Cost Of Selling A House — Guide
The cost of selling a house usually comes with a hefty price tag. Working out exactly what it will cost isn’t a simple question to answer though. It depends on many factors like whether you choose a traditional or online estate agent, the price of your house, your solicitor costs, and whether you have a mortgage or not.
According to the Advisory, the basic cost of selling a house worth £225,000 (freehold, no mortgage, in England) is £4,621 .
But what is that cost made up of? Are there any extras to consider? Are there cheaper selling options available? We answer your most common questions below.
How much does it cost to sell your home?
We’ve broken the costs of a selling house in the UK down into basic (essential) costs and additional costs below. Bear in mind that these are averages and actual figures will depend on the estate agent you choose, the price of your home, what part of the UK you live in, and the services that you need.
Basic costs of selling a home
- Traditional (bricks and mortar) estate agent fees — 0.75% to 3% + VAT (of sale price).
- Estate agent fees include the marketing of your property, finding a buyer, and managing the selling process so that you don’t have to. They charge high fees but can be worth it if you manage to find a good one. And that means an agent with exceptional local knowledge, great customer service, and a high success rate for achieving the asking price.
- Estate agent fees include the marketing of your property, finding a buyer, and managing the selling process so that you don’t have to. They charge high fees but can be worth it if you manage to find a good one. And that means an agent with exceptional local knowledge, great customer service, and a high success rate for achieving the asking price.
- EPC certificate — £35 to £150 + VAT
- An EPC certificate is a legal requirement when selling a home in the UK so overlook it at your peril. The legal document outlines the energy efficiency of your home and rates it from A to G with ‘A’ being the most efficient and ‘G’ being the least efficient. Costs vary depending on where you get your certificate from: you can go directly to one of the providers or ask your estate agent to provide one.
- An EPC certificate is a legal requirement when selling a home in the UK so overlook it at your peril. The legal document outlines the energy efficiency of your home and rates it from A to G with ‘A’ being the most efficient and ‘G’ being the least efficient. Costs vary depending on where you get your certificate from: you can go directly to one of the providers or ask your estate agent to provide one.
- Conveyancing/ Solicitors fees — £550 to £1,000 (inc. VAT)
- Unless you’re a legal professional and know what you’re doing, then you’ll need a conveyancer to manage the legal side of things for you. Like estate agents, solicitors’ fees vary enormously (with service levels not always linked to the cost). Some solicitors work on a fixed fee, others work on a percentage of the cost of your home. The exact cost will depend on whether you have a mortgage and if the property is freehold or leasehold. If you’re buying at the same time, then it’s often a good idea to use the same solicitor as you should get a better price overall.
- Unless you’re a legal professional and know what you’re doing, then you’ll need a conveyancer to manage the legal side of things for you. Like estate agents, solicitors’ fees vary enormously (with service levels not always linked to the cost). Some solicitors work on a fixed fee, others work on a percentage of the cost of your home. The exact cost will depend on whether you have a mortgage and if the property is freehold or leasehold. If you’re buying at the same time, then it’s often a good idea to use the same solicitor as you should get a better price overall.
- Removal costs — £250 – £4,000 + VAT
- Removal costs are pretty much always needed, whether you’re a first-time buyer leaving the sanctuary of your parents home or a frequent mover. Costs depend on how much ‘stuff’ you need to move, the distance from A to B, whether you’ll ‘box up’ yourself, and if you’ll need storage. Even if you go the DIY route, you’ll (probably) still need to hire a van, pay for fuel, take out ‘goods in transit’ insurance, and buy (or find) suitable packing material.
- Removal costs are pretty much always needed, whether you’re a first-time buyer leaving the sanctuary of your parents home or a frequent mover. Costs depend on how much ‘stuff’ you need to move, the distance from A to B, whether you’ll ‘box up’ yourself, and if you’ll need storage. Even if you go the DIY route, you’ll (probably) still need to hire a van, pay for fuel, take out ‘goods in transit’ insurance, and buy (or find) suitable packing material.
Potential extra costs for selling a home
- Preparing a house to sell — open-ended dependent on what work needs to be done.
