Table of Contents
- What are the costs of selling a house?
- Energy Performance Certificates
- What do I need to do to sell my house?
- Estate agent fees for selling
- Conveyancing solicitor fees
- Removal Costs
- Mortgage charges
- Incentives
- Taxes
- How to calculate profit when selling a house
- Accepting an offer
- Contracts
- Key Takeaways
What are the costs of selling a house?
These tables detail and potential extra costs you’ll have to pay for;
Basic Costs When Selling a House
| Item | Cost |
|---|---|
| Estate agent fees | 0.5% - 3% + VAT |
| EPC | £35-£150 + VAT |
| Removal Costs | £250-£4,000 |
| Conveyancing Fees | £550-£1000 |
Potential Extra Costs When Selling a House
| Item | Cost |
|---|---|
| Incentives | See notes below |
| Early Mortgage repayment charge | 1-5% loan amount is typical |
| Preparing house for sale | Depends on work needed |
| Mortgage exit fee | £50-£300 |
| Capital gains tax | See below |
| Home report | £100-£100+VAT |
Use our helpful calculator to work out the costs of selling a house - Instant quote comparisons for your selling fees and our selling property checklist to stay on top of your sale. Our calculator can save you time around the board. It can save you time by doing multiple calculations at once, this way you will know what you can afford and what you are going to get.
Our calculator will tell you to have much of your money will be going towards the estate agent fees, removal costs, Conveyancing Fees and Conveyancing Disbursements. The calculator will help you to understand what price you are to expect all together and how much you should look to budget on each section
When selling property, there are many things that you must consider whilst selling your property. See below to go over these factors in further detail.
Energy Performance Certificates
Energy performance certificates are compulsory items for anyone selling a home and you need to order one before your property is placed on the market.
Essentially, these certificates contain information about how energy efficient your property is, the typical energy costs and advice on how to save money and reduce energy costs. EPCs are available to buy direct from providers found on the internet or your estate agent will be able to arrange one for you. These certificates are valid for 10 years from the date of issue.
EPCs are important as it allows you to compare the energy efficiency of different properties which highlights the energy efficiency improvements you could make.
What Do I Need to Do to Sell My House?
The first thing you should do when considering selling your property is to get a valuation, an online estate agent can give you a general idea, but you are better off getting a local solicitor or licensed conveyor for your evaluations when moving to a new home.
However, you should consider getting extra ones done because the valuation can vary and you don't have to stick to one seller, the price of the hose is up to you. Transferring ownership of a property to potential buyers is a legally binding action, which means you need to get a lawyer to transfer ownership; this action is called conveyancing.
At this point, you may get an offer and must sign the exchange contracts. This is the point at which you are legally bound to the sale, only if the buyer pulls out will the sale not proceed at this point. Once you have moved out in the time agreed, the solicitor will report the transfer of ownership of the land and will collect on their percentage which they agreed on before the sale started.
Estate agent fees for selling
Cost range: 0.75% - 2.5% + VAT (of final sale price)
- 96% of all house sellers use traditional high street estate agents.
- Most of these agents charge a percentage fee based on a “no sale no fee “basis.
- The average UK estate agency fee is generally around 1-1.5% + VAT.
- All estate agents are obliged to ensure all fees and charges are quoted inclusive of VAT.
- Using more than one estate agent will have you quoted a higher fee which is usually between 2 and 3% +VAT.
Auction
If you’re considering using an auction when you sell your home, then there are 2 potential fees to budget for.
- £0-£3,000 +VAT – Auction Entry Fee
- 2%-3%+VAT – Commission on sale (No sale no fee)
Some auction houses will claim to sell for 0% commission; however, they’re charging the buyer and as such, the buyer’s offer will take this fee into account.
Conveyancing Solicitor Fees
Cost Range: £550 - £1000 inc. VAT
Conveyancing solicitor fees will vary enormously from house to house. Some will charge a percentage of your home’s value and some charge on a more secure fixed fee basis.
When it comes to selling a house, solicitor fees for this process will often be cheaper than when buying a house. This cost will depend on whether your proper is leasehold or freehold and whether you have a mortgage.
If the property has a mortgage and is leasehold, then there will be more work for the conveyancer and so they will look to charge a higher fee.
| Property Type | Cost |
|---|---|
| Freehold + no mortgage | £575 inc. VAT |
| Freehold + mortgage | £612 inc. VAT |
| Leasehold + no mortgage | £768 inc. VAT |
| Leasehold + mortgage | £805 inc. VAT |
The conveyancing process must be handled by a licensed conveyancer or specialist solicitor. Find a conveyancing expert early in the process of selling your home.
Removal Costs
Cost range: £250 - £4000 + VAT
This cost range varies depending on the following factors:
- Quantity of possessions
- Deciding who does the boxing up
- The accessibility of your house
- The distance to your new home
- Storage space requirements
If you are thinking of taking the DIY approach to moving, you need to consider the costs of hiring a van, goods in transit insurance, fuel cost and suitable packing materials. Although this is cheaper than using a removal firm, it would be a far more stressful experience from a logistical sense.
Additionally, you need to ensure you are on top of your household contents insurance, for example, will your policy cover you for the move? If it doesn’t, you may have to pay a premium of £20-£30 to get the extra cover you need. However, for a fee, removal firms may offer to cover you with their own insurance policy.
Mortgage Charges
There are two mortgage related charges to be aware of when it comes to selling a house.
- Mortgage exit fee
- Early repayment charge
Mortgage Exit Fee
Cost range: £50 - £300
Mortgage Exit Fee’s are also known as MEAFs. This is the charge your pay to your lender for closing the file on your mortgage. It is a charge processed when your mortgage balance is cleared.
