- Birmingham Property Blog
- Hidden costs involved with selling your home
Hidden costs involved with selling your home
December 30, 2015
Planning on selling your house?
Selling a property is an exciting time, but it can of course be an expensive time, too. While homeowners are busy focussing on what they can afford in terms of a new property, many forget to set aside money for hidden or unexpected costs that can crop up when selling a home.
During the sales process, you may be hit with unforeseen fees associated with everything from marketing to maintenance and legal paperwork. Whether you are going through an estate agency or selling your home privately, it’s wise to be aware of these and other hidden costs:
Unless you’re moving from a furnished property into somewhere new, you’ll likely have furniture and white goods to think about as you take possession of your new property. The cost of hiring removal services has risen by 21 percent from 2004-2014, now costing an average of £1,034.
Fees for changes to your mortgage
Lenders can levy mortgage exit administration fees (MEAFs) when a mortgage balance is paid off in full or switched to another lender before the agreed-upon tenure. While not all lenders charge these fees, many do, and they generally range from £50-£250 and upwards. Similarly, if you choose to remortgage when you move, you could incur penalties that may be 1-2 percent of the outstanding balance. Discuss your plans to sell your home with your lender to determine if you will need to put aside any money for mortgage-associated costs.
Many homeowners don’t account for VAT that is added to virtually everything, from estate agency fees to legal fees. For example, if you sell your property for £120,000 with 2 percent estate agent fees, you may expect to part with £2,400. However, with VAT, this figure jumps by £480 to £2,880. Make sure you check whether VAT is included in your quotes from solicitors, agencies, online listing portals and anyone else involved in selling your home.
Repairs or redecorating
Carrying out maintenance and improvements is not only a great way to boost value, but it also helps to sell your home fast. However, even cosmetic changes cost money, and more substantial structural repairs are even costlier. Failing to carry out these repairs can result in buyers pushing for a discount, which can put you at a loss, so it’s worth investing in the work yourself to sell your home for market value. If you need help from professional contractors or surveyors, remember to budget for their services as well as the work that needs to be carried out.
The government mandates that an Energy Performance Certificate (EPC) is required when a property is sold, and should be procured before the property is marketed. The report contains important information the property’s energy usage and average costs, and can be obtained from an accredited residential energy assessor. You can use the government EPC register
to search and find the nearest one to you, and regarding your budget, you should expect to pay anywhere from between £60 to £120
for the report.