Selling your house or flat is a good way to raise funds and help to pay for moving to a new home, but before you sell you should be aware of the various costs involved.
Why it costs money to sell your house
As the consumer watchdog Which? has noted, even though moving house is usually a way to raise funds, it can also cost a fair amount of money.
There are various charges at several stages in the selling process, including before finding a buyer because of fees that you might have to pay to get the necessary paperwork in place for a sale. Once your home is listed for sale you’ll then have to think about costs such as the fee an estate agent might charge you if you’ve decided to sell that way. And even after you’ve found a buyer there are more costs to pay, including spending money on removal companies that will take all your belongings and move them from your current home to your next property.
Because of all these costs, the average price for moving to a new house in the UK is said to be generally between £5,000 and £8,000 roughly. That’s a significant amount of money, and you’ll have to subtract that from your final sale profit once you find a buyer.
Below you’ll find a summary of the biggest costs that you might face when selling your property, as well as a couple of tips for helping to reduce or avoid those charges.
Checklist of the most common costs involved with selling a house or flat
Here’s a quick checklist of some of the costs people frequently have to pay when they’re getting ready to sell their house or flat, ranging from relatively small fees to major expenses:
- Obtaining a mortgage or remortgaging
When you sell your house or flat you’re probably looking at buying another home, and this will require either getting a completely new mortgage or remortgaging your current loan to help cover the purchase of your new property. There will be fees associated with either approach, so check with your lender in advance to know what these are.
- Estate agent or auctioneer fees
Hiring an estate agent or selling your house through an auctioneer can be a good way to pass on to a professional the hard work of marketing the sale and finding a buyer. But auctioneers and estate agents will charge fees for their services, and you’ll have to deduct these from whatever final sale price you’re able to get.
- Cost of obtaining an Energy Performance Certificate (EPC)
As part of the documentation for selling your home you’ll be required to obtain an EPC that details the energy efficiency of your property. If you already have an EPC you should check to see if it’s still valid, as they last for a decade. If you need to obtain one they are relatively low cost and can be obtained for between £50 and a little over £100.
- Fees for conveyancing
Solicitors are a necessity for most people when it comes to house or flat sales, because there is a lot of paperwork involved with selling a property beyond the EPC. Be sure to set enough in your budget for moving to a new house that you can cover the costs associated with hiring a legal professional to complete the sale.
- Paying for a removal company
Once the sale of your house or flat is complete and you’re ready to move to your next home, you’ll likely have to use the services of a removal company to transport your furniture and other belongings. Depending on how many items you have to move, the costs for hiring a removal company can be quite high.
Ways to reduce or avoid costs when selling your home
Although you’ll have to pay fees for selling your house or flat through an estate agent or an auctioneer, there is another way to sell that can avoid any charges. Contact a quick property buying company because these businesses typically offer people cash payments for buying their homes. That can be a great way to keep all of the profit from selling your house.
Another good tip for reducing the costs associated with the sale of your home is to shop around for the various services you use, whether that’s estate agents, removal companies, solicitors, or any other support you need to pay for when moving. Don’t simply go with the first company you find. Take your time to ask around for the various rates and fees that businesses will charge, and pick the one with the lowest costs so long as they have good reviews.
Remember that selling your house or flat should be a positive experience and one that helps to improve your finances, so consider the steps above to retain as much profit as possible.