- If your house is falling down then you’ll need to spend more than if you’ve kept on top of its upkeep over the years. Buyers need to be inspired by the space and visualise themselves living there so that you achieve the price that you want. Most people don’t want the hassle of having to take on work themselves, so it’s worth the pain if you want the extra financial gain. A deep clean, and a fresh lick of paint can make all the difference.
- If your house is falling down then you’ll need to spend more than if you’ve kept on top of its upkeep over the years. Buyers need to be inspired by the space and visualise themselves living there so that you achieve the price that you want. Most people don’t want the hassle of having to take on work themselves, so it’s worth the pain if you want the extra financial gain. A deep clean, and a fresh lick of paint can make all the difference.
What if I don’t want the faff of getting my house ‘ready to sell’?
At the right price, anything will sell, so be realistic if you’re leaving the work to the buyer rather than taking it on yourself. An option to look at if you’re in this position are quick sale companies or investors as it’s their job to turn unloved houses into palaces to sell on at a profit.
- Mortgage exit fee — £50 – £300
- This is a charge from your lender for closing the file on your mortgage when your balance is cleared. It’s not charged by all lenders, just some, so make sure you do your research to avoid any nasty shocks.
- This is a charge from your lender for closing the file on your mortgage when your balance is cleared. It’s not charged by all lenders, just some, so make sure you do your research to avoid any nasty shocks.
- Early mortgage repayment charge — 1-5% of loan amount
- Unfortunately, lenders tend to penalise you if you leave your mortgage early, so factor it into your selling costs if this affects you.
- Unfortunately, lenders tend to penalise you if you leave your mortgage early, so factor it into your selling costs if this affects you.
- Home report — £100 – £1,000 + VAT
- This is only a legal requirement in Scotland. It includes a property questionnaire, an energy report, and a single survey.
- This is only a legal requirement in Scotland. It includes a property questionnaire, an energy report, and a single survey.
- Capital gains tax — cost variable
- If you only own one home, then you’re not liable to pay Capital Gains Tax (CGT). If you own more than one home though, then the sale of any property that isn’t your main residence will be subject to CGT. The actual amount is based on the amount the property has increased in value during the time that you’ve owned it. There are ways to minimise how much you need to pay so speak to an accountant first so that you’re armed with the facts.
- If you only own one home, then you’re not liable to pay Capital Gains Tax (CGT). If you own more than one home though, then the sale of any property that isn’t your main residence will be subject to CGT. The actual amount is based on the amount the property has increased in value during the time that you’ve owned it. There are ways to minimise how much you need to pay so speak to an accountant first so that you’re armed with the facts.
Do you need an estate agent?
The lion’s share of the cost is estate agents. So it bodes the question — are they worth the money or can you cut the cost and sell your home on your own?
It depends on who you choose, so make sure that you do your research: What timelines do they usually operate to? How much local knowledge do they have? How often do they achieve the asking price? What’s their success rate (listings vs sales achieved)? Can you speak to some of their customers for a real review?
A good estate agent will get you more for your house than you’d be able to get on your own (making it a no-brainer).
A bad estate agent though could cost you £10,000’s through a combination of fees and a lower than expected sale price.
Don’t be lured in by fixed-fees though (often advertised by online estate agents). These agents have absolutely no incentive to sell your home for the best price since they get a fixed amount.
How do online estate agents differ to traditional agents?
- They’re cheaper.
- But cheap isn’t always better, and in this case, it’s much worse. Online agents, like PurpleBricks or Yopa, usually charge a fixed, upfront fee. On paper it seems attractive (you’re ‘saving’ money) but in practice it’ll cost you more. There is no incentive for them to sell your home (they’ve taken your money), and if you do sell it then you’ll probably get less than an experienced estate agent that’s used to negotiating.
- But cheap isn’t always better, and in this case, it’s much worse. Online agents, like PurpleBricks or Yopa, usually charge a fixed, upfront fee. On paper it seems attractive (you’re ‘saving’ money) but in practice it’ll cost you more. There is no incentive for them to sell your home (they’ve taken your money), and if you do sell it then you’ll probably get less than an experienced estate agent that’s used to negotiating.
- No customer support or hand holding.
