How much does it cost to sell a house? When it comes to selling a house or a flat, there are more costs to consider when calculating the profit you will make than you may think. The amount your house sold for, the solicitor’s fees, the estate agent’s commission, your mortgage position, and whether you required any other services will all go into your overall selling costs.
| 🏠 How much does it cost to sell a house? | The average cost to sell a house in the UK is around £6,000 to sell a house, though this depends on the size and valuation of the house. |
| 💵 What are the main fees for selling a house? | The fees involved in selling a house include agency fees, mortgage fees, conveyancing fees, moving company fees, energy performance certification fees and valuation fees. |
| ❓Are there government incentives I can take advantage of when selling a house? | If you fall within certain criteria, you may not have to pay capital gains tax on the profits you make from selling your house. |
How much does it cost to sell a house?
What is the true cost of buying and selling a house? The average cost to sell a house in the UK is around £6,000 to sell a house, though this depends on the size and valuation of the house. The amount at which your home sold, the solicitor’s fees, the commission earned by the estate agent, the terms of your mortgage, and whether you required any other services will all affect your overall selling costs.
What fees are involved in selling a house?
What are the main fees for selling a house? The fees involved in selling a house include agency fees, mortgage fees, conveyancing fees, moving company fees, energy performance certification fees and valuation fees.
1. Estate agent fees for selling and calculation
When using an estate agency, you will typically pay agent fees for selling houses that will boil down to a commission for selling the house. Thus, a portion of the ultimate sale price will serve as the basis for the estate agent’s fee. Estate agents fees for selling a house normally range between 1% and 3% of the purchase price, but this fee is not due until after your home has sold.
Be sure to confirm this before choosing an estate agent. Many estate agencies will provide a “no sale, no fee” service, which means they won’t charge a commission if the transaction falls through.
Remember that using an estate agent is not necessary; if you’d prefer, you can sell your house privately or through an internet agent for the cheapest estate agents fees.
2. Mortgage charges
You will incur some additional costs if you’re selling a home that has a mortgage. Mortgage exit fees and early repayment penalties are the two primary mortgage expenses to take into account.
If you have paid off your mortgage, you will need to pay a mortgage exit fee to your lender in order to close it. You can also be responsible for paying an early repayment fee if you’ve paid off your mortgage early or if you’re leaving your mortgage before the set term expires, which can be anywhere from 1% to 5% of the loan. If you are both purchasing and selling a home and still owe money on your mortgage, you have two options: refinance to get a lower rate or transfer your current mortgage to the new home.
3. Conveyancing solicitor fees
Solicitor costs for selling a house are often overlooked. You must employ a conveyancer or solicitor to manage the legal aspects of the sale when selling a property. Average solicitors fees for selling a house could consist of obtaining formal Land Registry records, demonstrating your ownership of the home you are selling, title deeds copies, wire transfer fees, anti-money laundering checks, since both buyers and sellers must submit these checks to ensure that their money is coming from legitimate sources.
If you still owe money on a property, a mortgaged property supplement fee will usually be required to pay your lawyer to work with your mortgage lender to finalize the redemption of your mortgage. This is typically included in the legal fees for selling a house.
Selling a freehold will result in lower conveyancing costs because leasehold sales require a more intricate legal process. Finding out up front whether a solicitor offers a fixed cost conveyancing service is crucial.
4. Removal fees
You must reserve your removal firm once you’ve found a buyer for your home and set a completion date. Your property’s size, the distance traveled, and whether or not you need any additional services, such as packing or storage, will all affect the price of your house removals.
5. Energy performance certificate (EPC) fees
When selling a home, you are legally required to obtain an Energy Performance Certificate (EPC), which must be issued prior to your property going on the market.
Obtaining an EPC is essential since it will increase your chances of selling your property. The certificate will provide you with a precise picture of the energy consumption and expenditures associated with your house, enabling you to make any adjustments required to boost interest in your home.
