Selling a house can be a stressful and expensive process, and it’s important to understand the costs involved before you put your home on the market. So, how much does it cost to sell a house in the UK? The answer is that it can vary depending on a number of factors, including the value of your property, the estate agent you choose, and the solicitor you use.
One of the main costs associated with selling a house is estate agent fees. Typically, estate agents charge between 0.75% and 3.5% of the sale price of your home, although some may offer a fixed rate. It’s important to shop around and compare fees from different agents to ensure you’re getting a good deal. Additionally, you’ll need to budget for solicitor fees, which can range from £800 to £1,800. Your solicitor will handle the legal aspects of the sale, such as transferring ownership of the property and dealing with any outstanding mortgages or loans.
Other costs to consider include home improvement expenses, such as repairs or upgrades to make your property more attractive to potential buyers. You may also need to pay for a home inspection and an Energy Performance Certificate (EPC), which is required by law. In summary, selling a house can be a complex and expensive process, but by understanding the costs involved and working with reputable professionals, you can minimise your expenses and maximise your profits.
Understanding the Basics of Selling a House
Selling a house can be a complicated process, and it’s important to have a good understanding of the basics before you begin. Here are some key things to keep in mind:
Costs of Selling a House
One of the most important things to consider when selling a house is the cost. There are several costs associated with selling a property, including:
- Estate agent fees: These fees are typically based on a percentage of the sale price of your home. The average fee for a sole agency service is 1.42% including VAT in the UK. However, the exact fee can vary depending on the estate agent you use and how well you negotiate.
- Conveyancing fees: These fees cover the legal work involved in selling your property and can range from £500 to £1,500 depending on the complexity of the sale.
- Energy Performance Certificate (EPC): An EPC is required by law and provides information on the energy efficiency of your property. The cost of an EPC typically ranges from £80 to £150 plus VAT.
- Removal costs: If you’re moving to a new property, you’ll need to consider the cost of removal services.
- Other potential costs: Depending on your circumstances, there may be other costs to consider, such as mortgage redemption fees, early repayment charges, or bridging loans.
Fees for Selling a House
When it comes to fees for selling a house, it’s important to understand that different estate agents have different pricing models. Some agents charge a fixed fee, while others charge a percentage of the sale price. It’s important to shop around and find an agent who offers a pricing model that works for you.
Cost of Selling a House UK
If you’re selling a house in the UK, it’s important to be aware of the costs involved. As we’ve mentioned, estate agent fees, conveyancing fees, and EPC costs are all factors to consider. It’s also worth noting that the cost of selling a house can vary depending on where you live in the UK.
In conclusion, selling a house can be a complex process, and it’s important to have a good understanding of the costs involved. By doing your research and working with a reputable estate agent, you can help ensure a smooth and successful sale.
Estate Agent Fees
When selling a house in the UK, estate agent fees can be a significant cost. The average estate agent fee in 2023 is typically 1.42% including VAT according to the Homeowners Alliance source. However, fees can vary depending on a number of factors, including the type of service you choose and the location of your property.
It is important to note that only the seller pays the estate agent’s fee, usually after the sale has completed. Some estate agents offer flat fees, while others charge a percentage of the sale price. You can also work with the estate agent to decide on marketing and other services to include in the cost.
If you opt for a multiple agency agreement, which involves using two or more agents to sell your property, typical fees can range from 3% to 3.6% including VAT source. It is worth noting that some estate agents offer a “no sale, no fee” service, which means you will not have to pay if the property does not sell.
When choosing an estate agent, it is important to shop around and compare fees and services. You should also consider the reputation and experience of the agent, as well as their track record in selling properties similar to yours. It is also worth negotiating the fee with the agent to try and get the best deal possible.
In summary, estate agent fees are a necessary cost when selling a house in the UK. The average fee is typically 1.42% including VAT, but can vary depending on the type of service you choose and the location of your property. It is important to shop around, compare fees and services, and negotiate with the agent to get the best deal possible.
Conveyancing and Mortgage Fees
When selling a house, you will likely need to pay for conveyancing and mortgage fees. Conveyancing fees cover the legal work required to transfer ownership of the property from you to the buyer. On the other hand, mortgage fees are charged by lenders for arranging and administering the mortgage.
Conveyancing fees can vary depending on the complexity of the sale and the value of the property. According to Home Owners Alliance, the average conveyancing fees for selling a house are around £610-£950, while conveyancing fees for a leasehold property are usually £300 more. It’s important to note that these fees do not include disbursements, which are additional costs such as search fees and Land Registry fees.
