Following the Spring Budget last week the prospect of selling your home, or your second home, may seem a little more appealing than it did before.
Preparing your home for sale
Before listing your home on the market, it's good to ensure that it is in the best possible condition.
This is the best time to appoint a building surveyor. They will be able to carry out an inspection on your behalf and indicate which areas need improving, how to improve them, and where you can increase the value of your property.
From minor repairs to decluttering, their report will help you make those all-important changes to the property in order to make it more attractive to potential buyers.
While the cost of these preparations can vary depending on the condition of the home, UK homeowners typically spend anywhere from £500 to £5,000 on pre-sale renovations and improvements.
Key considerations
We’ve compiled a checklist to give you an idea of the sort of services that may be involved when selling your property:
- Estate agent fees
- Mortgage costs
- Costs of buying and selling
- Taxes
- Final bills
- Energy Performance Certificate (EPC)
- Incentives for buyers
- Conveyancing fees
- Cleaning costs
- Removal costs
Whilst these costs are to be expected, the exact cost of selling your home will entirely depend on your property type, condition, and individual circumstances.
All properties are sold at different prices which can also vary depending on your location. The good news is sellers have a lot less to pay for than buyers.
Estate agent fees
Many homeowners choose to work with estate agents to sell their properties. Estate agent fees are typically calculated as a percentage of the final sale price of your home and can vary between 1-3%.
For example, if you sell your home for £250,000 – you could pay up to £7,500 on estate agent fees.
You can always contact a building surveyor to ensure your property is correctly valued, so you don’t get any less than what it’s worth.
Mortgage charges for selling a home
If you’re selling and buying at the same time, your mortgage will be really important here. Keep on top of your finances by considering these two potential costs: Mortgage Exit fee and Early Repayment charges.
Again, exact prices may vary but on average a Mortgage Exit fee could cost you around £350 and Early Repayment charges can vary anywhere between 1-5% of the loan.
It’s good to note that these fees may not apply to all lenders, but it’s best to be aware of any potential charges when selling your home.
Conveyancing and legal costs
Conveyancing is the legal process of transferring ownership of a property from seller to buyer.
Conveyancing fees can vary depending on the complexity of the transaction and the solicitor or conveyancer you choose to work with.
On average, homeowners in the UK can expect to pay between £500 to £1,500 in conveyancing fees.
Energy Performance Certificate (EPC)
An Energy Performance Certificate (EPC) assesses your property's energy efficiency, assigning it a rating from A to G.
It's a legal requirement to have one and must be submitted before the property can be listed for sale. A building surveyor can help you with this.
Typically, the higher the EPC rating - the more attractive your property becomes, especially in a more environmentally conscious marketplace.
However, quality comes at a cost. Expect to pay around £150 (though prices can vary) but keep in mind that these certificates remain valid for 10 years.
Should your property receive a low EPC score, buyers may leverage this to negotiate a lower asking price. Ask a building surveyor what changes they would recommend to bring your EPC rating up (you'd be surprised how little it takes!).
Capital Gains Tax (CGT)
Capital Gains Tax may be applicable if you sell a property that is not your primary residence or if the property has increased in value since you purchased it.
The amount of CGT owed will depend on various factors, including the profit made on the sale and any applicable reliefs or exemptions.
Solicitor costs
Appointing a licensed conveyancer or solicitor is an essential step when selling your home. Again, charges will vary. You may be looking between £500 - £1500.
You may find that some solicitors fees will want a percentage of the final sale price of your house, whilst others may have flat rates. So, it’s best to find the option to suit your specific financial situation.
Removal costs
Once the sale has been agreed, you'll need to arrange for the removal of your belongings to your new home.
The cost of removal services can vary depending on the distance of the move and the amount of furniture and belongings being transported. On average, you can expect to pay between £300 to £1,500 for removal costs.
Who are we?
Sillence Hurn’s Chartered Building Surveyors are RICS qualified with extensive experience of building surveying across London and the South of England.
From advice around feasibility, cost planning, undertaking the work in the current market, specifying works, overseeing and managing the implementation of changes, our chartered building surveyors will be able to identify any upgrades and advise you on the best measures going forward.
Read more about our solutions here:
Technical due diligence
Project management
Dilapidations consulting
Cost management
Monitoring Surveying
Party Wall
Contract Administration
Planned Preventative Maintenance
Email us at enquiries@sillencehurn.co.uk or call our Southampton team on 02380 014786 / London at 020 3143 2128