6. Valuation fees
The valuation services help you to find the right price to sell a house. Usually, estate agents offer free valuations because they understand that this is an excellent opportunity to show you the property, promote their services, and gain your business.
How to prepare your home for sale
Before viewings, photos, and once more before the buyers walk in, you should make sure that your home is ready for viewing, here are a few tips to get your home ready to show.
1. Get your house professionally cleaned
Before scheduling any viewings or taking any photos, get your house professionally cleaned. Without a doubt, most buyers are looking for a home that feels clean, is free of visible flaws and ready to move into.
2. General house repairs
If you have a damp problem, it could be worth getting a quote to see how much it would cost to resolve this. If this is too much trouble, be sure to factor this into your sale price as this is something that will be flagged in a property survey.
If their survey identifies any repair work, buyers frequently try to lower the price. You’ll be ready if you prevent this by making any necessary repairs or at the very least plan for this to happen. Broken radiators or door handles are simple fixes that will improve the appearance of your home.
Cost of selling a house calculator UK
To calculate your net proceeds, deduct the sale price from the mortgage payoff, preparation expenses, agent commission, closing charges, and all other fees. Then, in order to calculate your genuine profit, you must perform the additional math step of deducting the home’s purchase price and any upgrades or improvements made to the property.
There are a number of different online tools you can use to estimate the total cost you will have to pay to sell your house.
How to calculate profit when selling a house?
To calculate how much you will profit from selling a house, deduct the sale price from the mortgage payoff, preparation expenses, agent commission, closing charges, and all other fees. Then, in order to calculate your genuine profit, you must perform the additional math step of deducting the home’s purchase price and any upgrades or improvements made to the property.
Investment tips after selling a house
It’s not always easy to decide how to use the profits from the sale of your house, there are many possibilities to choose from, but the best use of any profits you make depends on your individual needs.
Save it for a rainy day: Savings accounts have the advantage of being low-risk investments that provide you free access to your money whenever you need it. The disadvantage is that holding that money in a savings account too long runs the risk of it not increasing in value overall due to inflation. In the end, you still have access to your money, but you aren’t building up buying power over time. Individual Savings Accounts (ISAs) like a Stocks and Shares ISA are savings accounts are a good way of saving money in a way that is tax efficient, since you are allowed to pay a set allowance every year that is free from tax.
Boost your investment portfolio: Open an investment account and use the proceeds to invest in the stock market. Due to the higher potential return on investment, investing in stocks has advantages both now and in the future. The disadvantage is that higher losses could occur, such as in the event of a stock market decline or disaster. If you decide to take this path, a stockbroker or financial advisor can suggest the best solutions for you.
Re-invest it in real estate: Oftentimes the profits from a sale are used to invest in a mortgage, or serve as the down payment for another property. Buying a house as a rental property is another method to make money if you’re looking to invest in a property that won’t be your primary residence. There are pros and cons to both renting vs buying in terms of income generation and tax credits, but not everyone has the liquidity to be able to buy a second property. You can work on your financial planning with a financial advisor to learn how to save money for a house.
Incentives and taxes in the UK when selling a house
If you sell property that isn’t your primary residence and generate a profit, you may be required to pay a Capital Gains tax. But if you only own one house, and throughout the entire period you’ve owned it, you’ve lived there as your primary residence without renting out any spaces, you won’t have to pay capital gains tax on the profit.
Under this condition, you qualify for Private Residence Relief and will pay no taxes on whatever capital gains you make through the sale.
FAQs
What are the main fees for selling a house?
The fees involved in selling a house include agency fees, mortgage fees, conveyancing fees, moving company fees, energy performance certification fees and valuation fees.
What are the best things you can do to help the sale of your house?
Make sure that your house is in the best shape for presentation. Have it cleaned and renovated if necessary, since this will add to the perceived value of the house.
What government incentives are there when selling a house?
If you fall within certain criteria, you may be eligible for tax breaks on the profits you can from selling your house.
