It is obvious that buying a home is an expensive exercise, however many people don't realise that selling a home can also involve considerable cost. Before you decide to list your home for sale, you should consider all of the fees and expenses involved so you can better estimate the net proceeds that you will actually receive from the sale. We outline below some of the costs that should be budgeted and attach a template to help you plan for what’s involved.
Preparing your house for sale – Unless your house is in perfect condition, it is likely that you will have to budget an amount to get it ready. We are not advocating that you spend a huge amount of money and “stage” your home, but a few pounds well spent can go a long way to helping you achieve the maximum price in the shortest period of time. For more information and ideas, see our top tips in preparing your home for sale,.
Estate Agent fees – although a few people might opt to try to sell their home privately, the majority of sellers choose to use an Estate Agent. Using a sole agent usually results in a lower fee than having joint or multiple agents. At Aspire Residential, we have different fee structures that can be tailored to the specific requirements of each of our clients.See our blog for further information on whether you should use an agent to sell your home.
Solicitors fees – you will need to engage a solicitor or licenced conveyancer to undertake the legal aspects of the sale on your behalf. Some conveyancing firms will act on the basis of “no completion, no fee” which can be an important safeguard in the event the sale of the property falls through for any reason.
Mortgage break/surrender fees – one overlooked cost by many home sellers who have existing mortgages is the potential "break or surrender costs" for ending their existing mortgage. Depending on the mortgage product that you have, these costs could be substantial, so it is important that you fully understand them and factor them into your budget.
EPC – The majority of residential properties offered for sale are required by law to have an Energy Performance Certificate (EPC). The EPC allows buyers to determine the energy efficiency of the property and what the likely running costs will be. An EPC lasts or 10 years and if you do not have a current one, we can arrange for one to be prepared for your property.
Leasehold pack – If you are selling a leasehold property, then you will most likely have to pay for your landlord (or their agent) to provide a sellers leasehold pack (usually called form LPE1) which provides the buyer and any mortgage provider with relevant information about the property and the leasehold scheme.
Licence to Assign – again, if you are selling a leasehold, depending on the terms of the lease, you might need to obtain a licence from the landlord to sell the property. If this is the case you will have to pay both the landlord and the landlord's solicitors charges for consenting to the sale and providing the licence.
Removal company – if you are not going to do a DIY move, then you will need to hire a removal company. Be sure to get quotes from at least three local companies.
Storage costs – unless you are completing the sale of your current home and the purchase of a new home on the same day, you are going to have to budget for temporary storage costs. There are numerous websites that will allow you to compare storage costs.
Moving day costs – depending on your family circumstances and when you are moving, you might need to arrange for pet minders or child care during the day of the move.
Post redirection – The Royal Mail offers a postal re-direction service for people moving home. You can sign up for this service for three, six or twelve months.
If you are planning on buying a new home at the same time that you are selling, then also refer to our blog on the cost of buying a property .
To help you pull together your selling budget please feel free to use our attached template:
