publication date: Dec 24, 2010
author/source: Kate Faulkner, Property Expert and Author of Which? Property Books
Cost of Selling a House
Many people don’t sit down before they sell a property and work out what all the costs are. Independent property guru Kate Faulkner, author of four books for Which? the consumer organisation says “When you are selling property, it is essential to work out not just the costs but also what money you will need and when”.
Key Costs Selling a Home
The biggest cost when you sell your main residence home is likely to be the cost of an estate agent. Many people aren’t keen to spend money on a good agent and prefer to cut corners – this isn’t a good idea! It’ll buy you the cheap agent that won’t give you a good level of service. Saving costs on a poor agent during a recession isn’t a good idea in the long run, you are likely to end up accepting an offer much lower than you could have done as it’ll probably sit on the market for longer.
Estate Agent Costs
Typically an estate agent charges around 1.8% to sell your home. So if it’s worth £200,000 x 1.8% = £3,600. For help finding an agent to sell your home, contact us.
The next cost when selling your home might or might not apply. This is the cost of redeeming your mortgage. Some companies will penalise you say four or even six months for redeeming your mortgage ‘early’ ie before the 25 year term is up or if you took out a mortgage for five years on a fixed rate and move after two. This can add up to several thousands of pounds, so it’s worth writing to your mortgage company and asking them to confirm in writing if there are any additional charges you need to be aware of if you sell your home.
Legal Selling Costs
The cost of your legals typically depends on the price of your property, although there may be a minimum charge. NEVER choose a ‘cheap’ legal company, they charge less money as they typically take on too many cases, so it almost guarantees you a stressful move! A decent legal company will probably cost upwards of £400 up to £1,000 for expensive homes. If you are selling a property that is leasehold, Listed or of an unusual construction, it might cost an additional £100 as they is likely to be more legal work involved.
Only ever take on a legal company that offers fixed fee pricing and ‘no sale no fee’ so if your sale falls through, you don’t end up losing the money spent on a solicitor.
For help finding a legal company to sell your home, contact us.
Other Selling a Home Costs
There will be other costs such as removals which for small homes might be just a few hundred pounds for van hire and petrol through to £1,000 for a good removal company out of the area and over £1,500 if you are going overseas.
It is worth putting aside a further £500 for ‘incidentals’ such as the cost of transferring money between solicitors and mortgage lenders as well as your bank and other costs, such as cleaning your home and costs for meals etc on the move day.
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