As the UK housing market continues to bounce back and evolve, many homeowners are considering selling their properties. However, the costs associated with selling a home can be substantial and are often underestimated. Before listing your property, you should be sure that you are fully prepared for the property journey.

Key Expenses Involved in Selling a Home

  1. Estate Agent Fees: These typically range between 1% and 3% of the sale price plus VAT. While online agents may offer lower rates, they tend to lack the local knowledge and sales progression skills that get your sale over the finish line.

  2. Conveyancing Fees: The legal process of transferring property requires a conveyancer or solicitor, with fees varying significantly based on the property's value and complexity of the sale. Homeowners would have previously expected to pay between £850 and £1,500 plus VAT per transaction, but recent statistics suggest that the average cost is now around £2,000, before disbursements.

  3. Energy Performance Certificate (EPC): Sellers must provide an EPC for the property, unless there is a valid certificate from the past ten years. Obtaining an EPC can cost anywhere from £35 to £120.

  4. Capital Gains Tax (CGT): If selling a property that is not your main home, CGT may apply to the profit made. The specific amount depends on your overall income and the gain size, but the basic-rate taxpayers pay 18% and higher or additional-rate taxpayers pay 28% on gains from residential property.

  5. Removal Costs: The physical act of moving can vary widely in cost, typically between £300 and £600 for a local move, and significantly more for a longer distance. These costs can increase based on the volume of belongings and the level of service required.

  6. Home Repairs and Staging: Before listing, many sellers invest in home improvements to increase the property’s appeal and market value. These costs are highly variable and can range from a few hundred to several thousand pounds, depending on what is needed to make the property market-ready.

Given these varied expenses, sellers should carefully plan their budgets and consider their sales strategy. Some may choose to sell at auction or use an online estate agent to reduce costs, while others might prefer the full service that traditional agents offer. Additionally, considering market timing can be crucial as it impacts not only the selling price but also how quickly a property might sell.

Selling a home involves a range of costs that can quickly add up. By understanding and planning for these expenses, sellers can better manage their finances and make informed decisions throughout the selling process. As the market continues to change, staying informed and seeking professional advice is more important than ever.

Knowing your likely costs before you move will help you gain a better understanding of your financial position for your onward move, and lead to fewer surprises further down the road.il Nilov: https://www.pexels.com/photo/couple-people-woman-hand-6963017/Photo by Mikhail Nilov: https://www.pexels.com/photo/couple-people-woman-hand-6963017/Photo by Mikhail Nilov: https://www.pexels.com/photo/couple-people-woman-hand-6963017/Photo by Mikhail Nilov: https://www.pexels.com/photo/couple-people-