What is the cost of selling a house in 2022? How much money will you need to save to cover all the costs associated with selling your home?
The average cost of selling a home in 2022 is around £5800, based on the average UK house price of £268,349.
These are questions that many homeowners will be asking themselves when considering selling. This article will discuss all the costs involved in selling a house in the UK and provide tips on saving money along the way!
What are the Costs Involved in Selling a House in the UK?
When it comes to selling a house, there are several costs that homeowners need to be aware of. The most obvious cost is the sale price of your home. However, there are many other expenses involved in the process, including:
Want to know more about the fees? Click on the relevant link to find out more or continue reading to overview all costs.
In addition to these costs, homeowners may also need to pay for repairs or renovations before selling their homes. It is important to budget for these expenses, as they can add up quickly!
How can you Save Money When Selling Your Home?
There are several ways homeowners can save money when selling their homes. Here are some tips:
- Use an online estate agent - Online estate agents charge significantly lower fees than traditional estate agents. But make sure you always get 3-4 estate agents out to ensure your home is put up for the right price-related
Related Article: Best Online Estate Agents.
- Sell your home yourself - This may require some DIY skills, but it can save you a lot of money in agent fees.
- Renovate your home yourself - If you have the time and skills, renovating your home yourself can be a cost-effective way to increase its value and appeal to more prospective buyers.
- Negotiate with estate agents - Don't be afraid to negotiate with estate agents over their fees. Many will be happy to lower their rates if they know they compete for your business.
- Check for hidden costs - Make sure you are aware of all the costs involved in selling a house and don't be afraid to ask your solicitor or estate agent for clarification if needed.
By following these tips, homeowners can save money on some of the most common costs of selling a home! For more advice on saving money when selling your home, read this article on How to save money on estate agent fees.
Estate Agent Fees
Estate agent fees can be a costly part of selling a home. The good news is nowadays. There are many options available to you when selling your home.
Related Article: How to Choose a Estate Agent
Traditional Estate Agent
High street estate agents fees:
The most common type of estate agent is the high street agent, who will charge a commission fee of around 0.75-2.5% of the sale price. So for a home that sells for £100,000, you can expect to pay between £750 and £2500 in commission fees.
Online & Hybrid Estate Agents
With the growth of online estate agents, homeowners now choose between high street and online agents. Online agents typically charge much lower fees than high street agents. They typically charge a set fee.
For example, Yopa charges a £999 fee to list your home on top sites like Rightmove, Zoopla and the market.
Whichever option you choose, it is important to shop around and compare fees before signing any contracts. Your ultimate goal is the get the most for your home and pay the lowest fees meaning you shouldn't always opt for the cheapest agent if they don't have the experience or knowledge they may undervalue your home.
Featured Online Estate Agents to get a quick valuation
After a valuation, the below online estate agents have excellent Trust Pilot ratings:
Yopa is a fantastic online estate agent that provides all of the services you'd expect from an online or conventional estate agent. They've been operating for several years and are one of the most well-known players in the business.
Good to know:
- The fixed fee starts from £999, which is everything you need to get your property on the market.
- Option to pay later and no sale, no fee packages are also available.
- Find local offices with a dedicated local estate agent through their website; Yopa has found a good balance between online pricing with local property experts to help you with your sale.
- Rated as Excellent by Trust Pilot reviews, and Yopa has also received external awards.
- Yopa boost that they can sell your house 25 days faster than the average estate agent.
- Virtual viewings available
Strike is a rapidly expanding online estate agent. They are well-liked since they provide a no-fee basis and profit by offering optional services if you take them. They're a fantastic choice for homeowners who wish to do as much of the selling process as possible but need assistance listing on sites like Rightmove or Zoopla.
Good to Know:
- Starts from free
- It is perfect for people who feel confident selling their own home but need an estate agent to get it on sites like Rightmove and Zoopla.
- Optional packages include marketing boosts (£499) and hoasted viewings (£699)
Estate Agent Tips to Save Money
Solicitor Fees & Conveyancing Fees
Solicitor fees are another common cost when selling a home. Solicitors typically charge around £500-£1000 for their services, but this can vary depending on the firm you choose and the complexity of your sale.
Conveyancing is the process of transferring property from one owner to another. Conveyancers will handle all the legal paperwork and ensure the sale goes through smoothly. Again, it is important to shop around and compare prices before choosing a solicitor.
Conveyancing Disbursement Fees
Cost of conveyancing disbursements: £46
Conveyancing disbursements are charges your conveyancer pays for third-party services on your behalf. These are in addition to their legal fee, and there are far fewer disbursements when you sell a property than when you buy.
Land Registry Documents - £6
Obtaining official Land Registry documents will verify that you are the legal owner of the property you're selling. This will be a copy of the title deeds.
