There can be a lot to think about when selling your house, such as cleaning, transporting precious items, and moving to a new residence. However, it’s important not to lose sight of the fact that the main goal of a property sale should be to maximise returns. In order to do this, sellers must make an effort to reduce their costs when selling, as well as making sure the conveyancing process runs smoothly.
Costs associated with selling residential property
It can be difficult to determine the cost of selling a house, especially for large properties. Although regardless of the features of the property, there are many factors which can add to the cost of selling your house. This includes:
- Estate agent fees – These typically range from 1-4% of the total value of the property including VAT, with the exact rate depending on the agency.
- Capital Gains Tax – This tax applies to ‘the profit when you sell something that’s increased in value’, which almost always applies to the sale of a house.
- Mortgage fees – If you’re selling your house and taking out a new mortgage, you may need to pay either an exit fee or an early repayment charge.
- Insurance – It’s often recommended that sellers take out indemnity insurance. The policy covers legal property defects that either can’t be resolved, or have very high time/money costs associated with them.
- Repairs – If a property survey finds issues with the property, this can risk having the value of their property reduced. As a result, it’s recommended that sellers make repairs before they put their house on the market.
- Conveyancing fees – Your conveyancing solicitor is a legal expert who handles the legal paperwork and processes associated with the sale. However, unlike estate agent fees, fess for conveyancing services usually scale depending on the amount of work involved.
- Auction fees – If you’re choosing to sell at auction, be aware that there are fees to pay. This will typically be a small percentage of the property value, although it could also include advertising costs. Read ‘Selling a property at auction: What you need to know’.
Expert tips for reducing costs when selling your house
The goal of anyone selling an asset, especially a high-value asset such as a house or commercial property, should be to maximise the returns. Taking action in the following areas can enable sellers to reduce the costs associated with the transaction.
Negotiate
As established above, those selling through an estate agent will be subject to fees. However, you can ask your estate agent what their total fees and charges are expected to be for the sale. Then it’s possible to negotiate a lower amount if it’s necessary for your budget. Similarly, it may be possible to negotiate with auctioneers on their fees to cut costs.
Obtain an Energy Performance Certificate (EPC)
It is a legal requirement that you have an EPC for your property before it is sold. Although it costs money to get the certificate, you can keep it for 10 years before you need to apply for a new one. As such, this cost may not be necessary if the previous occupant got the EPC within the 10-year timeframe.
Manage your move
Professional removal companies can be expensive. Taking charge of moving belongings to your new property yourself can save a lot of cash, even if you need to hire a rental van in the process. The only issue is managing your time effectively to make sure everything is moved out in time to allow the conveyancing process to progress to the next step.
Fixed fee conveyancing
Legal fees are unfortunately unavoidable when buying or selling a property. However, the best way to make sure this cost is minimised is to find a conveyancer with competitive rates that are fixed. The latter guarantees that you aren’t hit with any unexpected costs. It’s important to note that poor quality conveyancing can cause significant disruption, so always go for solicitors with a proven track record even if they’re slightly more expensive.
Conveyancing solicitors for house sales
At Toomey Legal, we understand it’s important to sell your house without any delays so you can move onto the next step in your life. Whether that’s buying a new home, investing in a business, downsizing, or simply moving on, our team is committed to getting the best results for you. We go above and beyond in our services, providing legal counsel whenever it is necessary during the conveyancing process. Get in touch if you have any questions.