A few weeks ago, we published a piece all about the hidden costs of buying a new property. In that, we looked at all the little things you might not think about when going through with a sale, along with all the places little costs can be hidden away during the process. Today, we want to look at the other side of the coin – at the costs of selling your property. You see, there are plenty of things you might not have considered about selling your property as well, which could eat into the total price you end up getting. This could impact the price you decide to sell your house for, so it’s important to bear them in mind.
Mortgage Costs
Sorting out your mortgage, moving it from one property and maybe even one provider to another, can end up increasing the price of selling a property. Depending on the specifics of your mortgage and your mortgage provider you might even face early repayment charges, which typically vary between 1-5%, and can be quite hefty depending on how much of your mortgage is left to pay off. Thankfully, if you have a ‘portable’ mortgage or a Standard Variable Rate, these can be avoided, but you need to check with your mortgage provider to be sure.
Solicitors and Conveyancers
Fees for solicitors and conveyancers don’t just apply to the buyer – the seller needs to pay for their side of things too. While fees for these do vary, the Homeowners’ Alliance recently reported that they can cost between £500-£1500 for the legal fees alone. On top of this, there are often individual fees applied to different stages of the process. So you will need to make sure you have enough in reserve to cover:
- Transferring Ownership (around £200-£300)
- Local Development Searches (around £250)
- Bank Transfers (around £20-£30)
- Title Deeds (around £25)
And of course, depending on the provider you use there may be added costs on top of this. You can ask for a detailed cost breakdown before you start, which will help you understand what costs you need to prepare for and choose the right provider for you.
Renovations
Many homeowners will try to add value to their home by doing a few renovations before they go to market. A newly renovated home can drive up the asking price and increase your final price, but the downside is those renovations will cost you some money first. Whether you want to redo the worn-out kitchen or give the whole house a new lick of paint, you will need to factor in the cost of any renovations or improvements that need doing before you put the house on the market.
Annoying Little Extras
Then, of course, there are the annoying little extras no one ever tells you about. For example, if you’re using a removal service, they may change prices depending on demand or time of year. Getting a quote ahead of time will help ensure you don’t end up overpaying for this.
You may also find your utility providers hit you with a big final bill if you’ve been on estimated bills while in the property. Keeping a log of your gas and electric meters can help manage this, although the paperwork might get a bit tedious.
You will also need to redirect your post with the Post Office – which isn’t a free service. This can cost anything up to £100 depending on how long the redirection is for and for how many people, and while it’s small compared to the other costs of selling a house, it’s still something you need to be prepared for.
At Northwood, we believe that honesty is the best policy. We are here to ensure you understand the full process of selling your home, and to help you get the most value you can out of your most expensive asset. Our advisors will let you know if we think there is something that can be done to increase the asking price, and will guide you through the selling process from beginning to end. If you would like to find out more, just get in touch with us today.