Mortgage fees, on the other hand, can include arrangement fees, valuation fees, and early repayment fees. According to Which?, the average mortgage fee for a fixed-rate mortgage is around £1,000-£1,500. However, it’s important to shop around and compare different lenders as fees can vary widely.
One important thing to note is that if you have an existing mortgage, you may need to pay an early repayment fee if you pay off your mortgage before the end of the term. This fee can be quite substantial, so it’s important to check with your lender before making any decisions.
In summary, when selling a house, you should budget for conveyancing and mortgage fees. Conveyancing fees can vary but usually range from £610-£950, while mortgage fees can range from £1,000-£1,500. It’s important to shop around and compare different lenders to find the best deal. Additionally, if you have an existing mortgage, you should check for any early repayment fees.
Energy Performance Certificate and Home Report
When selling a house in the UK, you will need to obtain an Energy Performance Certificate (EPC) and a Home Report if you are selling in Scotland. These documents provide important information about the energy efficiency of your property and its overall condition, which can help potential buyers make informed decisions.
Energy Performance Certificate
An EPC is a legal requirement for anyone selling a property in the UK. It provides information about the energy efficiency of your home and gives it a rating from A (most efficient) to G (least efficient). The certificate will also include recommendations on how to improve the energy efficiency of your property, which can help you save money on your energy bills.
The cost of an EPC varies depending on the size and location of your property, but typically ranges from £60 to £120. You can find a qualified energy assessor to carry out the assessment and issue the certificate by searching online or contacting your local council.
If you are selling a property in Scotland, you will also need to provide a Home Report to potential buyers. This report includes an EPC, a survey of the property’s condition, and a property questionnaire completed by the seller.
The cost of a Home Report varies depending on the size and value of the property, but typically ranges from £350 to £1,000. The report is valid for 12 weeks from the date it is issued, so it is important to make sure it is up-to-date when you put your property on the market.
In summary, obtaining an EPC and a Home Report is a necessary part of selling a house in the UK. While it may add some additional costs to the process, it can provide valuable information to potential buyers and help you sell your property more quickly.
Costs of Preparing Your Home for Sale
Before putting your home on the market, you’ll need to make sure it’s in the best possible condition to attract potential buyers. This can involve some costs, but it can also help you sell your home more quickly and for a higher price.
Here are some of the costs you may need to consider when preparing your home for sale:
Cleaning and Repairs
Cleaning your home from top to bottom is essential before putting it on the market. You may also need to make some repairs, such as fixing leaky faucets or replacing damaged tiles. The cost of cleaning and repairs will depend on the size of your home and the extent of the work that needs to be done.
Staging involves arranging furniture and decor to make your home look its best. This can help potential buyers envision themselves living in your home. You may need to hire a professional stager, which can cost anywhere from a few hundred to several thousand pounds.
Photography and Videography
Good quality photos and videos are crucial for attracting potential buyers online. You may need to hire a professional photographer or videographer to capture your home’s best features. The cost will depend on the photographer’s experience and the number of photos or videos you need.
You’ll need to hire a conveyancer or solicitor to handle the legal aspects of selling your home. The cost will depend on the solicitor’s fees and the complexity of the sale.
Estate Agent Fees
When you sell your home, you’ll typically need to pay estate agent fees. The exact fee will vary between companies, as well as location and the value of your property. While some may offer a fixed rate, it’s more common for estate agents to take a percentage of the sale price.
Overall, the costs of preparing your home for sale can add up quickly. However, by investing in your home’s appearance and functionality, you can increase your chances of a successful sale.
Removal Costs and Auction Fees
When selling a house, it’s important to consider the costs associated with the process. Two major costs to keep in mind are removal costs and auction fees.
Moving house can be a stressful and expensive process. The cost of removals can vary depending on the distance you are moving, the amount of furniture you have, and the level of service you require. As a rough guide, moving a one-bedroom flat across the country could cost around £800 rising to £2,000 for a four-bedroom property. 1
To get an accurate quote for your move, it’s best to contact a few different removal companies and ask for a quote. Be sure to ask about any additional costs, such as packing materials or insurance.
Selling your property at an auction can be a quick and easy way to sell your home. However, it’s important to be aware of the fees associated with the process. There are typically three costs to consider when selling a property at auction: commission, entry fees, and advertising costs.
- Commission: The auctioneer’s commission is typically around 2% + VAT of the final sale price and is only paid when the property successfully sells. 2
- Entry Fees: Some auction houses may charge an entry fee to cover the cost of advertising and cataloguing your property. This fee can vary depending on the auction house and the type of property you are selling.
