Selling your home can be a costly experience.
The majority of people still use their local estate agent without even enquiring about the selling fees involved! And in the words of Les Dennis “Our survey said…” – err err!
Choosing an estate agent has the largest financial impact when selling your home, so choose wisely! There are one or two other potential costs that need to be considered when selling your home, so read our guide below to obtain a quick overview.
Estate Agent Fees
How much do estate agents charge? Unfortunately estate agent fees can vary massively. Some estate agents charge commission, which is a percentage of the sale value. For a property that sells for £250,000, based on a 1.5% commission fee it would cost you £3,750 in estate agent fees. Extortionate if you ask us.
Then there are flat fee online estate agents (largely known as hybrid estate agents) that do a similar job but don’t have a high street presence. They usually charge a one-off fixed fee of around £1,000. This provides better value, but is still on the expensive side.
Finally we have the best of both worlds; Investate is a tailor-made estate agent where you can save hundreds, if not thousands of pounds. See why you should use Investate to sell your home, check how much you can save using our savings calculators and keep an eye on our pricing options.
Energy Performance Certificate (EPC)
An EPC reveals just how energy efficient (or indeed not!) a property is. The rating is from A (very efficient) to G (very inefficient). An EPC is a legal requirement in England, Wales and Northern Ireland.
If the property isn’t very energy efficient it may require additional expenditure to run (gas and electricity bills) or upgrade, and hence a buyer would need to factor this into their offer. The cost of an EPC typically ranges from £50 to £150.
Home Report (Scotland Only)
For people selling their home in Scotland, a Home Report is required and must be provided by the person selling the property. This report consists of a survey (detailing the condition of the home, a property valuation and an accessibility assessment), an energy report (how efficient the property is at utilising energy) and a property questionnaire (council tax band, parking facilities, alterations etc). Home reports typically cost between £500 and £700 and we’d recommend obtaining it from a qualified member of the Royal Institution of Chartered Surveyors (RICS).
Capital Gains Tax
If you’re lucky enough to own more than one property and the property you are selling is not your primary residence, you will be required to pay a capital gains tax on the gain that you make upon selling your property.
The first £11,100 (after selling fees such as estate agent fees and legal fees) is exempt from tax. If you’re a higher or additional rate taxpayer you’ll pay 28% of your gain. If you’re a basic rate taxpayer you’ll pay from 18% upwards, depending upon the size of the gain.
Legal Costs
Once again you will need to pay for a conveyancing solicitor to carry out legal works. When you are selling a property you do not need to pay for any local searches or land registrations. However you may be charged for a bank transfer when receiving the funds for the sale of your property. The cost of a conveyancing solicitor can range from £300 to £2,000 depending upon the size and value of the property.