Selling your house can represent an exciting new adventure in your life. But the cost of making this transition? Well, it’s slightly less exciting.
Estate agents. Removal companies. Solicitors. There’s a lot to think about when selling your house. Even more so if you are selling a house with tenants.
So, now that you have set your heart on a new dream home, it’s important to calculate how much it will cost you to sell a house in the UK. Read on to find out the answer to this important topic.
Energy comes first
Once you decide to sell your house, you are legally required to get an Energy Performance Certificate (EPC). These contain information about the energy efficiency of your property.
This certificate can cost anywhere between £35 to £150, and has been known to vary even further. You should compare quotes from registered energy assessors for this.
The cost of your EPC can be affected by the type of property you own and the number of bedrooms in your house, amongst other things.
It is worth setting aside around £100 for this certificate – although you can go cheaper, if you want.
On the plus side, if the results of your EPC are positive, you can use this to negotiate a better price.
Estate agents don’t come free
Marketing a home and finding a buyer requires more work than you may think. Professional photographs, floor plans, listings, viewings – the responsibilities stack up. That’s why the majority of people choose to use estate agents.
Unfortunately, estate agents don’t come free. They often make up the biggest cost of selling a house.
According to recent studies, the average UK estate agency charges 1.18% commission on the sale of a house. However, some high street estate agents have been known charge up to 3%. In general, you should set aside around 1.5% of your house price for an estate agent.
What does this look like in real terms?
If you are selling a house for £250,000, a typical high street estate agent will charge between £2950 and £3750 over the six months it takes them to sell a house.
On the expensive side of the high street estate agency market, you may be charged up to £7500.
Want to hear some good news about paying your estate agent? Many (although not all) UK high street estate agencies charge a commission of your final sale – so there is no up-front cost. If you don’t sell, you don’t pay. Simple!
Alternatively, cash house buyers like We Buy Any Home are free, and can complete the deal within 7 working days.
Getting your affairs in order
On top of paying for an EPC and estate agent, you will often have to pay for a solicitor. Hiring a solicitor is not compulsory, and many people with legal expertise choose not to – but for the majority of people who have no formal legal training, it’s more convenient and highly advisable to get one.
Your solicitor’s job is to prepare documents for the conveyance of your property. Sales contracts, security checks and money transfers… your solicitor will make sure everything is handled properly.
A recent online study found that hiring a solicitor when selling your house typically costs between £800 and £1800 in the UK. Although, you can find some solicitors that charge a figure around £600.
The good news? The legal fees for selling your property are typically cheaper than for buying. So, if you’ve forked out lots of cash on a solicitor when buying a property in the past, it hopefully won’t be as high this time.
Porting your mortgage
Many people decide to remortgage when they move house – and if this is you, then you can skip this step.
If you want to transfer your current mortgage to a new property, the process is relatively simple. But when moving to a more expensive home, you may have to pay for a valuation and then carry out an affordability check.
The fee for porting your mortgage can vary depending on several different circumstances. It is important to consult an independent expert on this, who can get to grips with your situations, to understand whether there will be any additional costs.
The final cost (usually)…
The boring paperwork has been taken care of and you are saying goodbye to your beloved home. The last cost you have to pay is for a removal company to transport all your stuff.
According to Compare My Move, the average UK removal company costs for a 3-bed house travelling 50 miles are roughly £1,181.
Of course, this price will fluctuate according to the distance the removal company are travelling, the size of your house, and the organisation you choose for this job (different companies have different prices, after all). Many removal companies charge amounts down to £800, or perhaps even lower.
After paying an estate agent, hiring a removal company is one of the most expensive aspects of selling your home.
But stay positive – this is the final cost you pay before you have officially moved out of your house.
The average cost to sell a house in the UK
There are additional factors, beyond the ones mentioned in this blog, that can impact the cost of selling your house in the UK. For example, some sellers have to pay a Mortgage Exit Fee, Surveying Cost or Capital Gains Tax – speak to an expert about this, for guidance applicable to your circumstances.
Therefore, if you are selling a £250,000 house and trying to keep costs down…
For an energy price certificate (£35), estate agent (£2950), solicitor (£600), porting your mortgage (TBC) and removal company (£800), you can expect to pay at least £4390. Of course, if you choose a more reputable removal company, estate agent and solicitor (along with a pricier EPC) it will often be over £5000.
If you are selling a £750,000 house and trying to keep costs down…
For an energy price certificate (£35), estate agent (£8850), solicitor (£800), porting your mortgage (TBC) and removal company (£1000), you can expect to pay at least £10,685. Of course, if you choose a more reputable removal company, estate agent and solicitor (along with a pricier EPC) it can be more than this.
Recent research has found that the cost range for selling a house can be between £2,696 – £10,956. This can certainly be the case – although, if it costs below £4390 to sell your house, you should be particularly vigilant to make sure that all paperwork is being properly completed, your estate agents are doing enough to support you, and your removal company is suitable for your needs.
It is also worth taking into account the general costs associated when running a home. The average time it takes to sell a property on the market currently stands at 6-9 months. This means 6-9 months of household bills such as energy usage and council tax that you will continue to pay until you reach completion – something those selling a house they don’t occupy in should take particular note of.
Sell your house fast with We Buy Any Home
Are you looking to sell your house fast? We Buy Any Home can buy your property in as little as 7 working days, for free. We don’t charge any fees or commission, and even cover your legal fees, meaning you don’t have to worry about all the costs outlined in this blog.
We are a founding member of the National Association of Property Buyers (NAPB) and members of The Property Ombudsman (TPO), meaning we follow strict guidelines and offer maximum protection to house-sellers.