When it comes to selling your home, it’s not simply a case of placing a ‘For Sale’ sign in your front yard and waiting for the offers to flood in. There are so many costs involved, the largest being the estate agent’s seller fees. Here are some additional things to consider:
1. Mortgage fees
Beware of mortgage exit fees and early repayment charges. Check your original documentation to find out if your mortgage is portable or if there are fees involved to switch.
2. Is your property appealing to a buyer?
Most buyers are seeking an easy to move into, clean and clear property. Clearing clutter and touching up the décor can make a world of difference to a tired room.
3. Estate agent fees
Estate agents can demand fees from 0.5% – 3% of your property’s sale price. You could lower your costs by selling privately or using a web-based property site.
4. Residential conveyancing process
Choosing the right solicitor is vital. It’s a good idea to find a suitable solicitor prior to placing your property on the market.
Fees for the residential conveyancing process vary. According to the Homeowners’ Alliance, legal fees alone are £500 – £1,500.
Additional costs include title deeds to the property (£25), searches for development plans (£250), transfer of ownership (£200-£300), money laundering checks (£8) and property fraud fees (£10).
Click here for further information about the conveyancing process.
5. Energy performance certificate
An EPC certificate can cost up to £150, plus VAT. It’s a requirement for anyone selling a property and you must acquire your EPC prior to placing your property on the market.
6. Removal costs
Removal costs can vary depending on your moving requirements and location. Costs for an average UK property valued at £226,000 are in the region of £700 plus VAT.
7. Capital Gain Tax
If you only own one property, CGT does not apply as you are entitled to private residence relief. Find out more about Capital Gains Tax obligations here: https://hoa.org.uk/advice/guides-for-homeowners/i-am-selling/capital-gains-tax-selling-home/.
Based on the average UK property price of £226,000, moving can cost between £1000 and £11,000. This is dependent upon whether you choose to sell privately, advertise online or use a high street estate agent.
It’s so easy to underestimate the costs of selling property, don’t forget to factor in final utility bills and mail redirection.