Selling a house can often be an expensive process, incurring different costs which you may or may not know about. It is important to be aware of the various fees up front to see if you might be able to avoid any of them.
What Fees Do You Have to Pay When Selling a House?
When selling a house, there are many different fees that you will need to pay. This will also depend on how you choose to sell the house.
If you opt for the traditional route of working with an estate agent, you will need to pay the following fees:
- Estate Agent Fees – These are usually commission-base and can be between 1-3% of the overall sale price, plus VAT.
- Conveyancing Fees – Depending on the property type and complexity of the sale, these could be from £400 to £1,500.
- Remortgaging Fees – If you need to switch providers, you may be charged an early repayment fee which is a proportion of the loan amount.
What Other Costs Are There When Selling a Property?
There may be other costs that you might incur when selling a property, including, but not exhaustive to:
- Home Improvements and Repairs – In order to sell your home, you may need to make certain improvements to the home or undergo significant repairs.
- Removal Costs – Make sure that you have factored removal costs into your budget.
- Energy Performance Certificate (EPC) – If you do not already have one, you will need to obtain a valid EPC before selling.
- Deep Cleaning – You may want to thoroughly clean your home before you leave and hire a professional cleaning service.
- Capital Gains Tax – If the property being sold is your second home, you will need to pay Capital Gains Tax.
Can You Avoid These Fees?
If you sell your home via other means, you could avoid some of the aforementioned costs. For example, if you sell your home via a traditional or modern auction, you will avoid having to pay an estate agent’s fee; however, you will have other costs to cover such as the entry fee for the auction and commission to the auction house.
If you sell to a private buyer, you could once again avoid the estate agent’s fee. However, the buyer may make certain demands such as asking for repairs and improvements to be made before going ahead with the sale.
Selling to a cash house buying company often means you can avoid the costs of estate agent fees and legal costs. With these sales, it is unlikely that you will need to do any repairs or other work before the sale goes ahead so you can end up saving money there too.
How to Avoid Fees When Selling a House
Selling a property off-market can help you cut many different costs such as estate agent fees and the cost of advertising. Off-market sales include selling privately, selling at auction or selling to a quick house sale company.
One of the biggest costs when selling a house the conventional way is the estate agent’s fees. When working with an estate agent you are paying for their services; this includes their property expertise, advertising the property and organising viewings. If you are willing to do this without the help of an estate agent, you could save thousands of pounds.
The only way to avoid the legal bills associated with property sales is to work with a cash house buying company. These types of companies usually cover the legal bills and any other fees. Also, selling to a cash house buying company means that you do not need to fork out for any repair or home improvement costs as they will buy the home in any condition.