House Selling Budget Costs and Checklist
How much will it cost to sell your house? There are two main elements of costs involved with selling your house. These are the costs of finding a buyer, and the legal costs associated with the sale of the property.
House selling budget costs - finding a buyer
Before you can sell your house in the UK you need to pay for a home information pack and Energy Performance Certificate. This will typically cost around £300 - £400, but some Estate Agents are now offering this for "Free", but will no doubt be recovering the costs in their Fees.
Most people choose to use an Estate Agent to find a buyer for their property. For this service Estate Agents charge a fee based on a percentage of the sale price. Fees can range from as low as 0.5% to as high as 4% of the sale value of the house. Shop around and negotiate. Make sure you have a clear idea of the services the Estate Agent will provide, how they will market the property, and importantly ensure that it will be widely advertised on the internet.
You can substantially reduce the cost of selling your house by choosing to find a buyer yourself. Your marketing costs may then be reduced to a few hundred pounds, covering the cost of advertising on the internet, and perhaps a "For Sale" board to put up outside your property. This can be more stressful as you will have to vet potential purchasers yourself, but will save a lot of money on your house selling budget costs. Up to one in five properties are advertised privately and it's a growing trend. Many websites now offer to market your home for a one-off fee of £100 - £200.
Legal Fees - House Selling Budget Costs
There are 3 ways of selling your house from the legal point of view.
- Appoint a solicitor to act on your behalf. Typical fees for selling a house using a sollicitor will range from £400 - £1000
- Appoint a licensed conveyancer to act on your behalf - expect to pay about half as much as you would for a solicitor
- Carry out the legal side yourself. If you have the time and attention to detail required diy conveyancing is a very low cost option.
Additional costs could include an early redemption fee on your mortgage. You may find you will incur a penalty when you redeem your existing mortgage. This is more likely if your current mortgage deal involves incentives such as a discounted or fixed-interest rate.