A little while ago, we wrote a piece all about the hidden costs of buying a new property. It looked at all of the little things you probably wouldn’t consider (or even know about) that tend to creep up during a property purchase, as well as where providers in the process like to hide fees. Today, we want to look at the other side of the coin, and do the same thing for sellers! Because there are plenty of things you might not have considered about selling your property, all of which could eat into the total price you end up getting for it, or the money in your pocket when it’s all done. All of which could change how much you decide to sell your house for, so it’s important to bear them in mind.
Mortgage Costs
Yep, mortgages are still part of the process! Moving from one property to another, and maybe even from one lender to another at the same time, can bump up the cost of selling a property. It often depends on the specifics of your mortgage and your provider, but it’s quite common to face early repayment charges if you redeem during a fixed interest period. These are usually between 1% and 5%, and can be quite hefty depending on how much of your mortgage is left to pay off.
If you have a portable mortgage, or a standard variable rate, then these can be avoided, but you will need to check with your mortgage provider to be sure.
Conveyancing Fees
Fees for conveyancers don’t just apply to the buyer. The seller has to pay for their side of things too! These fees tend to vary depending on the value of your property and who you work with, but recent figures suggest that the legal fees alone can range from £800 to over £1,500. On top of this, there are often individual fees applied to different stages of the process, so you’ll need to have enough in the bank to cover:
Bank Transfer Fees (around £20-£60)
Title Deeds (around £25)
Management Packs (these can be costly!)
The best thing to do here is ask every provider you work with for a detailed breakdown of costs before you start so that you can plan out what you need, and choose the right provider for you.
Renovations
If you’re preparing to sell your home, you want it to look as good as possible so that you get more money for it. Many homeowners will spend a few months doing all the renovations they’ve been meaning to do for the past few years in one go, and sometimes spending a lot more than they meant to in the process! And yes, a newly renovated home can drive up the asking price, but doing the renovations will cost you money first. So whether you want to redo the worn out kitchen or give the whole house a new lick of paint, you’ll need to factor the cost of that into the asking price before you put your house on the market.
Annoying Little Extras
Then, of course, there are the annoying little extras that no one ever tells you about. For example, if you decide to use a removals service (and most people do), then their prices will vary depending on how far you’re moving, what you’re moving, the level of service and even the time of year. Getting a quote ahead of time will help make sure you don’t end up overpaying.
You’ll also find that your utility providers will probably hit you with a big final bill, especially if you’ve been on estimated bills while in the property. This is one of the reasons we suggest keeping a log of your gas and electric meters so that you can contest and manage this – though the paperwork can be a little tedious!
Finally, you’ll need at least a temporary redirect on all of your post while you get the addresses changed over. The Post Office can provide this, but it isn’t free. In fact, it can cost anything up to £100 depending on how long the redirection is for and how many people’s post is being redirected. It’s quite a small cost compared to the rest, but still worth planning for.
At Hudson Conveyancing, we believe that honesty is the best policy. We’re here to make sure you fully understand the process of both buying and selling your home, and to make sure you avoid any pitfalls that could cost you money in the long run. Our experts will always let you know if we think something can be done differently, and can guide you through the process in plain English. If you’d like to know more, just get in touch with the team today.
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