Cost of Selling a House

If you’re considering selling a house and moving on to pastures new, there are a number of costs you will need to be aware of. Below, you will find our complete guide to the costs of selling your home, including fees you might not have expected.

 

What to consider before I sell my house

If you’re still within your existing mortgage term, you should check what fees you might be liable for if you move. This will help you budget ahead.

Secondly, it’s a good idea to ensure misplaced paperwork doesn’t delay the selling process, and locate all the documentation you will need to sell your home before you get the ball rolling. Some examples of the types of documentation you will need are:

  • ID and proof of address
  • Location of property Title Deeds
  • Guarantees and Warranties for any major home improvements you have carried out

What are the costs of selling a house?

  • Mortgage exit fees and early repayment charges

If you’re selling a house before the mortgage is paid and you have a fixed, tracker or variable rate mortgage, then ‘porting’ - as long as your mortgage provider provides this option - allows you to take your existing mortgage product with you.

Alternatively, you can switch to a new loan, but you could face fees for doing so. These fees may come in the form of:

Early repayment charges: An early repayment charge is a penalty that gets applied if you repay or overpay your mortgage over and above the allowance permitted when selling a house during a fixed term mortgage deal. These are typically 1-5% of the outstanding debt, depending on how long you have left of your introductory deal.

Exit fees: Otherwise known as a deeds release/production , most people are required to pay an exit fee when they pay off their mortgage. This usually costs between £50 and £300. Your original mortgage contract will include the cost of exit fees.

  • Home improvements

Making improvements on your home is an optional cost when selling your house. However, a fresh lick of paint and a few decorative accessories could help entice buyers.

Essential repairs such as repairing a roof, fixing a heating system, structural concerns and other issues which may prevent buyers getting a mortgage on your home, should also be addressed.

The cost of making improvements on your home will vary significantly depending on the condition your home is in and to what extent you intend on updating it.

  • Valuations

A valuation will give you an objective indicator of how much your home is worth. This is usually done by an estate agent at no cost, but there may be a small admin fee of up to £100, particularly if you live in a very remote location.

Another way of gauging how much your home is worth is to look at other houses that are for sale in your area, or checking The Land Registry.

  • Estate agent fees and private selling

Though some people choose to sell their home privately, most choose to use the services of an estate agent. Typically, an estate agent will charge the seller a percentage of the agreed sale price plus VAT.

This averages out at 0.75% to 3% of the final sale price. The average UK house seller can expect to pay £2,000 in commission to an estate agent. This usually includes advertising costs, online listings and photography.

  • Conveyancing and solicitor fees

This is a necessary step in both the buying and selling of a property. You will need a conveyancing solicitor or conveyancer to help with the settlement and title transfer process. A conveyancing solicitors’ fees for selling a house can cost between £850 - £1,500.

  • Energy performance Certificates (EPC)

An Energy Performance Certificate (EPC) can cost anywhere between £35 and £120 and tells you how energy efficient your home is. Crucially, it’s an indicator to buyers of the changes they can make to reduce their bills, if they were to move in.

  • Removals

Removal companies usually charge an hourly rate, which can average out at £50-£60 per hour. However, if you’re moving further away, you may have to pay more than this.

What are some unexpected costs of selling a house

  • House removal insurance

Moving home can be stressful enough without having to worry about the safety of your possessions. Many home insurance policies cover your possessions during removal as standard, but often this is only if you’re using a professional service to transport them.

Contact your home contents insurer well in advance of the move to let them know your plans and make sure your possessions are covered.

  • Post redirection costs

The cost of this service can vary depending on how long you want to redirect post for. latest rates can be found on the Royal Mail Website.

 

If you’re still unsure about the buying and selling process, why not pop into a Newcastle Building Society branch today?

Whether you’re a new customer or an existing customer, our qualified team of mortgage advisors are always on hand to help and answer any questions you may have. Book an appointment in branch today.