What Are the Costs of Selling a House?

When someone asks, "How much will I get from selling my house?", most people start with the obvious calculation.

Sale price minus mortgage.

Done.

Unfortunately, there are a few more costs to consider.

Knowing what they are before you put your property on the market means there should be fewer surprises later.

Estate agent fees

Your estate agent will charge a fee for selling your property.

The exact structure varies between agents, so make sure you understand what you're paying and what is included.

Marketing, photography, floorplans and other services may form part of the package, but this differs between agencies.

It's worth comparing the overall service rather than simply looking for the cheapest percentage.

Solicitor or conveyancer

You'll need a solicitor or licensed conveyancer to deal with the legal side of your sale.

They'll prepare the legal paperwork, deal with the buyer's solicitor and work towards exchange and completion.

Ask for a full quote at the beginning so you understand what is included.

EPC

You'll normally need a valid Energy Performance Certificate when selling a property.

If your existing EPC has expired, you'll need to arrange a new one.

Your mortgage

If you have a mortgage outstanding, the balance will normally be repaid from the sale proceeds.

You should also check whether your mortgage has any early repayment charges.

If you're buying another property at the same time, speak to your mortgage adviser early so you understand your options.

Preparing the property

This is where sellers can easily spend more than they need to.

You might decide to decorate, carry out repairs, hire a cleaner, improve the garden or put belongings into storage.

Some of these costs can be worthwhile.

Others may not.

Before spending a significant amount, ask whether it will genuinely help you achieve a better result.

Removals

Then there's the actual move.

Removal companies, van hire, storage and packing materials can all add to the final bill.

Get quotes early, particularly if you're moving at a busy time of year.

Capital Gains Tax

For many people selling their main home, Capital Gains Tax won't normally apply because of Private Residence Relief.

However, different rules can apply to second homes, investment properties and properties that haven't always been your main residence.

If you're unsure about your position, speak to a qualified tax adviser.

So, what will you actually walk away with?

The best way to work this out is to create a simple calculation:

Expected sale price

minus mortgage balance

minus estate agent fees

minus legal costs

minus other relevant costs

= estimated amount available to you

If you're moving on to another property, this figure can then help you work out your next budget.

The important thing is to plan ahead

The sale price is only one part of the equation.

Before putting your property on the market, get a realistic valuation, speak to your mortgage provider and ask your solicitor for an idea of legal costs.

Knowing your numbers from the beginning makes the whole process much easier.