May 23, 2022
Selling your home is a big decision that involves the worry of process costs. But how much does it cost to sell a house? Our guide addresses how to sell your home, how much each aspect of the process costs, and the total price you should expect to pay.
How to Sell Your House
Before you begin thinking about selling costs, you need to prepare to put your house on the market and go about it in the right way. Consider the following actions to sell your home seamlessly.
- Find a real estate agent: The highest fees for selling a house are the estate agent fees. You need to find a good agent who will get you the best price for your property.
- Determine a selling price: It’s wise to have your home valued. Check online first to get a general idea, then schedule an appraisal.
- Check the terms of your mortgage: It’s essential to check whether your mortgage is portable or you’ll be responsible for paying additional charges.
- List the house and prepare it for viewing: Once you list your house, prepare it for viewing and be ready to accept visitors.
When you’ve completed the measures above, you can calculate the cost of selling a house. The following section lists all the costs you should be aware of.
|DID YOU KNOW? Most first-time homebuyers in the UK are 26 years old. Statistics show that new homeowners need four months and three weeks to settle into a new property.|
How Much Does It Cost to Sell a House?
When the sale process begins, keep in mind all the expenses you’re liable for. Our list below addresses what you need to pay; the numbers and percentages represent the average. So selling your home can cost significantly more or significantly less.
Estate Agent Fees
The most considerable expense you’ll have during the house-selling process is the fee(s) for the estate agent. Of course, you can sell your home privately, but it’s not recommended. You can use an online estate agent or a high-street agent. The selling house fees can be lower if you use an online agent because they typically charge a fixed fee ranging from £300 to £1,500, plus VAT.
This fee, however, has to be paid upfront, regardless if they manage to sell your home. High-street agents have better success rates and offer a ‘no sale, no fee’ option—if they don’t sell your home, they won’t charge you a fee. If the agent sells your house, you’ll be charged a percentage, typically between 0.75 and 2.5% of the final sale price, plus VAT.
Selling your house at an auction is an alternative to selling your home with an agent. But how much is it to sell a house at an auction? Some auction houses charge an entry fee of £0 to £3,000, plus VAT. On top of this, you need to pay commission on the sale, which is 2 or 3% of the final sale price, plus VAT. If your property doesn’t sell at the auction, you’re not obliged to pay a commission.
Solicitor fees can vary depending on if there’s a mortgage or the property is a leasehold or a freehold, and the property location. So how much do solicitors charge to sell a house? There’s a £1,000 legal fee, plus conveyancing fees or conveyancing disbursements that amount to £46 (£40 telegraphic transfer fee and £6 Land Registry search). Some solicitors provide a fixed fee—an excellent offer to receive. And if you’re selling and buying simultaneously, you can get a better offer from your solicitor.
An Energy Performance Certificate (EPC) is mandatory when selling your property. The cost to sell a house would be incomplete without factoring in the EPC, costing between £60 and £120. This digitally stored document is valid for 10 years and can be accessed via the EPC Register website. When obtaining this document, you improve the chances of your home being sold, as it gives a clear picture of the property’s energy usage and costs—buyers will know what they’re getting for their money.
Getting a mortgage can be a complicated process, but selling your house can also complicate your mortgage situation and accrue additional expenses. So how much does it cost to sell a house on the UK market if you still have a mortgage?
You can either ‘port the mortgage’, i.e., take the mortgage to the new property, which is only possible if you have a portable mortgage, costing between £50 and £300. If you decide to repay your mortgage early, you’ll be charged an early repayment charge (ERC) of 1 to 5% of the total loan amount, or you could get a remortgage and buy a more expensive property. Remortgaging can cost you £1,000 to £3,500. And if you use a mortgage broker, remember that you must pay them.
The overall costs of selling a house in the UK would be incomplete without factoring in the cost of moving. If you hire a professional moving company, the fee depends on the size of the house, the distance between the two locations, the number of possessions you have, and whether you’re packing everything up yourself. Or, you can always take the DIY approach and organise the move yourself, but this will also accrue some costs. Costs for a moving company can range from £250 to £4,000, plus VAT.
When selling a house in the UK, you don’t need to get your property surveyed unless you live in Scotland—where it’s known as a Home Report—costing between £585 and £820. The buyer is responsible for this expense in the rest of the UK.
Capital Gains Tax
In some cases, sellers are liable for paying capital gains tax (CGT) if their property is inherited, a holiday property, business premise, portion of land, or buy-to-let. If they’re not selling their primary residence, they must pay CGT. So if you only own one home, you won’t need to pay these legal fees for selling a house imposed by the government due to a tax relief known as Private Residence Relief (PRR). But if you’re liable for CGT, it’s best to consult a professional to minimise the amount due.
House Improvement Costs
To make your house more presentable, you should make some improvements. But how much does it cost to sell a house in the UK after making such necessary adjustments? First, consider thoroughly cleaning your home. If you can’t manage to do this on your own, you can hire a cleaning service, which will cost (at most) about £150.
For repairs, you can do some minor DIY jobs yourself and hire professionals to take care of the more serious issues, costing up to £5,000. Painting the house can cost you about £50 to £1,000. And if you decide to redecorate, set apart a maximum amount of £2,000.
After these preparations and improvements, be prepared to answer the most common questions asked during a house viewing.
|DID YOU KNOW? The average solicitor fees for selling a house in the UK are £1,046 for an average-priced home valued at £251,000. But there are many types of houses in the UK, and, naturally, more expensive properties come with higher solicitor fees.|
|Finding an estate agent and setting a selling price are critical measures in house-selling.|
|The estate agent fees are the most significant expense when selling your house.|
|EPCs are mandatory documents for the sale of a property.|
|DIY jobs can lower moving and house improvement costs.|
The Total Cost of Selling a House in the UK
Considering all the costs of the house-selling process, what would the total cost of the sale be? The exact number is difficult to pinpoint because the following factors could heavily influence the price.
- Geographical location: Selling a London property costs more than selling a property in the countryside—the higher the selling price, the higher the expenses.
- Kind of agent: How much do estate agents charge to sell a house if you choose an online agent? You’ll pay significantly less than a high-street agent.
- Solicitor’s fee: Finding a solicitor offering a fixed fee would be more beneficial since such costs can skyrocket.
- Type of mortgage you have: Each mortgage incurs different costs. So the type you have can be vital in determining what you must pay, e.g., fixed-rate mortgages and tracker mortgages are very different from one another.
- Scope of repairs: If your home is in bad shape and needs a lot of repairs, you’ll need to pay a substantial amount.
So with all the variables added, the average cost of selling a house in the UK is approximately £5,723 for an average-priced home valued at £251,000. Considering all the factors affecting the sale cost, you can put your house on the market and start saving for your future house.
|DID YOU KNOW? The UK property market is a good place for sellers. Stats show that buyers pay 97% of the asking price—a substantial percentage considering the high property prices in recent years.|
What fees do you pay when selling a house in the UK? This is an essential question of the sales process that you need to grasp before listing your home. Before putting your house up for sale, we hope that you carefully consider our guide, which has explained each expense you might be liable for when selling your home.
House sellers are liable for paying various and considerable expenses when selling their homes.
Mortgage fees, solicitor’s fees, legal fees, and estate agent fees are all obligatory expenses when selling a house.
The maximum amount of time you can be held liable for your house after selling it is six years. But in some cases, an agreement can stipulate three years from the date a buyer has noticed a problem.
Many who ask ‘how much does it cost to sell a house?’ also ask about taxes. If you’re selling your primary residence, you don’t need to pay taxes. But if you’re selling inherited or buy-to-let property, you must pay capital gains tax.