The Hidden Costs of Selling your House
The hidden fees when selling a house are typically the estate agency fees, legal fees, obtaining an Energy Performance Certificate, and hiring a removals company are essential costs in the process.
How much does it cost to sell a house?
There are a handful of expenses you naturally cannot avoid when selling your home. Often the largest or most common form of expenditure is the estate agency fees. How legal fees, and the cost of an energy performance certificate, removals, and stamp duty (currently on property above £500,000) all adds up and simply be avoided.
To help you save money during these testing times, this piece will break down some of the major financial areas of buying a house.
The commission varies between different high street estate agents. If you are selling your home, you could pay anything from 0.75% and 3.0%+VAT on the price your house sells for. However, fees can vary depending on the type of contract you have with an agency too. On lower-value properties, they may charge a fixed fee, whereas there can be room for negotiation if you have a high-value home or are happy to agree to a sole agency contract.
When it comes to the legalities of selling your home, you will need to hire a solicitor or conveyancer. This individual will handle the entire legal and financial process and typically charge a one-off fee or a percentage cut of the value of your home. You could find yourself charged more if you are selling a leasehold property. Other prices under this umbrella may include:
- Copy of title deeds
- Money-laundering checks
- Bank transfer fee
Early Repayment Charge
If you have a mortgage on your property, you may also be subject to an early repayment charge. This is a fee that is charged by your lender if you choose to pay off your mortgage before the end of the term. The amount of the early repayment charge will depend on the terms of your mortgage, but it can be substantial.
It is the law to provide any prospective buyers with an Energy Performance Certificate (EPC). Once a report has been commissioned, the EPC results should be contained in all marketing material for the property. The cost of an EPC will depend on the type of property you have and the number of bedrooms.
Stamp Duty Land Tax is a tax that is paid by people buying property across England and Northern Ireland. The single lump tax applies to anyone purchasing a property or piece of land costing more than £125,000 at purchase. The amount of tax paid on the completion of the purchase is tiered – as the property price increases the rate of tax increases. Click here for our Stamp Duty Calculator.
One cost that you'll need to consider when selling your property is the cost of hiring a removals company. The cost will depend on the size of your property and the amount of furniture and possessions you need to move. You can expect to pay anywhere from a few hundred pounds to several thousand.
Overall, these are just a few of the hidden costs of selling your house that you need to be aware of. While the sale price of your property is important, there are other expenses that can add up quickly. By understanding these costs and budgeting for them in advance, you can ensure that the process of selling your property is as stress-free as possible.
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