- You’re on your own left to fend for yourself; from arranging viewings, to negotiating the price, to securing the sale. Not great news if you’re unsure of what’s involved in the selling process especially when you consider moving home is already considered more stressful than divorce or having a baby.
- You’re on your own left to fend for yourself; from arranging viewings, to negotiating the price, to securing the sale. Not great news if you’re unsure of what’s involved in the selling process especially when you consider moving home is already considered more stressful than divorce or having a baby.
Are there other selling options?
- Auctions
- Best for homes that are proving difficult to sell because they need a lot of work and buyers are hard to find. Auctions are an investors honeypot so expect to get considerably less than market value but they’ll take a property no matter its condition. There are no selling fees but high buying fees that the investor will factor into their offer.
- Best for homes that are proving difficult to sell because they need a lot of work and buyers are hard to find. Auctions are an investors honeypot so expect to get considerably less than market value but they’ll take a property no matter its condition. There are no selling fees but high buying fees that the investor will factor into their offer.
- Quick Sale Companies
- Cash buying companies are great if speed is at the top of your list and you need a guaranteed sale. They are the buyer so there are no selling fees to pay. They’ll offer less than market value but you do have control of the price (unlike with auction).
- Cash buying companies are great if speed is at the top of your list and you need a guaranteed sale. They are the buyer so there are no selling fees to pay. They’ll offer less than market value but you do have control of the price (unlike with auction).
- No Fee Estate Agents
- Not everything sounds too good to be true. We’re proud to be Hull’s only genuine no fee estate agent. We’ve combined the best elements of all the different selling methods, and removed the worst, to create something unique that works for all parties. We don’t charge selling fees; we charge the buyer a non-refundable fee instead to secure the property and commit to buying meaning that it’s more or less a guaranteed sale. Plus, we only work with motivated sellers and will hand hold you through the process from start to finish. Call our team on 01482 762166 for more information.
- Not everything sounds too good to be true. We’re proud to be Hull’s only genuine no fee estate agent. We’ve combined the best elements of all the different selling methods, and removed the worst, to create something unique that works for all parties. We don’t charge selling fees; we charge the buyer a non-refundable fee instead to secure the property and commit to buying meaning that it’s more or less a guaranteed sale. Plus, we only work with motivated sellers and will hand hold you through the process from start to finish. Call our team on 01482 762166 for more information.
How much does it cost if a sale falls through?
According to This Is Money, it costs sellers £3,000 – £4,000 if their sale collapses once an offer has been accepted.
How often do house sales fall through?
1 in 3 sales fall through in the UK. Reasons are varied including slow progress, a buyer simply changing their mind, and survey issues.
Comparing Fees: Estate Agent vs Online Agent vs Rezee
The below scenario is for a property valued at £90,000 – £100,000.
The below scenario is for a property valued at £80,000 – £90,000.
The below scenario is for a property valued at £70,000 – £80,000.
How to choose a solicitor?
If you want your move to go smoothly, then choosing the right conveyancer is as important as choosing the right estate agent. They’re a vital element in making sure it’s a speedy, stress-free sale.
Watch out for these red flags when making your decision:
- Costs — fees less than £500 or over £1,000 should ring alarm bells. Ask to see customer reviews and request details on the average timelines that they work to before signing up. And remember, high costs don’t always mean better service.
- Disbursements — these are pass-through costs that your solicitor will pay on your behalf like surveys, ID checks, and Land Registry documents. They should be more or less the same across the board (irrespective of who you choose) since they are just fixed-fees, so compare quotes carefully. Watch out for ‘additional’ disbursements that are not needed and purely profit-making for the solicitor (it’s usually a tactic employed by those that have a low headline fee of below £500); for example, PI contribution costs, postage/ photocopying/ phone calls, or file storage fees.
- Recommendations — Be wary of recommendations from national online agents, like PurpleBricks, who are increasingly getting a bad reputation.
What happens to your mortgage when selling?
You have two options: you can either ‘port your mortgage’ which means taking the same deal from the same lender to your new home; or you can look for a new mortgage deal. Both options will probably incur fees so make sure that you factor this into the overall cost of selling your home.
Does stamp duty apply to sellers?
No. This is only payable by the buyer.
