When it comes to selling your home there are a lot of associated costs which you may not factor in. Many people who sell their home can sometimes be caught out by these costs, which can make for the moving process to become a lot harder. At Norwich Home Buyers we speak with clients about this on a daily basis. So in this article we look at the cost of selling a property.
Estate Agent Fees
Even though it is possible to sell your home by yourself, it is still vastly popular to use an estate agent’s services. Using a conventional high street agent will usually be the way you go, and in terms of fees this will vary. However most tend to operate a fixed percentage charge for selling your home. If you do decide to use online services, this will usually come with a fixed amount.
If you are selling your home with an outstanding mortgage then you need to consider the costs of porting or remortgaging. Both have associated costs, and both come with extra fees that you need to be aware of. We have detailed them below:
Porting A Mortgage
Porting a mortgage is when you transfer your mortgage from your old house to your new house. And subsequently then have a mortgage with the same lender as before. Things you need to consider are:
- Borrowing The Same – You will need to have a mortgage valuation survey completed. This will cost around £450.
- Increasing Borrowing – If you are needing to borrow more money on your mortgage, most lenders will charge a fee of £100-£500.
- Decreasing Borrowing – If you are lowering your mortgage the lender will charge around 1%-5% of the difference in the amount.
If when you move home you decide to change your mortgage provider you will need to go through the process of remortgaging. Some of the costs are as follows:
- Arrangement Fee – £1000 – £2000
- Booking Fee – £100 – £250
- Valuation Fee – £150 – £1500
- Early Repayment Fee – Will be solely dependent on the lender.
When it comes to selling your home, you must provide any potential buyers with an EPC certificate for your home or as it is also known as an Energy Performance Certificate. If you are buying a new build home they will tend to have a better EPC rating, whilst older homes tend to be further down the scale.
In terms of costs, it will be between £50 and £120. However they are valid for 10 years. Therefore if your home was bought around a decade ago you will be able to use the same one you had on the original purchase. If you are in need of an EPC you can get this from an accredited domestic energy assessor. Your estate agent will be able to advise you on who to contact.
Conveyancing & Solicitors Fees
A solicitor is the potentially one of the most costly parts of the moving process, however is also one that cannot be avoided. A solicitor will be the link between yourselves and any potential buyers from a paperwork and also legal standpoint. Choosing your solicitor is key and ensuring they have experience in the property market is also important.
The right solicitor can make the process run smoothly. And this will be needed due to the vast amount of other things you will have to occupy your mind.
A removal company may not seem like a big cost, but you need to consider how you are getting your belongings from A to B. And if you have a large home, or even many possessions then you are going to need more removal space.
When it comes to looking for a removal company it is worth looking at multiple options to get a rough understanding of the average cost. House removal companies will have various charges, and this will all be dependent on how much you are moving and also the distance between your home and new home. Other factors affecting the cost are as follows:
- Size of van/lorry required
- Distance from the hold home to the new one
- Time of day/week/year
- Do you want professionals to pack it for you
- Packaging materials
Other Costs To Be Aware Of
The cost of selling a property alsos extends further than the usual ones above. These instances are as follows:
Capital Tax Gains
If you are in the process of selling a home in which you do not live in i.e. a buy to let then you are liable to pay capital tax gains if you are profiting from that sale. Outside of the buy to let you will also need to pay tax if you it is:
- Inherited Property
- A Holiday Property
- Business Premises
These costs are always worth being aware of as you will to deduct the necessary tax from any profit in which you make. This potentially could have an effect on the size of the deposit you put on your next property.
Sellers are not liable to pay this tax, however it is always good to be aware of. On the day of completion a buyer of a home is liable to pay the stamp duty which is due. However, this sometimes does not affect first time buyers when purchasing a new property.
As you can see the cost of selling a property can be extensive, and ensuring you have all of your costs covered is going to be key for a smooth transition when selling your home. At Norwich Home Buyers we are experienced within the property market and have spent many years advising our clients on the associated costs. If you would like some more information then please do not hesitate to Contact Us.