Selling a house costs more money than you might think. Here we’ll look at how much does it cost to sell a house, and at some ways you can save on the costs of selling your house.
What costs are involved when selling a house?
There are a number of different costs to the seller when selling a house:
The cost of an EPC
Before you can put your house on the market you’ll need an EPC or Energy Performance Certificate from an accredited energy assessor. This shows potential buyers its energy efficiency rating and is required by law.
According to Checkatrade an EPC will cost between £35 and £120.
If you already have a valid EPC (an EPC prepared within the last 10 years) you can save by using that.
The cost of a Home Report
Selling a house costs slightly more in Scotland than England & Wales as you’ll need a Home Report before you can market it. (Home Reports include an EPC.)
A Home Report for a house worth £200,000 will cost around £350-£400 on average.
Estate agent’s fees
What do estate agents charge for selling a house?
The cost of estate agency fees when selling a house depends on whether you use a commission based estate agent or a fixed fee estate agent.
Commission based estate agents typically charge around 1.5% plus VAT of the selling price of your house. You might be able to save by negotiating on fees with the estate agent.
Fixed fee estate agents Purplebricks charge £999 including VAT (or £1,499 in London). Yopa say selling a home costs from £999.
Auction fees
The cost to sell your house at a property auction will be different to an estate agent’s fees. Auction fees vary but are typically around 2.5% of the hammer price. There may also be an entry fee.
Selling to a cash buyer
The cost to sell your house to a cash buying firm could be much less than using an estate agent, or you could even sell your house for free. Some cash house buying firms will pay all your selling costs. (Although bear in mind this will be reflected in their offer price.)
Conveyancing costs when selling a house
You will need to pay a solicitor or licensed conveyancer to legally transfer the ownership of your house from you to the buyer.
The conveyancing cost of selling a house varies from conveyancer to conveyancer so you can probably save by shopping around.
Conveyancing costs when selling a house are less than when buying a house. It may cost more if you have a mortgage or your house is leasehold though.
According to Unbiased the conveyancing cost when selling an average house is around £660 including VAT .
Stamp Duty is payable by the buyer. So there are no Stamp Duty costs to the seller when selling a house.
Costs of preparing a house for sale
When considering what selling a house costs don’t forget to allow for any repair work you might need to do to make it sellable. For example, fixing that broken gutter or curing that damp problem. Also think about any improvements you could make that might make it more attracting to buyers, such as painting and decorating.
Removal costs
Moving costs shouldn’t be forgotten in the cost of selling a house. The cost depends on whether you pay a removal firm or do it yourself, which is likely to offer a saving.
According to Getamover the average charges of removal firms are between £420 for a one bedroomed house up to £1,000 for a four bedroomed house.
Mortgage exit costs
If you have a mortgage outstanding there will be a mortgage exit administration fee to exit it. This is usually a fairly small amount at around £50 to £300 depending on the lender.
If you have a fixed rate mortgage however there is likely to be an early repayment charge or ERC to end it before the end of the fixed period.
Mortgage charges could make the cost of selling a house a lot more than you might expect. According to Unbiased early repayment charges can be between 1% and 5% of your outstanding mortgage balance.
Capital Gains Tax (CGT) when selling a house
If you are selling your own home there will be no capital gains tax to pay.
If you are selling a second home, holiday home or buy to let then there may be Capital Gains Tax to pay. This will be based on the amount by which the value of the property has increased since you bought it, less any CGT allowance you are entitled to.
More information about Capital Gains Tax is here.
Estimates of the cost of selling a house
To give you a better idea of what selling a house costs we’ve put together a few different examples.
These estimates assume that you need a new EPC, use a commission based estate agent to sell your house, pay an average conveyancing charge and use a removals service to move your furniture. They assume that you have no mortgage outstanding, that your house does not require any repairs to sell it and you are not liable for any Capital Gains Tax.
What selling an average house costs
Selling price £280,000. Estimated EPC cost £75. Estimated estate agent’s commission at 1.5% + VAT = £5,040. Estimated conveyancing charge £660. Estimated removal costs £800.
The total cost of selling an average house is likely to be around £6,575.
What selling a flat or small house costs
Selling price £180,000. Estimated EPC cost £60. Estimated estate agent’s commission at 1.5% + VAT = £3,240. Estimated conveyancing charge £500. Estimated removal costs £420.
The total cost of selling a small house or flat is likely to be around £4,220.
What selling a large house costs
Selling price £700,000. Estimated EPC cost £120. Estimated estate agent’s commission at 1.5% + VAT = £12,600. Estimated conveyancing charge £1,000. Estimated removal costs £1,000.
The total cost of selling a large house is likely to be around £14,720.
It’s important to remember that the cost of selling a house varies according to so many different factors so it is advisable to get estimates for all the different expenses before deciding to sell your house.
