Selling a home will involve several costs. You will need to employ an Estate Agent and pay them a commission, but in doing this you are likely to achieve a higher selling price.
The costs of selling your property are likely to include;
Estate Agents’ Fees
If you are selling your home you’ll want to achieve the best possible price. To do this, we always recommend that you use a professional firm of estate agents with a proven track record and extensive experience in selling homes like yours in your locality. This really is one area where you cannot afford to get it wrong.
These can vary but expect to pay between £450 and £1,800 dependent on the value of the property and the work involved. If you are also buying another property this cost will likely be greater. Always ask for a quote before engaging your solicitor or Licensed Conveyancer.
These are likely to be relatively modest. When selling a property a seller’s solicitor is unlikely to need to make Local Authority searches, Land Registry Fees etc but there may also be charges for bank transfers and photocopying. It’s worth checking your terms of engagement.
Furniture Removals Company
If you are a first-time buyer you might be relying on friends and family to help move you. If not, you’re likely to use a professional removals company to help move your furniture, etc. Either way, you are likely to incur some costs (maybe van hire) which you should allow for in your budget. Budget between £100 to hire a van up to several thousand pounds for the full service.
Capital Gains Tax
At the time of writing one’s main residence is usually excluded from Capital Gains Tax (CGT) liability. However, if you own more than one residential property or if you have inherited a property previously and are now selling it, you may well have to consider a CGT liability.
This can be a complicated subject so we strongly suggest that you take specific advice from your accountant or tax planner. That said, there are usually a variety of costs and allowances available to you to offset any potential CGT.
Pre-Listing Home Decoration or Improvements
Sometimes some imaginative ‘sprucing’ of your home can have a very beneficial effect. Check out our article on how to add value to your home for more ideas.