, this will give you a good idea of what commission rates are available and what estate agents offer for those rates. Getting several valuations is also advised to ensure you’re asking a realistic asking price for your house, not getting shortchanged by asking too little or putting off buyers with a too big price tag.
Naturally, the more your house sells for, the higher the fee will be. These fees can feel like a lot but remember that professional estate agents are more likely to achieve the best possible selling price for your property, so could well pay for themselves.
It could be possible to avoid this cost entirely by using the Wain Homes Movemaker Scheme. If your new home qualifies for Movemaker, we will allow you to reserve your new build home and help you to sell your old one and as part of the scheme, we’ll even pay your estate agent fees.
If you’re selling your home to buy another, part exchange is a great way to eliminate one of the biggest costs you’ll face. If your home qualifies, you won’t have to pay any estate agent fees when you part exchange your existing property with Wain Homes.
Not only that, you also avoid the stress associated with finding a buyer, dealing with viewings and being part of a chain that could go wrong at any point through no fault of your own.
Legal fees
You’ll need a conveyancing solicitor to take care of the legal side of the transaction when you sell your existing home and buy a new one. Among other things, your solicitor will liaise with your buyer’s legal team, fill out the necessary legal documents and transfer funds once the sale completes. Solicitor fees are typically between £500 and £1,500, although this can vary, while the cost will come straight out of the above-mentioned funds. To find out more about the legal fees involved in the home moving process, read our financial and legal home moving guide.
Removal fees
If you’re asking ‘how much does it cost to move house?’, one of the things you need to take into account is your removal costs.
This can also vary greatly, depending on how much help you receive or how much you’re prepared to do yourself. You may find yourself paying a removal team over £1,000 to move your possessions, although this can be significantly lower. It can also be far higher if you go for the top level of service where the removal team essentially sets up your new house for you, either exactly as it was in your previous home or per your instructions. This can be several thousand pounds. Of course you can save money on removal fees if you’re prepared to do a lot of the work yourself but this can pose serious challenges if you need to move large pieces of furniture and the risks involved in doing this need to be assessed very carefully. Getting help from friends and family is another great way to save money.
Rental costs
If you’re moving straight into a new home on the day you complete your sale, this isn’t something you need to worry about. On the other hand, if you’re selling your property without a new place lined up, you may have to pay to live somewhere else.
This could be a short-term rental property, a B&B or an Airbnb for example. Some people are able to stay with family or friends for free, but if not, you could be looking at hundreds of pounds a month – or indeed much more depending on what you rent. Rents, like house purchase prices, are driven by property location, property size and property quality.
Energy Performance Certificate
Whenever a property is sold, it’s a legal requirement to order an Energy Performance Certificate (EPC). This must be arranged before you market your home, so potential buyers can see the energy rating your property has. The certificate provides a rating from A to G based on typical energy usage and costs, while also recommending ways to save energy. An EPC usually costs between £35 and £120 and is valid for 10 years.
Mortgage fees
If you have a mortgage on your property, it’s likely you’ll have some fees to pay when you sell up. Mortgage exit fees are typically between £50 and £300, while you may also have to settle an early mortgage repayment charge. This is generally between 1% and 5% of the total loan amount. For example, on a mortgage balance of £200,000 on a five year fixed deal and exited after two years, you would owe £6,000 if your exit fee were 3%.
Redirecting your mail
Once you leave your house, you’ll want to keep receiving the mail that’s sent to you there. To do so, use Royal Mail’s redirection service, which starts from around £30. It’s not a major cost, but it’s one that could save you plenty of hassle.
If you’re looking to buy a new home, have any questions about the financial and legal part of the home buying process or have any other queries, get in touch with our team today.