One of the most commonly asked questions we hear is: ‘What are the costs involved in selling a property?’
While it isn’t possible to provide an exact figure here, as each vendor will have costs unique to them, the honest truth is that selling your property does come with a few fees. So, even if you plan to make some money from selling up, it’s a good idea to budget these costs in early and plan accordingly, so you aren’t faced with any unexpected bills.
The main costs which occur when selling a property are; the selling fee (estate agency fee) and the conveyancing fee (solicitor fees). Other possible costs may also include mortgage fees, removal costs and an Energy Performance Certificate (but only if your property doesn’t already have one in date). You can check if your property has a valid EPC here.
Estate Agency Fees
All estate agencies will charge a selling fee, these usually range anything from 0.5% up to 3%. At Arden Estates, our general pricing strategy is that we charge 1% plus VAT of the sale price – remember, this is only payable when your property successfully completes its sale.
Some estate agencies will ask for fees or a proportion of the fees to be paid upfront. Many online agencies may be cheaper, but they often require pre-payment, while some high street agencies may ask for an upfront fee to cover their marketing expenses. Here at Arden, we won’t charge any upfront fees for marketing your property, as we work on a ‘No Sale, No Fee’ basis. This means you will only pay us at the end of the process on completion of your sale.
If you have any questions about fees or costs, please contact us, we are always open to talk and are flexible. When it comes to cost, we are always fair and want you to feel comfortable with things.
It’s important to us that we remain transparent to you, our customer. With this in mind, if you change your mind later on and choose not to sell after the initial marketing has been completed, then although we will not charge you our sales fee, we do charge a nominal £250 plus VAT to cover our photography and admin costs. If at a later date you wish to relist your property again with us, then the £250 plus VAT you paid will be refunded by way of a reduction on your sales fee.
Conveyancing Fees
The next cost to consider when selling your property is conveyancing fees. You may have a solicitor you already trust and wish to work for you while you are selling your property. However, most estate agents can recommend solicitors they work well with if you’re not sure where to start.
We are happy to provide you with solicitor quotes for a range of conveyancers, so you can compare prices and choose which you feel happy to move forward with.
The average price for a conveyancer when you are selling a property is around £800 plus VAT and disbursements. However, if you will be making an onward purchase, this will likely be higher, as the property you are buying will require searches, which are carried out by your conveyancer.
Energy Performance Certificate
In order to sell your property, by law, it must have a valid Energy Performance Certificate (EPC). Many properties already have an up-to-date EPC, especially if they were built less than ten years ago or have been listed on the market for sale within the last ten years. You can check whether your property has a valid EPC here.
If you do require an EPC, then your estate agent should be able to organise this for you, usually at a relatively small additional cost.
Here, at Arden, we can arrange this for you on the day you have your photos taken, at a standard charge of £100 plus VAT. Alternatively, if you’d prefer to find a separate company yourself who provide EPC’s, you can arrange this independently.
Mortgage Fees
This may not apply to everyone who is selling their property, but you should be aware that there are two possible mortgage-related charges you may face:
Early repayment charge (ERC or redemption fee) – Check with your lender if they will charge a redemption fee. In some cases, providers will charge a fee, usually around 1%-5%, if you pay off your mortgage earlier than the fixed term date. You should contact your mortgage provider to find out if by paying off your mortgage early you’ll incur any charges.
A mortgage exit fee – This is a mortgage lender’s admin charge for closing the file on your mortgage and can cost up to around £300. Not all lenders have it, but it’s a good idea to check before you sell, whether you’ll be charged when your mortgage balance is cleared.
If you are making an onward purchase, your current mortgage may be portable. Again, you’ll need to check with your lender if this possible and whether this will incur any admin fees.
Our in-house financial advisors can help with mortgage advice if you have any concerns or questions.
Removal Costs
Unless you are selling a vacant property, you will need to consider removal costs, which can range from £250 to £1,500+. Costs will depend on the size of your property, how much needs to be removed, and whether you are happy to pack things up yourself or you’d like an all-inclusive removal service.
If you have a one or two bedroom flat or house, you may be able to hire a van yourself for the day to get moved out. Although you’ll still need to consider the cost of van hire and fuel, ‘goods in transit’ insurance (in case anything gets damaged) and suitable packing material costs (boxes, bubble wrap etc.).
When it comes to moving, especially from a larger home, usually a removal company with a suitable sized lorry to help with the job will work out more cost-effective and far less stressful.
Other costs to consider
Other costs you may want to consider are any home improvements your property may need to help with the marketing or to get a sale through to completion. It may be as simple as some fresh paint in a couple of rooms or fixing a squeaky floorboard, to more expensive jobs such as needing to replace an old boiler, carrying out a part home clearance (to help de-clutter) or even home staging if you’re selling a vacant property.
So, while it isn’t possible to provide an exact figure, as the costs will be unique to you when selling your property, here at Arden, we’ll do our best to keep your expenses down without compromising on our service to you when it comes to quality marketing, presentation and general service.
If you would like any advice regarding selling your property or you’d like a free valuation, please contact your local Arden branch.