Bank Transfer Fee - £40
A bank transfer fee is levied when your conveyancer has to move money. This will be added to the price, whether to pay off your mortgage or settle the last sale funds into your account. The average cost, which includes VAT, can range from £25 to £45.
Conveyancing Tips To Save Money
- Make sure you compare and get a few quotes. You could save hundreds by just shopping around.
- Choose your Solicitor with care. Please make sure they are CLC, SRA, LSS, or LSNI-licensed.
- Check reviews. You don't want your solicitor to hold up your home sale. Please make sure they are quick and act with a customer-first mindset.
- Be suspicious of any quotations that are too cheap or too costly. Don't be scared to ask for a breakdown of a quote.
Energy Performance Certificate (EPC)
If your home is under ten years old, you can save the cost of this. To check if your home has a valid EPC certificate, head across to gov website energy certificate checker.
An energy performance certificate is required by law when you sell a property. It shows how energy efficient your home is and what improvements could make it more eco-friendly. The average cost of an EPC is £85, but this can vary depending on the size and type of property.
Obtaining an EPC is critical since it will assist you in increasing the likelihood of selling your home. The certificate will provide you with a clear indication of your property's energy consumption and expenses, allowing you to make any necessary modifications to raise interest in your house.
You should ring your mortgage provider if you are planning to sell your home as you could be liable for an early repayment charge.
If you have a mortgage on your home, you will need to pay off the outstanding amount when you sell. This can be costly, as many mortgages come with redemption penalties of around £2000-£5000, but this could be more depending on your current length or mortgage and the amount owed.
It is important to check with your mortgage provider to see if you are liable for redemption penalties and, if so, how much they will be. You may be able to negotiate a lower penalty with your lender if you are willing to pay off the loan early.
Costs of Porting a Mortgage
When you convert your mortgage, it moves from the house you're selling to the one you're buying. When you convert a mortgage, you'll have to repay your old loan on the sale of your home while continuing to pay off your new loan with the same lender.
Borrowing the same - Typically, a mortgage valuation survey will be required. Some lenders provide it for free, while others may charge up to £450 and more.
Increasing borrowing - According to The Advisory, a fee ranging from £100 to £500 might be charged.
Decreasing borrowing - According to The Advisory, you may be charged an early payment f is typically 1-5% of the different loan amounts.
Removal costs can also be a significant expense when selling your home. The average cost of hiring a removal company is around £500-£1000, but this can vary depending on the size and distance of your move.
It is important to budget for these costs and starts planning early to ensure you get the best deal possible.
Ways to save on removal costs include
Although removal costs can be expensive, it is possible to save money.
- Booking well in advance
- Hiring a smaller van
- Sharing the cost of a removal company with friends or family members
A home survey is not always necessary when selling a home, but it can be helpful to have one done. A survey will give you an idea of the property's condition and identify any potential problems that need to be fixed before sale.
Survey fees typically cost around £300-£600, but this varies depending on the size and type of survey requested.
If the property you are selling is your main home, you will not have to pay stamp duty. However, if you sell a second home or investment property, you must pay Stamp Duty Land Tax (SDLT).
The amount of SDLT you will have to pay depends on the property's purchase price. You can find out more about SDLT and how to calculate it on the HMRC website.
Capital Gains Tax
If you have made a profit on your home sale, you will need to pay Capital Gains Tax (CGT). You will have to pay the amount of CGT depending on how much profit you make and your income tax band.
If you sell a home in the United Kingdom, you must pay Capital Gains Tax (CGT) if it is:
- Inherited property
- A holiday property
- Business premises
Preparing for House Sale
Of course, the best way to reduce costs related to selling your home is to increase the amount you get for your home. You want to create a bidding war, where buyers compete to get your home and may be willing to pay over the asking price.
There are a few things you can do to increase the value of your home and attract buyers.
- Renovate or update your home to make it more appealing by painting and decorating.
- Make sure the exterior is in good condition and well-maintained
- Declutter your home and remove personal items that may be off-putting to buyers
- consider using a professional home stager or declutterer to help you prepare your home for sale.
- Ensure your home is cleaned and doesn't have any odours that could be off-putting.
Cost to Sell a House in 2022: Bottom Line
When selling your home, there are several costs to consider. With the average UK house price only getting higher, this means the cost to sell a house will increase too.
Borrowing the same amount on your new mortgage, survey fees, stamp duty, and capital gains tax can all add up quickly. Before considering selling a house, check if there are any early repayment charges on your mortgage fees.
If you focused on two areas to save money, it would be estate agent fees and conveyancing fees. Make sure if you are planning on selling a house that you:
- shop around to find the best deal.
- Check what's included if you have been quoted a fixed fee.
- Legal fees can be costly, so check they have included everything and check reviews to make sure you are shopping with a reputable firm.