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How to budget for your move

19/07/18

There are some important costs you need to bear in mind when you are looking to sell, so it is worth being prepared by knowing what to expect.

As a seller, you will typically have fewer costs that the buyer who will pay stamp duty for any house they buy that is worth over £125,000 along with having to pay for any surveys and mortgage fees.

Essential maintenance and repair costs

Before putting your home on the market you should consider what essential maintenance and repair works you should do to maximise your selling price. You should set a budget for this work so you can make sure you know what you can afford and prioritise the work accordingly.

Estate agent fees

Estate agent fees are always paid for my the seller. Most estate agents calculate their fees based on a percentage of the final selling price of your property. This rate of commission can vary between estate agents but is usually between 1% and 3% including VAT. It is possible to negotiate these fees before signing a contract with an estate agent, but always review what your agent is offering you so you ensure you get the best service.

Of course, you can go it alone and try to sell your property privately or via an online estate agent but your will receive fewer important services such as arranging and conducting viewings where an estate agent can add massive value. 

Energy performance certificates (EPCs)

If you are selling your home you have to provide any potential buyers with an energy performance certificate (EPC) for the property. An energy performance certificate gives your house an energy efficiency rating, allowing potential buyers to get an idea of the running costs for your house. EPCs are carried out by accredited domestic energy assessors and can be arranged through your estate agent for somewhere between £50 and £120.

Mortgage Fees

Finding the right mortgage so you are able to consider your next move is essential. You can start by contacting lenders directly or speaking to your current mortgage provider. However, to ensure you find the best mortgage to suit your circumstances and affordability it is worth speaking to a mortgage broker. Mortgage brokers have access to the whole mortgage market and are able to determine which lenders will offer you a mortgage without going through a full application which can potentially affect your credit rating.

Usually a mortgage broker will charge a fee anywhere from £299 upwards and in a lot of cases this is simply added to your mortgage so not directly payable.

We have carefully selected a mortgage broker partner who has successfully secured over £1Billion worth of finance for their customers. If you are interested in new mortgage contact Mortgage Advice UK.

Legal costs

You will need to instruct a solicitor or licensed conveyancer to deal with the legal aspects of selling your home. This process is known as conveyancing. The conveyancer or solicitor either charges a flat fee or a percentage of the value of the property when it is sold. Fees are typically between £500 and £1,500 including VAT, depending on the complexity of the transaction. If you are buying another home at the same time, negotiate fees for them to deal with that at the same time.

Removal costs

Some people choose to move house independently, but it can be very stressful, time consuming and not to mention hard work. For many it is far easier to employ the services of a removal company and the costs will depend on how far you are moving and how much stuff you have. It is wise to get a few quotes so you can ensure you are getting a good deal and that you are confident the removal firm will respect your belongings. 

It is important to make sure they are fully insured to protect against any possible damage to your possessions. Some removal companies also offer packing services and materials which can be a massive help. Try to also bear in mind that there could be significant charges for storing your possessions should there be any delay between vacating your property and getting the keys for your new home.