The increasing costs of selling your home

Selling a house can be an expensive business. From estate agent fees to early repayment penalties from your mortgage lender, the costs soon add up. What’s more, around 30% of house sales fall through and this ratio is likely to increase as more sellers withdraw from sales due to the cost of living crisis. A failed sale costs sellers an average of £2,727 in unrecoverable legal and marketing costs. Unfortunately, selling on the open market leaves homeowners vulnerable to a failed sale, as the buyer is legally entitled to change their minds until the exchange of contracts occurs. Unless the seller chooses to take the house off the market, they will have to bear the costs of selling again when they find a new buyer.

In this guide, our property experts have broken down the costs involved in selling a house in the UK. We’ll also give you some tips on how to reduce these outgoings and enjoy a hassle-free move.

Why Knowing the Costs is Important

Firstly, you need to know what you’ll have to pay for so you can avoid any nasty surprises and budget properly – this also helps make the already high levels of stress of selling a house more manageable. When you have a clear picture of all the expenses, you can make better decisions about how you want to handle the sale, e.g. you might decide that spending a bit more on repairs will help you get a better sale price, or you might find that a quick sale to a cash buyer would be better overall.

Also, once you know what to expect, you’re in a better position to negotiate fees with estate agents and solicitors etc. – it’s harder to get overcharged when you know the going rates! Knowing all the costs helps you maximise your profit by minimising unnecessary expenses.

Essential Selling a House Costs

The cost of selling your house will vary depending on its value and the services you personally choose to purchase. However, most homeowners selling on the open market will incur the following costs:

• Estate Agent Fees
• Conveyancing Fees
• Energy Performance Certificate (EPC)
• Removal Company Costs
• Remortgaging or porting a mortgage (if you need financing to buy another property)

According to the UK House Price Index, the average price in England as of August 2020, is £256,000. Selling a house at this price could cost between £5,065.80 and £7,720.80:

Estate Agent Fees Based on the average rate of 1.43% for a high street agent.	£3,660.80
Conveyancing Fees Fees will vary and solicitors typically cost more than conveyancers. Figures from HomeOwnersAlliance.	£500 – £11,50
Energy Performance Certificate All sellers must apply for this before putting their home on the market. Figures from MoneySupermarket.	£60 and upwards (inc VAT)
Removal Company Costs These can vary wildly depending on the size of your property and the level of service you require. Figures from Which?	£100 – £1,150
Remortgaging or Porting Your Mortgage You can take out a new loan to buy another property or take your existing mortgage with you (porting). Remortgaging is typically more expensive.	Porting – up to £450 for a valuation Remortgaging – £1,000+

Estate Agent Fees

If you choose to sell your house through an estate agent you have plenty of options. The type of agency you use will impact the price you pay.

In general, high street estate agents are more expensive than online and hybrid agents. This is probably because the former have higher operational costs than the latter. However, a high street estate agent’s local knowledge could put them in a better position to market and sell your property more quickly and for a higher price, saving you money in the long run. Furthermore, recent research by The Advisory has revealed that online estate agents fail to sell 50 per cent of all the homes they take on, leaving the seller to pay twice — once to the online estate agent and once to a high street estate agent when the former fails to secure a sale. High street estate agents typically operate on a “no sale no fee” basis too.

You can avoid all estate agent fees by selling to House Buyer Bureau. Take a look at this cost comparison between an open market sale with an estate agent and a discreet sale to us or contact us to get your cash offer.

Conveyancing Fees

You’ll need to instruct a solicitor or a licensed conveyancer to deal with all the legalities involved in selling a property. Conveyancing costs include your solicitor or conveyancer’s fee and conveyancing disbursements. You’ll be charged a fixed fee or a percentage of the value of your property.

Conveyancing fees include:

• Legal Fee — your solicitor or conveyancer’s fee.
• Disbursement Fees — fees that your conveyancer pays on your behalf for third-party services.
• Land Registry Documents — obtaining the official documents required to prove that you are the legal owner of your property and therefore entitled to sell it.
• Bank Transfer Fee — this covers the cost to your conveyancer of transferring funds, for example, to pay off your mortgage or paying the balance of the sale into your account.
• Money Laundering Checks — your conveyancer will run checks to verify the identity of your buyer.

Additional Costs to the Seller

Further to these basic costs, a homeowner may choose to complete repairs and home improvements before selling. These can add considerably to the cost of selling, although some of the money invested may be recouped via a higher sale price.

