How much does it cost to sell your property?
Most people regard buying a house as the most expensive type of property transaction – and rightly so. But selling a house can also be a costly exercise. In this guide, we run through the costs involved in selling your property.
Mortgage fees
Are you still within your mortgage term? If you’re planning to sell while still in a mortgage agreement period, you could end up paying early redemption fees to your lender, and these can run into the thousands. If you can hang on in your current property until your agreement period finishes, you could be a lot better off.
Commission
If you’re planning to use a traditional ‘bricks and mortar’ estate agent, you’re likely to pay them commission, which is usually calculated as a percentage of the final sale price. This can be up to 3%, which makes a high street estate agent a far costlier option than their online counterparts. Online estate agents are growing in popularity and are usually much cheaper. You pay them a set fee instead of commission, but you’ll need to pay this upfront.
Refurbishment
To maximise the value of your property, and help it sell quickly, it’s a good idea to spruce it up a bit before it goes on the market. Depending on the condition of your home, this could be anything from a quick lick of paint and a vase of fresh flowers, right through to replacing kitchen units and revamping the bathroom. If your house would benefit from major improvements, just make sure it’s not going to cost you more than you gain through an increased sale price. And of course, make sure you budget for any home improvements when putting your figures together.
Valuation
Putting your home on the market at the wrong price could cost you heavily. Undervalue it and you could find that your property gets snapped up for far less than it’s worth. Price it too high and you could end up waiting around for months to find a buyer.
To make sure you get the balance right, obtain at least 3 valuations from local estate agents. And do your own homework by looking at sale prices for similar homes in your area.
Conveyancing
Once you’ve accepted an offer, you’ll need to instruct a solicitor or conveyancer to act for you. They’ll take care of the legal aspects of the sale and make sure everything progresses. Like estate agents, you can opt for a traditional high street option who you can meet face to face, or a more modern, online conveyancer. Your choice will depend on your needs and preferences, so see our guide to choosing a conveyancer.
Other costs associated with selling a property include:
Removals
Paying a reputable firm to handle the move on completion day is probably the easiest and most stress-free method, although if you’re on a budget, you could cut costs by handling this yourself.
Energy Performance Certificate
The EPC gives potential buyers an overview of how energy efficient your property is. This is a compulsory cost associated with selling a property.
Selling your property? To get a free quote for conveyancing, just get in touch.