You will need to ensure that the fee being charge is the same as the fee set out in your original mortgage contract. If you check your fee and it seems unfairly high, then you should visit the Financial Ombudsman service to review the complaint procedure.
Early Repayment Charge
Cost range: 1% - 5% of loan amount.
If you are intending to pay off your mortgage early check with your lender to see if a redemption charge is payable. This fee can sometimes be large than expected and you may not have been exposed to all the exit fees when you initially signed up for your mortgage.
Incentives
Cost range: Dependent on incentive
If you are struggling to sell your home because you’re up against several similar properties, then you can either drop the price or offer some incentives to make your home more appealing to buyers.
Seller/Buyer incentives
Incentives often work best when tailored to the type of buyer you’re targeting. As an example, if you targeted buy to let investors, then a good incentive would be to offer 3 months rental income paid.
Here are some seller / buyer incentives to take note of:
- Free Legal (£500 - £1000)
- Stamp Duty Paid (dependent on the property value)
- Furniture pack (£1000)
- Removals paid (£250 - £4000)
- 2-3 months rental income paid (dependent on market rate)
- High street voucher (£500)
Capital Gains Tax (CGT)
If you only own one home, there is no CGT to pay when you sell it. This is due to a tax relief called private residence relief. Despite this, if you own more than one property, the sale of any property other than your main residence will most likely be subject to Capital Gains Tax.
- The current tax rules allow you to hold on to your old home for 9 months before CGT liability intervenes.
- Your CGT liability is based on the amount the property has increased in value during your time of ownership.
- You are allowed to deduct the cost of improvement works and the transactional costs of buying and selling the property.
How to Calculate Profit When Selling a House
Most sellers will need to know how to calculate profit when selling a house.
To work this out you need the sale price (A), your mortgage balance (B) and the total cost of selling (C).
Use these figures and place them in this simple arithmetic.
Gross Profit = A – (B+C)
Accepting an Offer
When you first receive an offer, make sure you negotiate! Many buyers will offer much less than they are prepared to pay, and your estate agent will advise whether the offer is acceptable or not.
Contracts
Once the final terms of your contract of sale are finalized, the contract is exchanged with the buyer, which legally binds the sale. If you choose not to go ahead with the sale, the buyer could sue you! If the buyer pulls out at this stage, they lose their deposit.
Key Takeaways
Before you leave this page, it’s important to take these 3 points away with you when it comes to the costs of selling a house.
- It can be very easy to underestimate the costs involved, especially if you’ve not been through this process before.
- Avoid falling into the trap of being “penny-wise but pound-foolish” in a bid to cut costs.
- The best sellers will focus on paying a fair fee for services that will help them collect the best sale price. This is how you pocket the most profit from a sale.
Frequently Asked Questions
The first thing you should do when considering selling your property is to get a valuation, an online estate agent can give you a general idea but you are better off getting a local solicitor or licensed conveyor for your evaluations when moving to a new home. However, you should consider getting extra ones done because the valuation can vary and you don't have to stick to one seller, the price of the hose is up to you. Transferring ownership of a property is a legally binding action, which means you need to get a lawyer to transfer ownership; this action is called conveyancing. At this point, you may get an offer and have to sign the exchange contracts. This is the point at which you are legally bound to the sale, only if the buyer pulls out will the sale not proceed at this point. Once you have moved out in the time agreed, the solicitor will report the transfer of ownership of the land and will collect on their percentage which they agreed on before the sale started.
It is advised to plan before you sell your property, an estate agent won't do enough planning for a smooth sale. The biggest fee when moving house is the fees that the estate agent will charge you for their marketing. Every estate agent will have their own set percentage, but the majority of high street estate agents will charge around 1 to 3 percent of the sale amount. Therefore your estate agent will vary based on the estate agent you're using and the price value of your property. If you have Furniture on your property, and you are wanting to take it with you, it is most likely going to cost you a fair amount to transport the items to your new house. The variables here are how heavy your furniture is and how big the distance is that you need it moved. This price is normally quite low unless you have a large house or a moving to a vastly different area. There are also legal fees to keep in mind when selling a house. You will have to pay solicitor fees because although the buyer is paying for the searches, you still have to pay for a licensed conveyancer when selling. This fee should set you back up to around £1500 maximum. Anyone selling a house is legally obligated to provide an energy performance certificate, which has information about the efficiency of the electrics in the property. If you don't have this certificate, it will cost you around £100 to get one.
CONSIDER
Important Steps
FINANCES
Check if you have any outstanding finances related to your property, such as mortgage payments. You will need to check if you will have any early repayment fees through your mortgage provider before you sell your house!
CHOOSE AN ESTATE AGENT
Although it is possible to sell without an estate agent, it is far simpler to use an estate agent with access to online portals such as Right Move or Zoopla. Your agent will often manage viewings on your behalf as well as handle any communications with the buyer and manage things like capital gains tax and tell you things like your houses energy performance certificate.
LEGAL REPRESENTATION
The conveyancing process must be handled by a licensed conveyancer or specialist solicitor. Find a conveyancing expert early in the process of selling your home.
ACCEPTING AN OFFER
When you first receive an offer, make sure you negotiate! Many buyers will offer much less than they are prepared to pay, and your estate agent will advise whether the offer is acceptable or not.
CONTRACTS
Once the final terms of your contract of sale are finalized, the contract is exchanged with the buyer, which legally binds the sale. If you choose not to go ahead with the sale, the buyer could sue you! If the buyer pulls out at this stage, they lose their deposit.
MOVE OUT
The final step in the sales process is to move out of the property on the assigned day and pay off the mortgage (if applicable) as well as your fees.
Moving Costs
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