House Selling Fees: Unveiling the Costs for Sellers
Jul 11, 2024
“A comprehensive guide for sellers to understand the house selling fees”
Determining the actual cost involved in selling a house is a bit challenging as most of the services needed for house selling charge you on a percentage basis. Several costs are involved in house selling ranging from estate agent commission, legal fees, moving charges, and home preparation charges to solicitor fees. You also need to consider remortgage fees, home report expenses, capital gains tax, and others. As a seller, having a clear understanding of the possible house selling costs is essential as these costs impact your net profit. By going through this blog, you will gain information about house-selling fees to better understand the costs involved in selling a house.
House Selling Fees: An Overview
Are you wondering how much you need to pay as fees and other charges after selling a house? The answer is it varies. Being a seller the biggest cost of selling a house for you is the real estate agent’s commission, determined by the final sale price. The higher the sale price is the more commission you need to give your estate agent. Then comes the other fees and expenses.
Note: The fees-related statistics stated below are the average cost for the year 2024 only and can be influenced by market trends and conditions. So, the cost-related numbers mentioned in this blog are not permanent and can change over time.
House Selling Fees and Costs in the UK
| Service | Cost |
|---|---|
| Estate agent fees | 1% - 3% of the final sale price |
| Legal fees | £800 - £1800 |
| Removal costs | £420 - £1800 |
| Remortgaging fees | £1000+ |
| EPC | £60 - £120 |
Estate Agent Fees - The Biggest Cost for Selling a House
When calculating the total selling cost, the biggest amount will be the commission of a real estate agent. In the UK a real estate agent typically charges a commission of 1% - 3% of the final sale price. The percentage also depends on preference whether you choose a sole estate agent or a multi-agency arrangement to sell a property.
Conveyancing Solicitor Fees or the Legal fees
Next, is the solicitor fees that you have to pay for legal services involved in selling a house. Engaging a solicitor is a legal requirement to cover all legalities associated with the house sale. The solicitor fee can be on a percentage basis or you can hire a solicitor on a fixed fee basis. Solicitor fees also depend on various factors like the type of property, complexities involved, and the location. Generally, solicitor fees for selling a house are lower compared to buying a house. If you are selling a house in the UK, you may need to pay around £800 - £1,800 as solicitor fees.
Removal and Mortgage Cost
Another big cost involved in selling a house is the removal cost or the amount you require to move all your household items to a new home. Removal costs also depend on various factors like the size of your house, possessions, moving distance, accessibility to the house, and others.
Sellers also need to consider two types of mortgage fees when selling a house. Early repayment fees and mortgage exit fees are the two types of fees to pay when you have a mortgage on your property.
Energy Performance Certificate (EPC) Fees
Obtaining the Energy Performance Certificate is also a legal requirement when selling a house. The EPC provides information to a buyer regarding the energy efficiency of a house when it comes to heating and lighting. In the UK, the EPC certificate usually costs around £60 - £120. You can get the EPC certificate for homes, business properties, and public holdings. Other certificates you may need to sell a home are a gas safety certificate, a boiler safety certificate, and electrical installation certificates.
Capital Gains Tax
If you are an investor selling a residential property or a homeowner with more than one house, you have to pay the capital gains tax. This tax is levied on the profitable amount you gain from selling a house. The percentage of this tax depends on what type of taxpayer you are. For example, if you are a basic-rate taxpayer, the percentage will be 18% and 24% for a high-rated taxpayer on the profitable amount gained from the property sale.
To conclude, the house-selling process is a challenging task, from preparing a house for sale and finding potential buyers to considering the costs involved in house sales. A seller needs to consider various factors to navigate the house-selling process safely and efficiently. You can partner with Estate Agent Power to sell or buy a property smoothly. The real estate platform offers you all selling and buying-related services under one roof.
