Selling a property can seem like a daunting task, considering it can be one of the most expensive decisions you might have to make.
There a many things you will need to take into to consideration, such as agent fees, auction fees, mortgage fees and many more things that can quickly add up. Selling your home isn’t as simple as just agreeing on a price and pocketing the final amount offered.
However, if you do your research, have the right information and understand the costs involved it doesn’t have to be so stressful. Planning ahead will help you to prepare and budget for your sale accordingly.
In this article, we’ll take you through the significant financial outlays you can expect to incur when it comes to selling your property. Besides this we’ll also provide a few tips and ideas on how you can reduce your costs.
Estate Agency Fees
When it comes to selling a residential property, the estate agency fee tends to be the biggest cost incurred by a home seller. Typically, estate agents in high street areas charge between 1% and 3% commission, including the VAT on the home sale price.
Here in the UK, reports reveal that the average sales price of a house is around £219,000. Estate agents typically charge around 2% on a home price which is around £4,380 and above in costs. If your home is worth more or your home sale price is higher you might find an increase in the commission fee charged by your agent.
When it comes to selling a home you would usually use a traditional high street estate agent. Although many online estate agents now offer dedicated local agents, the ability to just walk into a high street office is reassuring to many.
High street estate agents will often have greater overheads than their online counterparts. This includes rent for their storefront, business rates, staff, etc. These extra costs mean that you end up paying more for their services, in some cases a lot more. The usual commission for a high street estate agent can vary between 0.75% – 3% of the final selling price (often + VAT).
They’ll also be in charge of getting your property listed on their home sales portal and help arrange and host the inspections on your behalf.
Online estate agents offer their services similar to you doing it yourself, with you listing your home for sale on their website. This typically requires that you make an upfront payment for a specific package which includes a listing of the property on the site. However you’ll be organising the viewings and inspection of the property. Apart from that, some do offer advanced services similar to that of traditional estate agents to help with the management and other tasks involved in arranging viewings.
When using an online service make sure you do your research, take your time to find the best service that matches your needs. As a good alternative, when using WeBuyProperty.com you have no agents to deal with, no boards, no viewings, simply a quick cash offer within 24 hours, typically at 90% of the market value.
So now your aware of the agent’s fees, you still have to take into account the removal costs. Your removal cost depends on the amount of furniture and other items inside the property that you’ll have to remove. You should factor this into your budget before listing your home for sale. Of course, moving fewer possessions will significantly help reduce your removal costs. If your able to plan well ahead you can start clearing the property in small stages. Get family and friends to help or rent a van which can be done by yourself.
Above all, if using a removal firm you should ensure that you get your quote in advance and don’t leave things till the last minute.
The buyer covers the costs relating to search, survey, and stamp duty. However, the services of a solicitor or licensed conveyancer cannot be left out when it comes to selling your house. Their primary role is to act on your behalf, and they handle all the legal documents related to selling a property. Apart from that, they help clarify what’s included and what’s not included in the home sale agreement.
Depending on the complexity of the sales, local, and size of the property, the pricing of hiring a solicitor ranges between £500 and £1,500. However, there are parts of the transaction you can go without, but that always comes with a risk. If you want to get the specific price of hiring a solicitor, you should consider comparing quotes or probably use a comparison website to get the best deal.
Energy Performance Certificate (EPC) Costs
Usually, an EPC is a legal requirement when selling a property, and it lasts for about 10 years. So, make sure you check the validity of your current one. If necessary, you can arrange for a new certificate. The cost of an energy performance certificate usually varies between £60 and £120.
An EPC basically provides information about the energy efficiency of the home. It’s a certificate that provides home buyers with insights regarding the possible energy bills and the areas that need improvements.
The cost doesn’t end here. Other things you may need to consider can include, mortgage costs, capital gains tax, property tax, and more.
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