- Advertising Costs: To ensure your property reaches as many potential buyers as possible, it’s important to advertise it effectively. This can include listing it on the auction house’s website, in local newspapers, and on property portals such as Rightmove and Zoopla. The cost of advertising can vary depending on the level of exposure you require.
It’s important to be aware of these costs when considering whether to sell your property at auction. Be sure to discuss them with the auction house before agreeing to sell your property.
Taxes and Selling a Second Home
If you are selling a second home, you may be subject to Capital Gains Tax (CGT). CGT is a tax on the profit you make when you sell an asset, such as a property. You generally won’t need to pay CGT when selling your main home, but you will usually face a CGT bill when selling a buy-to-let property or second home.
The amount of CGT you pay will depend on a number of factors, including the profit you make on the sale, your income, and any other capital gains you have made in the tax year. For the 2023-2024 tax year, the CGT allowance is £12,700. Couples who jointly own assets can combine this allowance, potentially allowing a gain of £25,400. This allowance cannot be carried forward, so if you don’t use it, you will lose it.
If you are selling a property belonging to the estate of someone who has died, you will need to include the gain on your tax return if the sale takes place within two years of the date of death. You may be able to claim relief from CGT if you have lived in the property as your main residence at some point during your ownership, or if you have let the property out and have claimed relief for rental income.
In addition to CGT, you may also be liable for other taxes when selling a second home. For example, if you have owned the property for a long time and the value has increased significantly, you may be subject to Inheritance Tax (IHT) if your estate is worth more than the IHT threshold. You may also be liable for Stamp Duty Land Tax (SDLT) if you are buying a new property to replace the one you are selling.
It is important to seek professional advice if you are unsure about your tax obligations when selling a second home. An accountant or tax advisor can help you understand the rules and regulations, and ensure that you are compliant with the law.
Porting vs Taking Out a New Mortgage
When you’re selling your house and buying a new one, you’ll need to decide whether to port your existing mortgage or take out a new one. Porting a mortgage means transferring your existing mortgage to your new property, while taking out a new mortgage means applying for a completely new mortgage.
Porting a Mortgage
Porting a mortgage can be a good option if you have a good deal on your current mortgage that you want to keep. It can also save you money on early repayment charges and other fees that you would have to pay if you were to switch to a new mortgage. However, porting a mortgage isn’t always straightforward and can come with some downsides.
One downside of porting a mortgage is that you may not be able to borrow as much as you need for your new property. This is because your lender will need to assess your affordability based on your current income and outgoings, which may have changed since you first took out your mortgage. Additionally, if you’re moving to a more expensive property, you may need to borrow more than your current mortgage allows, which means you’ll need to top up your mortgage with a new loan.
Another downside of porting a mortgage is that you may not be able to take advantage of better mortgage deals that are available on the market. This is because your lender may not offer the same rates and terms on your new mortgage as they did on your old one. You may also miss out on introductory offers and cashback deals that are only available to new mortgage customers.
Taking Out a New Mortgage
Taking out a new mortgage can be a good option if you want to borrow more than your current mortgage allows or if you want to take advantage of better mortgage deals that are available on the market. It can also be a good option if you want to change the type of mortgage you have, such as switching from a variable rate to a fixed rate.
One advantage of taking out a new mortgage is that you can shop around for the best deals on the market. This means you can compare rates and terms from different lenders and choose the one that best suits your needs. You may also be able to take advantage of introductory offers and cashback deals that are only available to new mortgage customers.
However, taking out a new mortgage can also come with some downsides. You’ll need to pay early repayment charges and other fees on your existing mortgage, which can be expensive. You’ll also need to go through the application process again, which can be time-consuming and stressful.
Overall, whether you should port your mortgage or take out a new one depends on your individual circumstances. It’s important to weigh up the pros and cons of each option and speak to a mortgage advisor to help you make the right decision.
Mortgage Exit Fee
When you sell your house, you may need to pay a mortgage exit fee to your lender. This is a fee for releasing your title deeds so that you can switch or end your mortgage. The amount of the fee can vary from lender to lender and can range from £0 to £300. Some lenders may also charge what they refer to as ‘early discharge’ or ‘early termination fees’.
It’s important to carefully review your mortgage agreement and consult with your lender to understand the specific exit fees that apply to your situation. Some lenders may charge a percentage of the outstanding mortgage balance, while others may charge a flat fee.
If you’re considering selling your house before the end of your mortgage term, you’ll want to factor in the cost of the exit fee when calculating your selling expenses. Keep in mind that paying off your mortgage early may also result in additional fees, such as early repayment charges.
