We all know the feeling,
Everything about selling a house will involve expenses. While your agent can cover many costs, there are some that you will have to pay for yourself. The cost to sell a house varies widely, and it’s important to know the expenses involved.
The cost of selling a home is broken down into estate agency fees, remortgaging cost, conveyancing fees, Energy Performance Certificate (EPC1), and removal company cost.
Estate Agency Fees
It’s the commission fee for the estate agent fee. It is the money that goes to an agent from the seller when they sell their property. Most online estate agents charge a commission rate from 0.25% to around 15%.
This is the first expense you will need to prepare for when selling your home. There are no set rates, and they can vary depending on where in the country you live and on what property type, you’re selling but it’s safe to assume that an average agency fee would be between £350-£700.
Porting vs Remortgaging, Which Is Better?
The mortgage fees are a one-time fee that occurs when you first buy your home. You’ll pay this again if you refinance the house to get more money out of it or sell it for an amount less than what is owed on loan.
These vary by bank and can range from 0% up to hundreds of dollars depending on how much equity you have in the property.
When you sell your home, the first thing to consider is whether it’s worth remortgaging. You need to ask yourself a few questions before deciding: are your monthly repayments more than 90% of your income? Do you think that they’ll be higher in future years? Is there anything significant wrong with the property, such as fire damage?
If any of these apply, then mortgaging may well be an option for you. But if none do, then it might be better just to port especially when interest rates are so low.
It’s the cost of legal advice on selling and buying a property. It can be used in either direction to sell or buy. The potential buyer pays this to their solicitor, while the seller pays it to theirs.
On the other hand,
Legal fees will vary depending on location, type of sale (private treaty vs property auctions), and the complexity of your property transactions. Some solicitor’s fees can be per hour for inquiries, with others charging one fixed fee upfront which covers all aspects necessary for completion plus VAT at 20%. The average conveyancing cost can range from £300 to more than £3000.
Energy Performance Certificate (EPC) Fees
This is an important document2 if you want to sell your house. It’s not that expensive, and it will give potential buyers the peace of mind they need before committing to their purchase.
You can get one from an accredited company for an average cost of £150. It’s best practice to renew all energy-efficient certificates on properties over five years old every ten years, with most being valid for 25-year periods. This ensures homes are continuously up to date with current building regulations which may have changed since the last certificate was issued.
Removal Company Costs
The hiring of a removal firm depends on what services you need, such as packing materials or end-of-tenancy cleaning. Some companies charge by weight and some provide an all-inclusive package price that includes loading the items into your vehicle and taking them to the storage facility.
Generally, the removal costs will be around £150 per hour plus labor charges depending on how many men are required to complete this task. However, most people choose to use their own car so they can save money and load lighter for less expense.
Can a Seller Refuse to Pay Closing Costs?
It is not unheard of for a seller to refuse to pay any closing costs. However, this can make it more difficult for buyers who obtain financing and need those funds from the seller to get their loan approved. These expenses should be discussed during negotiations on a purchase agreement between two parties so that everyone knows what has been agreed upon ahead of time.
How Much Do You Lose Selling a House as Is?
There are the obvious costs of repairs to make it more marketable, staging if you want to attract potential buyers who prefer specific features. You’ll also have mortgage points which was an upfront fee for receiving your loan at the beginning instead of monthly payments; this is different from prepaid interest because that’s just paying off money owed on credit cards in full rather than carrying them month by month.
But there are some less-obvious costs associated with selling, too, especially when you’re not going through a real estate agent but do everything yourself.
How Much Is the Cost of Selling a House with a Realtor?
The Realtor cost varies by location and time. In general, expect to pay about five percent of the sale price as a commission fee.
Can I Find a Conveyancing Solicitor Online?
Conveyancing providers, including estate agents, can be found online. They advertise themselves as being less expensive than their high-street rivals, but all of them operate as call centres, so you won’t have a single point of touch. Check online and high street conveyancers and solicitors for recommendations, and if you know anyone who has moved in the last year, ask them if they can suggest their lawyer.
So go and take the next step!
You might need to sell your home if you’re in a situation where it is no longer practical for you to live there. Whatever the reason may be, selling your house can seem like an overwhelming task with all the work that goes into it.
Still, once this process is completed successfully, many homeowners find they’ve been freed from burdensome debt and gained financial independence through equity appreciation over their time living in the property and perhaps even increased net worth. As always, we recommend speaking with an experienced property expert for advice and guidance.