Navigating the Financial Side of Selling Your Home
It’s commonly said that a house is the most expensive thing most of us will ever buy – but it’s not so often mentioned that it’s also the most expensive thing most of us will ever sell as well. Making sure you get the best possible price for it is therefore essential – get it wrong and you could be out of pocket by several thousand pounds.
But there’s more to selling a house than simply agreeing a price and pocketing the proceeds (or, more usually, using them to buy your next home).
This month, the team at Robert Ellis Estate Agents is looking at the real cost of selling a house, providing everything you need to know to help you find your way through the financial maze that comes with selling property in the UK.
Getting an accurate valuation
The starting-point for any successful house sale is putting it on the market at the right price. Market it at too high a price and you’ll probably scare off potential buyers. Market it at too low a price and you could end up losing thousands of pounds.
When deciding which estate agents to ask to value your home, make sure you ask friends and family in the area for their recommendations on ones they’ve had a good experience with in terms of getting the right price for their home within a reasonable time period.
Here at Robert Ellis, some of our valuers have been working in the area for over 20 years. We’re sure that you won’t find any other estate agent with both the right local knowledge and the commitment to making sure that you’re totally happy with the final price.
Agreeing a price with your buyer
When someone is interested in buying your home, they’re unlikely to offer the full asking price immediately unless there’s a lot of interest, so you may well have to negotiate.
How quickly you want to make the sale will have an effect on how far you’ll be willing to go under the asking price, but a good estate agent will keep you up to date on the interest you’re getting and be able to provide advice on the best way to proceed. Don’t forget that in most cases, the higher the sale price, the higher their fee, so they do have an interest in getting the best value for you!
The other thing that may affect the final price is the survey on your property – if it turns up a major issue that wasn’t obvious at the viewing, your buyer is likely to want a drop in the price to reflect the cost of putting it right. Of course, you don’t have to agree to their request, but the chances are that the same will happen with any other potential buyers who come along afterwards.
The costs of selling a home
- Estate agents fees – most estate agents charge a percentage of the final selling price, so you’ll need to remember to subtract this from what you get from the sale (don’t forget to take VAT into account as well). Some companies charge a flat fee from the outset, but once they’ve got their money, you might reasonably wonder whether they have the same incentive to achieve the best possible price for you.
- Conveyancing fees – whether you’re buying, selling, or doing both at the same time, you need to take into account the cost of a solicitor to do the legal work. When you’re selling, this could include negotiating with your buyer’s solicitor over any issues, switching or paying off your mortgage, and drafting and exchanging contracts. If your property is leasehold, this is likely to mean more work for the solicitor and a higher cost for you.
- EPC – if you don’t already have an EPC (Energy Performance Certificate) for your property, you’ll need to have one prepared before you can sell it.
- Removal costs
- Mortgage – whether you’re transferring your mortgage to a new property or paying it off completely, you may need to pay administration fees or early completion charges. Check with your mortgage provider to find out what you’ll have to pay (if anything).
- Capital Gains Tax – this only applies if the property that you’re selling is not your main residence. If you are liable, it will be based on the difference between what you bought it for and how much you sell it for, although you can offset the costs of buying and selling it, along with the cost of any improvements you’ve made.
When you choose Robert Ellis Estate Agents to market and sell your home, you won’t only be getting some of the best local knowledge in the business, unrivalled levels of customer care and the best and most effective modern marketing tools on your side. We’re also committed to being totally transparent regarding any costs you’ll need to pay and are determined to make sure you get the possible price for your property within your preferred timescale.
Start the process of selling your home by getting a valuation from Nottingham’s Number 1 Estate Agent today. Fill in our online form now to arrange a free valuation or get in touch by calling your local office for more information.