You may also opt to have your own survey done. While there is no obligation for a seller to pay for a survey — a cost typically borne by the purchaser — it can boost the chances of selling. If a survey highlights problems with your home, you can address these before the property goes on the market. If a buyer’s survey throws up issues after their offer has been accepted, this can result in delays, renegotiations and a failed sale. A survey can also help you to set a realistic asking price. Recent research has shown that properties that are priced correctly from day one on the market sell much quicker than those that are originally priced too high and then reduced. A homebuyer report costs £500 on average.

If your property has increased in value since you bought it, you may be liable to pay capital gains tax (CGT). Usually, if you are selling your only home, CGT will not be payable, but it’s worth checking. The rate varies depending on the size of the gain and your income.

How to Reduce the Cost of Selling Your House

Here are our top tips for keeping house selling costs down:

• Use a Conveyancer Instead of a Solicitor — conveyancers are typically lower cost than solicitors yet both perform the same role in house sale transactions. However, do your research and be sure to find a licensed professional with good recommendations.
• Port Your Mortgage Rather Than Remortgaging — if porting your mortgage is an option and the terms are good, this will probably be cheaper than finding a new deal. Porting typically only incurs a cost of up to £450 for a valuation, whereas remortgaging is likely to include a hefty arrangement fee — £1,000 to £2,000 is common — and a booking fee — £100 to £250 — on top of the valuation fee.
• Keep Removal Costs Down — quotes can vary widely between companies. Shop around and get at least three quotes. Most house moves take place on a Friday or a Monday so booking a removal company on these days attracts a higher fee. If you can, aim for a mid-week move to attract lower quotes. Some removal companies offer discounts to certain groups of people, such as OAPs, students and those who work in the armed or emergency services. If you’re moving from a small property, it may even be possible to cut this cost dramatically by hiring a van and moving yourself.
• Sell without an Estate Agent — the estate agent’s commission is often one of the homeowner’s biggest expenses when selling a house. You can sell your house privately without using the services of an agency and cut this cost completely. Alternatively, by selling to House Buyer Bureau you can avoid both estate agent and solicitors fees. Find out more about how our service works.

• Swap Estate Agents or Go Solo — agent fees vary considerably. Shop around to find the best deal or negotiate with your current estate agent. If your home is high-value or you are willing to agree to a sole agency contract, the agent may well accept a lower percentage of the sale price. You can also save a considerable amount by switching to an online estate agent, as these are generally more affordable than high street agencies. However, don’t forget to factor in an agent’s success rate when choosing one (or more) to represent you; this is typically lower for online agencies. No rule book states a homeowner must engage the services of a professional estate agent to sell their property.
• Use an Existing EPC — if you bought your home less than 10 years ago, you might be able to use the certificate purchased by the previous owner and avoid this cost. If you’ve made significant improvements to the property that have impacted its energy efficiency, it’s worth paying for a new EPC even if the current one is still valid, as it could make your property more appealing to buyers.

House Sale FAQs

What are the average costs of selling a house?

On average, the total cost can range from 0.75% to 3% of the property’s sale price. The average costs of selling a house can vary depending on various factors such as the sale price, location, and the type of property.

Do you pay stamp duty when you sell a house?

No, stamp duty is only payable when buying a property. When you sell a house, you do not have to pay stamp duty.

What costs are sellers responsible for during a property sale?

The costs that sellers are responsible for during a property sale may include the following:

• Estate agent fees
• Conveyancing fees
• Energy performance certificate (EPC) fees
• Removal costs
• Mortgage fees (if applicable)
• Capital Gains Tax (if applicable)
• Repairs or maintenance costs (if any)

Do I have to inform HMRC when I sell my house?

Yes, you need to inform HMRC of the sale of your property, and you need to do so within 60 days of completion. Typically, your conveyancing solicitor will do this for you. If you have made a profit on the sale of your house, you may be liable to pay Capital Gains Tax (CGT). You should inform HMRC by filling in a Self Assessment tax return.

However, if you are selling your main residence and meet certain criteria, you may be eligible for Private Residence Relief and will not need to pay CGT.

It’s always best to consult a tax professional or accountant for specific advice.

Can I sell my house without an agent?

How can House Buyer Bureau help?

Selling a house doesn’t have to be a headache. If you’re looking to sell quickly and want to avoid many of these costs, House Buyer Bureau offers a hassle-free alternative. We buy houses for cash, handling the process efficiently so you can move on with peace of mind. You won’t pay estate agent fees or solicitor fees (if you use one of our recommended solicitors), and you can sell your house in as little as 7 days (or longer if you need to). Get in touch today to get your offer.