When it comes to selling property, most of us can expect to make a tidy profit in the currently strong property market. However there is a price to pay before you reap your rewards...
1. Home Information Pack
All sellers were going to be required to produce a Home Information Pack (HIP) for prospective buyers from June 1, 2007, until a last minute delay put a stop to them going ahead. Now they will be phased in gradually, and still apply to larger sized properties of four bedrooms or more from August. It's likely a HIP will cost several hundred pounds. Find out more on the HIPs delay and if your property will need one.
Tip - your estate agent or conveyancer may cover the cost of your HIP as an incentive to use them.
2. Estate agent fees
When you use an estate agent to sell your property, they take a commission based on a percentage of the final selling price, usually between one and two per cent.
Tip - if you're looking to cut costs and are prepared to put the extra legwork in, selling your home privately could be an alternative option for you. This cuts out estate agent fees altogether.
3. Conveyancing
Conveyancing covers the legal side of selling and buying a property. Your solicitor will handle all the paperwork and administration.
Tip - if you're also buying a property, you may be able to negotiate cheaper fees that cover both the buying and selling process.
4. Storage
Not all property transactions can be perfectly timed, in which case you may need storage. As a rough guide, a hundred square metres equates to 200 boxes of goods.
Tip - consult staff on how much space you'll need to ensure you don't hire too much, or too little, room for your goods.
5. Removals
Once you've sold, it's time to make way for your home's new occupants. A removals firm will pack and transport your goods and manage the whole moving process.
Tip - cover your goods while they're in transit with moving insurance. If your removal company don't offer this then you will need to take out your own policy. Alternatively, ask your home insurance company if you're covered by your existing contents policy.
6. Buying your new property
Read our guide to the real cost of buying property.
Related articles
- The real cost of buying property
- How to sell your home #1 The basics
- How to sell your own home #1 An overview
- How to choose a good estate agent
- Home Information Packs - new delays
Example costs
- Home Information Pack: £350 - 600
- Estate agent fees: £1770.99
- Conveyancing: £389
- Storage: £36 for 100 square metres (one week)
- Removals: £300-400 (local); £600-700 (50 mile relocation)
These are average costs based on selling a property worth £177,099, which is the average price of a house in the UK according to the Land Registry (February 2007 figures).
Useful links
- Estate agents - Find local estate agents in Huddersfield
- Conveyancing - Get the legal legwork taken care of
- Storage - Find local storage for your goods
- Removals - Find removal companies in Huddersfield
David (South Oxfordshire), on 08/04/2008 at 18:27
Disillusioned wrote:
There can be several other costs as well. Many people spend money on DIY jobs, decorating and other "house-doctoring" tasks to make their homes appealing to buyers. In our case we have also had to renew the lease on our flat as, with 74 years to go, it was scaring off all our potential buyers. We were really shocked at how much it is costing us - the lease renewal plus valuation and legal fees, for a two-bedroom flat, is costing over £17,000, taking a huge whack out of the profit we made and making it harder to take the next step on the property ladder. Be warned!
This is a lesson in leaseholds. This does not reflect the average costs of selling. The reason your potential buyers are being scared off is because they are well aware of the potential costs associated with extending a lease.
Diane (Boston), on 20/11/2007 at 14:27
I think your example costs are extremely conservative. Even if you can find an estate agent charging only 1% there will be 17.5% VAT added.
I also think the conveyancing costs are way too low as are the removal costs. In the last five years I have moved twice and the costs have been more like double those you have estimated based on house prices of similar ilk.
Madwitch (Harrogate), on 26/10/2007 at 15:14
It's also worth trying to negotiate with your estate agent - we reduced our fees from 1.5% to 1% because we bought our next house with the same estate agent.
Disillusioned (Redbridge), on 20/09/2007 at 18:07
There can be several other costs as well. Many people spend money on DIY jobs, decorating and other "house-doctoring" tasks to make their homes appealing to buyers. In our case we have also had to renew the lease on our flat as, with 74 years to go, it was scaring off all our potential buyers. We were really shocked at how much it is costing us - the lease renewal plus valuation and legal fees, for a two-bedroom flat, is costing over £17,000, taking a huge whack out of the profit we made and making it harder to take the next step on the property ladder. Be warned!
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