What Are The Costs of Selling a House?

Whether it’s a primary residence, or something recently inherited, selling a property is something that most people will do at least once in their lives. However, property is a notoriously expensive market to sell in. Therefore, to help prepare you for the potential costs involved, we’ve compiled a breakdown of the most popular expenses you can expect.

Mortgage

Depending on the amount that’s left on your mortgage, paying it off can drastically affect your takeaway once the house is sold. You may also be liable for early repayment charges or a mortgage exit fee so it is worth checking with your mortgage provider to get a clear idea of these financial obligations. Whilst portable mortgages are becoming increasingly popular, it is still worth reviewing these payments, especially if you’re moving to a higher-value home.

Surveys

Surveys are popular among prospective buyers, especially for older properties. However, although the buyer will generally pay for their own survey, it is still a good idea to get one done yourself so you are aware of and can fix any potential issues that might be found which could complicate the buying process.

When selling a house, it is compulsory to have an Energy Performance Certificate. Unless you already have one issued under 10 years ago, you will need to buy a replacement.

Preparing the House

It is easier to sell a house that is in a sellable condition. If a survey comes back with areas of concern you will have to balance the costs of repairing the house and the likelihood of selling without these repairs. Whilst renovation projects are seen all the time in media, most people want a house they can move straight into. Even something as simple as replacing the windows, carpets, or paint colour could drastically improve your chances of selling at a higher price.

Photography

Some estate agents will offer complimentary photography services but with others, this may be an additional expense. With pretty much everyone viewing a property online before even thinking about seeing it in person, making a good first impression is essential and good photographs could be just the way to do that.

Conveyancing

A conveyancer is a specialist property lawyer who will handle all the legal paperwork for the transactional stages of house selling. This includes doing all necessary research and contract drafting. Although a conveyancer may come recommended by your estate agent, they will have their own separate fees.

Capital Gains Tax

If you are selling any property other than your primary residence you will have to pay capital gains tax.

Estate Agent Fees

Estate agent fees are possibly the most expected of the additional house-selling charges. Included in this cost is marketing the house, conducting viewings, and assisting with negotiations. As these fees are generally calculated as a percentage of the price the house is sold for (a UK agent taking anywhere between 0.75% of 3% of this depending on property location and value), they won’t be due until the house is sold.