Before making any decisions, it’s important to weigh the costs and benefits of selling your house and ending your mortgage early. You may want to consult with a financial advisor or mortgage broker to help you make an informed decision.
Overall, mortgage exit fees can add to the cost of selling your house, so it’s important to understand them and factor them into your budget.
How to Calculate Profit When Selling a House
Calculating the profit you will make when selling a house can be a bit tricky, as there are many factors that can affect the final amount you receive. However, you can use the following steps to get a rough estimate of your potential profit:
- Determine the sale price of your house: This is the amount you expect to receive from the buyer. You can get an idea of the sale price by researching similar properties in your area or by consulting with a real estate agent.
- Subtract the selling costs: Selling a house incurs various costs such as estate agent fees, conveyancing fees, and marketing expenses. You can use a house selling calculator like the one offered by Bowfin Property to get an estimate of these costs.
- Deduct the remaining mortgage balance: If you still have a mortgage on your property, you will need to pay off the remaining balance before you can receive any profit. You can find out the remaining balance by contacting your mortgage lender.
- Calculate the profit: Once you have subtracted the selling costs and the remaining mortgage balance from the sale price, you will have an estimate of your potential profit.
It’s important to keep in mind that the above steps are just a rough estimate, and the actual profit you make may be different due to various factors such as the condition of your property, the demand in your area, and the state of the housing market.
In addition to the above steps, you should also consider any taxes or incentives that may affect your profit. For example, if you have owned the property for more than two years, you may be eligible for capital gains tax relief. On the other hand, if you sell your property at a loss, you may be able to claim a tax deduction.
By following the above steps and considering all the relevant factors, you can get a better idea of how much profit you can expect to make when selling your house.
Cutting Costs with an Online Estate Agent
If you’re looking to save money when selling your house, using an online estate agent could be a great option. Online estate agents typically offer a fixed fee, which can be significantly lower than the percentage-based commission charged by traditional high street estate agents.
By using an online estate agent, you can save money on the commission fees, which can be a significant amount of money. For example, if you sell your house for £275,000, you could save around £3,900 by using an online estate agent with a fixed fee of £1,000, instead of a high street estate agent charging 1.42% commission.
However, it’s important to consider that using an online estate agent may not be suitable for everyone. If you’re not confident in handling the sale of your house yourself, or if you need more support throughout the process, a high street estate agent may be a better option for you.
When choosing an online estate agent, it’s important to research and compare different options to find the best one for you. Look for an agent that offers a comprehensive service, including professional photography, floor plans, and advertising on major property portals.
You should also consider the level of customer support provided by the agent. Look for an agent that offers a dedicated account manager or customer support team to help you throughout the process.
Overall, using an online estate agent can be a great way to save money when selling your house. However, it’s important to do your research and choose an agent that offers the right level of support and service for your needs.
Frequently Asked Questions
What are the typical solicitor fees for selling a house in the UK?
When selling a house in the UK, you will need to hire a solicitor to handle the legal aspects of the sale. The typical solicitor fees for selling a house in the UK can vary depending on the solicitor you choose and the complexity of the sale. However, you can expect to pay anywhere between £500 and £1,500 for a solicitor’s services.
What are the cheapest house selling fees available?
If you are looking for the cheapest house selling fees available, you may want to consider using an online estate agent. Online estate agents typically offer lower fees than traditional high street estate agents, and some may even offer a fixed fee service. However, it is important to do your research and make sure you choose a reputable online estate agent.
How much are the legal fees to sell a house?
The legal fees to sell a house in the UK can vary depending on the solicitor you choose and the complexity of the sale. In addition to the solicitor’s fees, you may also need to pay for other legal costs such as searches and disbursements. You can expect to pay anywhere between £500 and £1,500 for legal fees when selling a house.
What is the best price to sell a house for?
Determining the best price to sell a house for can be a complex process that involves a number of factors, including the current market conditions, the location of the property, and the condition of the property. It is important to work with an experienced estate agent who can help you determine the best price to sell your house for based on these factors.
What do I need to pay when selling a house?
When selling a house in the UK, there are a number of costs that you will need to budget for. These can include estate agent fees, solicitor’s fees, conveyancing fees, removal costs, and more. It is important to do your research and make sure you have a clear understanding of all the costs involved in selling a house.
What are the estate agent selling fees?
Estate agent selling fees in the UK can vary depending on the estate agent you choose and the type of service you require. High street estate agents typically charge a percentage of the sale price, which can range from 0.75% to 3%. Online estate agents may offer fixed fee services or lower commission rates. It is important to do your research and choose an estate agent that offers the best value for your money.