"We’ve estimated that sellers need to pay a huge £18,500 to sell their property, but know some of these costs can be negotiated down to reduce fees"
- Oren Kander, senior valuer and director at Gaffsy
Property-buying specialist, Gaffsy, has revealed the hidden costs of selling a home, so sellers can factor the amount in and alleviate some of the stress of moving.
Estate agent fees
Typically, estate agents vary between 1% and 3.5% of the property price, depending on how many agents are involved in selling your property. As of 2016, estate agent fees should include VAT, so check beforehand if this isn’t clear.
In June 2024, the average cost of a home in the UK was £288,000 - so property sellers should expect to pay between £2,880 and £10,080. However, if you are only using one agency then you can haggle down to around 1% - estate agents will expect this.
Solicitors
Solicitors often range in price depending on whether the property is freehold or leasehold, the property price, the complexity of the transaction and the location. You’ll need to know whether the solicitors are using a fixed fee, a pre-agreed upon amount, or if they charge by the hour as this can drastically change the fee.
The average cost for a solicitor is currently £2,003. If you’re buying and selling a home simultaneously and using the same solicitors, you might be able to reduce your fees and negotiate accordingly.
Mortgage fees
You’ll need to consider whether to port your existing mortgage or take out a new mortgage. Sellers typically port their mortgage due to having a low interest rate deal, or have a product that has an early repayment fee. You’ll also need to be aware of any mortgage exit fees, as these can quickly add up. For example, if you had a £120,000 mortgage with a 4% exit fee, you’d need to pay £4,800.
Surveys
Whilst surveys aren’t mandatory in the house buying process, it’s recommended to get one to ensure there are no issues or reg flags that could become bigger problems in the future. Typically, house surveys are for the buyer to arrange, but some sellers decide to pay for a survey to identify and resolve issues before the buyer's survey. Anything in a survey can be used to ask for a reduced price on the property and therefore could be more costly not to get one as a seller. Surveys cost between £400 and £1,500 depending on the location, the type of survey you have and the property’s value.
Other costs to be aware of
If you’re selling a property that isn’t your main home, you’ll need to pay Capital Gains Tax which is charged at 10% or 18%.
Another cost is gaining an EPC (Energy Performance Certificate) which is required by law to provide when selling your property, which costs between £60 and £120.
By being aware of these hidden costs, you can budget more effectively and avoid potential surprises during the selling or buying process.
Oren Kander, senior valuer and director at Gaffsy, commented: “Selling a home can be incredibly expensive and knowing how much to save and account for is useful for property sellers. There are many hidden costs with property selling and knowing about them can help alleviate the stress associated with selling your home. We’ve estimated that sellers need to pay a huge £18,500 to sell their property, but know some of these costs can be negotiated down to reduce fees and companies will expect you to do so.”
