How Much Does It Cost to Sell a House?
The cost of selling a house in the UK can vary, but typically the costs need to include estate agent fees, conveyancing fees, removal costs and EPC. There are also numerous other costs to sell a house that you perhaps have not considered.
In this blog we will run through a list of potential costs to sell a house as well as how to reduce them.
Different type of agent fees
Estate Agent fees
Traditional estate agent fees are typically between 1-2% +VAT of the house sale price. The more expensive the property for sale the more you will have to pay. In most cases the estate agent fees are paid when the property is sold. Some estate agents may charge for marketing a house for sale or a fee for their time and effort regardless of whether the house sells.
Therefore, always discuss the terms of the agreement before signing to make sure you understand when and how the fees will be paid in the event that the property does not sell.
Online Estate Agent fee
The fees charged by a web-based estate agent are typically lower than those charged by a traditional estate. They typically charge a fixed fee which can vary from £100’s to over £1,000. You will have to pay this regardless of whether house sells or not as this fee is usually a one-off payment for a set period of time, during which time your property is shown on their website.
Whilst the online estate agent is cheaper than the traditional estate agent you will have to handle all the enquiries yourself. And as mentioned above regardless if your house sells you will still have to pay the fee.
A cash house buyer like Gaffsy does not charge fees and can provide a free cash offer today so if you do want to reduce the cost to sell a house it is worth contacting us.
Gaffsy says… It is important to not only compare the cost to sell house but also to take into consideration the level of service, exposure and support offered before making a decision. We also recommend you read and discuss all the terms and conditions carefully to ensure you fully understand all the costs involved.
Solicitor fees for selling a house in the UK
The solicitor fees to sell a house typically range from £800 to £1,500, but can vary depending the price of the house being sold, the location on the complexity of the transaction. The more complex the transaction the larger the fees and potential disbursements.
The fees usually cover the following services:
- Conveyancers basic fee
- ID check
- Bank TT fees
- Office copies and Title plan
- Transferring ownership
- Buyer Enquiries
- Property Information Form for a leasehold property
- Drafting the contract of Sale
- Contract signing
- Exchange of contracts
- Receive Deposit
For a full detailed breakdown of solicitor’s fees for selling a house check out our guide “How much are solicitor’s fees for selling a house” It give you a blow by blow account of how much you can expect to pay for conveyancing .
Gaffsy says … We recommend you get quotes from different solicitors and compare their services, fees, and reputation before making a decision to instruct one. If you proceed with your cash offer from Gaffsy we will introduce you to a solicitor and cover your fees.
Are you selling a leasehold property?
If the answer is yes, then when selling a leasehold property in the UK, you the seller may be required to pay for a Management Information Pack (also known as a Leasehold Information Pack). This is a collection of documents that provide information about the property, including details of the lease, service charges, ground rent, future planned maintenance works, last 3 years of annual accounts for the management company, external wall fire review for blocks of flats over 18meters, asbestos survey, building insurance, notice fees, deed of covenant fees and other freeholder fees as well as notice of any disputes and enfranchisement. The cost of a management information pack can vary, but it is typically between £350 and £500.
Gaffsy says ... it can take in excess of 4 weeks to get a leasehold management pack so if you want to sell your house quickly then get onto your management agent and/or solicitor as soon as possible to expedite the process.
Did you check mortgage fees?
Mortgage Exit fee
Some mortgage providers charge a Mortgage Exit fee, also known as a Mortgage Discharge fee and Repayment Administration fee. This can be charged when the mortgage is repaid in full or when it is transferred to another lender or when the borrowing is transferred from one property to another. The fee is typically a one-time charge that ranges from £50 to £300 or more, depending on the lender and the type of mortgage.
Gaffsy says … check the terms and conditions of the mortgage agreement to understand the cost of the mortgage exit fee, and to factor this into the cost to sell house.
Do you need to factor in early repayment charges?
Early Repayment charges
Early repayment charges are a penalty imposed by the lender for paying off the mortgage before the end of the deal you are on. The charge is not a flat-rate fee it iscalculated as a percentage of the amount still outstanding on your mortgage, typically between 1-5% and will vary depending on the type of mortgage, the amount outstanding and the number of years left on the term. These charges can be many thousands of pounds.
Gaffsy says ... if you can time the selling of your property with the ending of your deal to avoid paying early repayment charges do. The early repayment charges are substantial. Similarly, if your current deal has come to an end and you know you’ll be downsizing or selling your house shortly it might be worth sticking with your providers standard variable rate for a month or two rather than move to a new deal so as to avoid paying the early repayment charges.
Have you budgeted for taxes?
When selling a property in the UK, you maybe subject to the following taxes:
Capital Gains Tax
This is a tax on the profit made from selling a property that is not your main residence. The current capital gains tax rate is 28% for higher-rate taxpayers and 20% for basic-rate taxpayers. There is an annual exemption of £12,300 for individuals, which means that up to this amount of profit can be made tax-free.
Stamp Duty Land Tax
This is a tax on the purchase price of a property, which is paid by the buyer. However, if the seller owns multiple properties, they may be subject to an additional 3% stamp duty land tax surcharge.
Gaffsy says … make sure you consult with a tax professional or HM Revenue & Customs (HMRC) to understand the tax implications of selling a property in the UK, and to factor these into the budget for the sale.
Did you include the cost of removals?
The removal costs vary and will depend on the volume of belongings that you want to move, the distance between your sold house and you new house, the ease of access to your properties, whether you want a packing service and if items require special care. On-line quotes will take distance and average size of property when they provide a quote. In order to get an accurate quote expect to speak with the removal firms directly.
If you intend to do it alone and sort out the move yourself it will be cheaper than hiring a removal company but make sure you factor in hiring a van, goods in transit insurance, fuel and packing materials. Whichever choice you decide upon just ensure the cost of the removal is fully accounted for in your cost.
Gaffsy says .. if you are not moving into another home straight away and need to put your belongings into storage, make sure you include this in your cost to sell a house too.
Don’t forget the Energy Performance Certificate
EPCs were introduced in 2007 and are valid for ten years you can check the EPC register for properties in England, Wales and Northern Ireland and Scottish EPC register for Scottish properties to see if one is in place.
If you do not have one you must order one before you market your house to sell typically, you’ll be looking at between £60 -£120 to have an EPC carried out.
Gaffsy says .. there isn’t a set price for an EPC so you should compare quotes for energy assessors in order to get the best deal.
So, to answer the question how much does it cost to sell a house?
New data obtained exclusively by Which? shows existing homeowners spend just over £14,000 when moving house. With the biggest cost going to estate agent’s fee.
At Gaffsy we can buy any home fast we won’t charge you agency, legal or EPC fees. We can buy your house for cash no matter the condition and as cash buyers we can ensure a quick and hassle-free sale.
We are members of The National Association of Property Buyers and The Property Ombudsman, so you know you are in good hands.
Give us a call or fill in our online form to receive a no obligation cash offer which you could have in your bank in full without any fee deductions.