It may seem counterintuitive, but selling a house is an expensive business. From estate agent fees to EPCs, learn about some of the key costs you’ll need to budget for when selling your home.
Estate agent fees for selling
Although it is possible to sell your house privately, most people choose to use an estate agent. Traditional high street agents typically charge a percentage of the selling price, plus VAT. It is a good idea to compare at least three local agents before making a decision. Typically, the fee is a percentage of the selling price, plus VAT. You can estimate this based on the guide price of your property.
Remember that choosing the right estate agent can make the difference between receiving an offer that reflects the true value of your property and not selling it at all. Robert Holmes & Co has been successfully marketing some of the finest residential property in south-west London and Surrey to buyers from home and abroad since 1987.
If you have an existing mortgage, you can usually transfer it to a new property. This is relatively simple if you plan to move to a similarly priced or cheaper property but if you need to borrow more money porting your mortgage will be more difficult and costly.
Moving house is a is a good time to see if you can benefit from re-mortgaging. If you have come to the end of your existing mortgage deal you may find you can secure a lower interest rate, either from your existing lender or a new one, and save yourself some money. There are costs associated with re-mortgaging so you will need to weigh these up against your potential savings.
It is worth seeking professional advice to ensure you get the best deal and make the right decision.
Conveyancing solicitor fees
You will need to hire a solicitor or licensed conveyancer to deal with the legal aspects of selling your property. Some will charge you a fee based on a percentage of the value of your property, while others will charge a flat/fixed fee. As a rough guide, you can expect to pay between £1000 and £3000, depending on how complex the transaction is.
If you are buying another property at the same time, it is advisable to employ the same conveyancer to manage the legal aspects of both buying and selling.
Robert Holmes & Co can offer recommendations if required.
Another cost to include in your budget is removal fees. If you have an entire house of furniture and valuable items to move, it makes sense to leave the task to a professional, fully-insured removal company.
Removal fees can vary hugely depending on the service and how much you have to move. Fees can range from £800 to more than £2,000. Make sure you get quotes from several companies before choosing one, ask family and friends for recommendations and use review sites.
Energy performance certificate (EPC)
The property seller must provide prospective buyers with an EPC certificate so that buyers are aware of the property’s energy rating and performance. You will need to purchase a new EPC certificate if the current one is out of date (an EPC is valid for 10 years). Robert Holmes & Co can arrange for a qualified assessor to produce an EPC for your Wimbledon property. The costs can vary, but usually range between £100 and £150 (excluding VAT).
If the property you are selling is a second home, buy-to-let investment or forms part of an inheritance, then you may need to pay Capital Gains Tax (GCT). For more information read our article ‘Do you pay capital gains tax on selling your house in the UK?’.
Vendors do not pay stamp duty land tax; this tax is payable by the buyer.
Preparing your home for sale
Presenting your property in its best light to potential buyers can be crucial to a successful sale.
We advise carrying out any minor repairs the property requires, ensuring it is in good decorative order and trying to clear unwanted furniture and other possessions to make rooms appear larger.
How to calculate profit when selling a house?
Calculating the proceeds of your sale is slightly more complicated than subtracting the original purchase house price from the price of sale. Calculate profit by using the following formula:
Profit = Sale Price – (Mortgage Balance + Cost of Selling)
You should also subtract any money you spend on significant home improvements as well as the costs of purchasing the property.
If you are planning to sell a property in Wimbledon, then Robert Holmes can help you achieve the best possible sale price, contact us today.