Ever wondered about the true cost of selling a house?
It’s time to break it down.
From mortgage fees to cleaning charges, plus the ones easily forgotten about, we’ve crunched the numbers.
Let’s take a closer look.
Fees when selling a house
There are a number of costs in the world of property, some larger than others. Here’s a handy checklist to give you an idea of just what’s involved:
- Mortgage costs
- Estate agent fees
- Energy performance certificate
- Conveyancing fees
- Removal costs
- Cleaning costs
- Incentives for buyers
- Final bills
- Other charges
- Cost of buying and selling
Some of these charges are expected, however others are easily forgotten. So, let’s go into further depth to help you get your head around exactly what’s involved.
Average cost of selling a house
There’s no exact figure for the price of selling your home, as this entirely depends on the individual situation. Properties are all sold at different prices, and these vary location to location also.
For example, you can expect to pay around 1-3% of the final sale price just to your estate agent.
However, sellers have less extra costs to deal with than buyers.
There are two potential costs to be aware of:
- Early repayment charges – usually 1-5% of the loan amount
- Mortgage exit fee (sometimes up to £350)
Not all lenders will have these fees, but it’s important to be aware of what you’ll be paying. Sometimes, the charges can be much higher than initially expected.
Estate agent fees
When selling your property, you may choose to use an estate agent. It is possible to sell privately, however there’s a lot more to it than you may think! From advertising to showings, it can make a difficult time even harder.
However, with estate agents come fees.
Choosing an online estate agent is often cheaper, as they sometimes have fixed fees. With this, you may also get a less personal service and fewer viewings. Fees usually come in between £500-£1500 (plus VAT).
Most of us stick with traditional high street estate agents. These tend to have a more extensive hot buyers’ lists and higher sell rates. But, this goes hand in hand with higher fees. You’re looking at around 1-3% of the final sale price of your home.
So, let’s say you sell your home for £250,000 – you could pay up to £7,500 on estate agent fees alone.
Energy performance certificate
An EPC measures the energy efficiency of your property by giving it a rating from A to G. It’s compulsory to get when selling – before placing your home on the market.
Again, everything has its price.
This time, you’re looking at up to £150 (although they can be a lot lower than this). Bear in mind that these are valid for 10 years.
If the energy performance certificate produces a low rating, it’s important to note that buyers may use this to haggle the asking price down. After all, we’re all looking to save money where we can!
Finding a solicitor or licensed conveyancer is a vital step in this process.
Unsurprisingly, this doesn’t come for free.
Charges vary; some will have flat rates while others take a percentage of the sale price of the property. So, you’re looking at somewhere between £500-1500 on average.
Need help finding a professional you can trust? Get conveyancing quotes for free below.
A removals company will charge you for their services, which is why many people choose to do it themselves.
However, this has its risks. For example, your possessions may not be covered by your home insurance provider when in transit.
Therefore, to avoid any potential loss, many movers use a professional service. For this, you’re looking at around £400-1500 (depending on the size of your property).
Want to know how much you’ll be charged? Get a removals quote online below.
Before you sell, ensure your home is looking its best. This includes cleaning, adding fresh coats of paint, or potentially buying some new furniture. A little spruce up can go a long way!
Keep costs down with some free tips:
- Mow the lawn
- Sort out the lighting
- Do a deep clean
- Keep the driveway spick and span
Home improvement can make your property more valuable and sellable, but this comes with a price tag. For example, adding an extension is a high upfront cost, but one that can end up paying off.
Expect anything from £0-£150 for minor cleaning costs, and up to £5,000 for major renovations.
Sometimes, buyers need some encouragement to buy your property. This is where incentives come in. These can vary (and aren’t compulsory). Examples include:
- Paying stamp duty (depends on property value – not always applied to first time buyers)
- Free legal fees (£500-1500)
- Paying removal fees (£400-1500)
The incentive you choose depends on the buyer themselves, so ensure you know who you’re selling to. It’s important not to feel pressured into offering incentives, but to understand that they can help seal the deal.
Of course, stamp duty doesn’t apply to sellers, but that’s not the same for all taxes.
If you only own one home, capital gains tax won’t apply to you. However, if you do, the sale of a property will be subject to it.
The charge will be based on the increases in value during the time of ownership.
When it comes to moving out, it’s time to settle any final bills with your energy and service providers.
Always keep a record of your bills to ensure you don’t get hit with any unexpectedly high costs.
When moving into your new place, switching energy providers can help you keep costs down.
Other unexpected costs
There are many costs that are easily forgotten!
Just one example is redirecting post, which usually comes in at £34. While this is one of the lower costs on this list, it isn’t one of the upfront costs when selling a house, so it’s one that can creep up on you.
During this process, while it’s tempting to cut costs where you can, be savvy about it. Sometimes, cutting corners can end up costing you more in the long run! So, focus on paying a fair fee for a good sale price. This applies to everything from estate agents to solicitors.
How much does it cost to sell a house and buy?
How much to sell a house when buying?
Many sellers are also buying at the same time. While some rent beforehand to avoid doing both at once, many don’t.
Therefore, naturally, you have to straddle the cost of buying simultaneously. Some of the charges to consider include:
- Stamp duty land tax
- Getting a property survey
- Removals, solicitors and mortgage related costs
- Getting a property report to see if the area you’re moving to is right for you
These are just a few examples, the cost of buying a house varies largely depending on where you’re moving to and what you’re looking to buy.
For example, a family house in the countryside might be cheaper than a flat in a city like London!
Some advice for selling and buying
Remember to look for buyers who are organised, trying to avoid time-wasters at all costs. These can be difficult to spot, but tell-tale signs include not having everything ready to go, such as a mortgage in principle.
First time buyers will be chain free, so this can help you avoid the potential risks that can come hand in hand with those also selling.
To reduce the risk of gazundering, consider using a property service like Gazeal. This will speed up the time it takes to complete by up to 50%, making the sale much more likely.
Need more advice?
We’re here to help sellers navigate the property minefield from start to finish, providing guidance every step of the way.
If you need further support, check out our selling advice for everything you need to know.