Hidden Expenses You Didn’t Anticipate When Selling A Property: A Quick Guide for Homeowners
Everyone looking to sell a home is aware of the common costs associated with selling a property; some of these include estate agent and conveyancing fees, removal costs, and taxes. However, there are several costs hidden among these that catch you by surprise, and to avoid any last-moment inconveniences during your house sale process, it’s better to familiarise yourself with them. This article explains the hidden costs of selling a property and how much they can add on top of the prices you’re already expecting. Let’s get into it.
5 Hidden Costs Of Selling Residential Property
In the past year, the UK has witnessed a fall in house prices by 1% – making this the first annual decline since 2012. Considering this, homeowners looking to sell their homes are pacing up before the prices drop further.
One of the common mistakes when selling a property is not accounting for hidden costs, and these are the five common ones:
Energy Performance Certificate
The EPC is a government-mandated certificate that ranks your property’s energy efficiency and use every 10 years, with A being the most efficient and G the least. Getting the EPC is relatively cheap, with the costs ranging between £35 – £150 + VAT. Having the EPC is legally required before putting your house on the market and also increases the chances of selling it. When you instruct Jacobs Steel to sell your property, we will make sure you have a valid EPC certificate, or guide you to the right professionals to get you a new one.
VAT
Your estate agent’s fee is hardly a hidden cost, but the VAT charged on their fees can come as an unpleasant surprise because it’s currently set at 20%. Similarly, some conveyancing solicitors may not include the VAT in your quoted fee, so clarify whether it’s included or not to get an accurate idea of your selling costs. Conveyancing charges also vary depending on whether it’s a leasehold or freehold property; in the case of leaseholds, the charges are higher, and it’s important that you apply for an extension to avoid paying an extra £300-£800 for a Leasehold Management Pack.
Mortgage Early Repayment Charges
Commonly referred to as ERCs, mortgage early repayment charges apply when you decide to pay off your mortgage before it’s fixed term. If you’re planning on selling your home before completing your mortgage contract, be prepared to pay ERCs because it can be a hefty expense, which is usually between 1-5% of the outstanding mortgage.
Preparation For Staging
Home improvements, repairs, and upgrades are necessary when your isn’t in good condition, and a benefit if you want to sell your house faster, but these adjustments come with additional costs. You might have to hire cleaning services or do renovations which can cost anywhere from $500-$5000 based on the complications or amount of work that needs to be done.
Moving Costs
Apart from the fees related to the house you’re selling, you’ll also have to move your own things to your new place, and that can be a special cost that no one thinks about. You need to ensure the property doesn’t have any of your belongings to avoid any confusion, and this can cost anywhere between £400 – £1,200, depending on your property’s size and location.
These hidden costs aren’t set in stone. Selling a house is a tedious process involving tiny costs everywhere, some cheaper than others, making it crucial that you’re aware of as many of them as possible. We hope knowing about these five costs will make your selling process a stress-free and smooth one, but if you have any questions or would like a deeper discussion on the costs of selling your property, get in touch.
