A Complete Guide to the Costs of Selling Your Home in 2024

It’s important that you understand the full cost of putting your property on the market. It could be more than you initially thought. 

You need to take into account the changes involved as well as taxes etc.

In the current property market, the prices tend to fluctuate so it’s vital that you get a true understanding of the figures.

Often selling your house for cash can reduce costs and leave you with more money in your pocket.

In this guide, we will take a look at what costs are involved when you sell your home. 

The Cost of Selling a House in 2024

Here's an overview of the common costs associated with selling a home:

Estate Agent Fees

Estate agents charge a commission for their services, which typically include marketing the property, arranging viewings, and negotiating the sale. 

This fee can vary but is usually between 1% to 3% of the final sale price, plus VAT.

Conveyancing Fees

Conveyancing refers to the legal process of transferring property ownership. 

Conveyancers or solicitors charge a fee for this service, which typically ranges from £500 to £1,500, depending on the complexity of the sale and the region.

Average fees when selling include:

• Freehold with no mortgage - Approximately £575
• Freehold with a mortgage - Approximately £612
• Leasehold with no mortgage - Approximately £768
• Leasehold with a mortgage - Approximately £805

Auction Fees

Selling a house via auction in the UK involves various fees and costs. Here are the primary fees you should consider:

• Auctioneer's Commission - This is typically a percentage of the sale price, usually ranging from 1.5% to 3% plus VAT. The exact percentage can vary depending on the auction house and the value of the property.

• Entry Fee - An upfront fee to cover the costs of cataloguing, marketing, and advertising the property. This fee can range from a few hundred to a couple of thousand pounds, depending on the auctioneer and the marketing package chosen.

• Legal Fees - You will need a solicitor to handle the legal aspects of the sale, including preparing the auction pack. Legal fees can vary widely but typically range from £500 to £1,500 plus VAT.

• Auction Pack Fee - The cost of preparing the auction pack, which includes title deeds, searches, and other necessary documentation. This can cost between £200 and £500.

• Administration Fee - Some auction houses charge a separate administration fee, which can be a fixed amount (e.g., £300-£500) or a small percentage of the sale price.

• Marketing Fee - Additional marketing costs might be incurred if you opt for enhanced advertising or promotional packages. These fees vary based on the extent and reach of the marketing campaign.

• Buyer's Premium - In some cases, auction houses charge a buyer's premium, a fee paid by the buyer that is a percentage of the sale price (usually around 2% to 5% plus VAT). While this does not directly affect the seller, it can influence the final sale price and the attractiveness of the property to buyers.

Survey Fees

While typically the buyer's responsibility, you may choose to commission a survey to identify any potential issues beforehand. 

Survey fees can range from £250 to £600 depending on the type of survey e.g. HomeBuyer Report, full structural survey.

If any specific issues are identified, you might need specialist surveys such as damp surveys, timber decay surveys, or asbestos surveys.

These can cost £200 - £1,000 depending on the type and extent of the survey.

Factors influencing the cost of surveys:

• Size and Age of the Property - Larger or older properties generally cost more to survey.
• Location - Survey costs can vary depending on the region within the UK.
• Surveyor’s Expertise - More experienced or specialised surveyors may charge higher fees.

Energy Performance Certificate (EPC) Cost

An EPC is required by law to sell a property and assess the energy efficiency of the home. The cost of obtaining an EPC is usually between £60 and £120.

You can find an accredited EPC assessor through the government's EPC register website. Alternatively, some estate agents and property management companies offer EPC services.

It’s recommended to use a certified Domestic Energy Assessor (DEA) or an accredited organisation to ensure the EPC is valid.

The assessor will visit your property to conduct an inspection, which typically takes about 45 minutes to an hour for an average-sized house.

They will evaluate factors such as insulation, heating systems, and windows to determine the property's energy efficiency.

After the assessment, you should receive the EPC within a few days. The certificate will be valid for 10 years and must be available to prospective buyers.

Do You Have a Mortgage While Selling?

When selling a house in the UK, there are several fees associated with paying off your existing mortgage. Here are the primary costs you should consider:

Early Repayment Charges (ERC)

If you pay off your mortgage before the end of the agreed term, you may be subject to an early repayment charge.

This charge can be significant, often ranging from 1% to 5% of the outstanding mortgage balance, depending on how many years are left in your mortgage term and the conditions set by your lender.

Mortgage Exit Fee

Also known as a "deeds release fee" or "admin fee," this is charged for closing your mortgage account and transferring the deeds.

Typically between £50 and £300, depending on your lender.

Removal Costs

Moving out of the sold property involves removal costs.

These costs vary depending on a number of factors:

• Size of Property - Larger properties with more belongings typically cost more to move.
• Distance - The distance between the old and new property affects the cost, with longer distances incurring higher charges.
• Volume of Goods - The total volume and weight of items being moved can influence the price.
• Access - Difficult access at either property, such as narrow stairs or limited parking, can increase costs.
• Additional Services - Packing, disassembly, and reassembly of furniture, or the provision of packing materials, can add to the cost.

Average Removal Costs

• 1-2 Bedroom House: £300 - £600
• 3-4 Bedroom House: £600 - £1,200
• 5+ Bedroom House: £1,200 - £2,000+

By planning ahead, comparing quotes, and considering what services you truly need, you can manage these costs effectively.

Capital Gains Tax (CGT)

If the property you are selling is not your primary residence (e.g., a second home or an investment property), you may be liable for capital gains tax on any profit made from the sale. The tax rate varies:

• For basic rate taxpayers, CGT is 18% on residential property.
• For higher and additional rate taxpayers, CGT is 28%.

You can also deduct certain allowable expenses from the profit to reduce your CGT liability.

Limit Your Fees with Faster Property 

The sale of your home can involve quite a lot of fees that you may not have already been aware of.

After reading this blog we hope that you now have a better understanding of these fees.

If you want to sell your house fast and want to avoid certain fees then Faster Property can help you.

We buy homes with cash so we can act quickly and make the sale happen within 7 days if no issues arise.

If you would like to learn more about our services then please get in touch with us.