"Sellers not only have a raft of costs to consider when selling up, but all too often, they will be hit with a second wave of costs when it comes to their onward purchase"
House Buyer Bureau analysed all of the common costs associated with selling a home in today’s market conditions, from agency fees to removals, before factoring in all the costs needed to pursue an onward purchase.
The cost of selling
Efficiently selling a home on the open market requires the assistance of a good estate agent. In today’s market, the average UK estate agency fee is 1.5%. With a current average house price of £287,506, this comes to £4,313.
Bear in mind that some agents, especially those in high-end markets, might charge a higher fee; and act with caution when approached by agents who charge significantly less.
A seller also needs to pay conveyancing fees to take care of all the required legalese and disbursements, as well as pay for a solicitor’s time and expertise. On average, this comes to £780.
Once the sale is complete and you’re moving out, there’s the additional cost of removals. The price is largely dependent on the number of possessions that need transporting and how far they need to go. But on average, you can expect to pay £826.
In total, all of this costs the seller £5,918.
The cost of an onward purchase
More often than not, a seller is also a buyer, so the cost of moving home continues with their onward purchase.
For buyers, the conveyancing process is more detailed than it is for sellers and therefore costs more. On average, you’re looking at an outlay of £1,679.
On top of this, there are likely going to be property survey costs to cover which will come to an average of £661, and then another £330 is required for the mortgage provider’s own valuation of the home.
In total, all of this costs the seller an additional £4,545.
The total cost
When all of this is combined, the cost of selling a home comes to £10,464, so sellers need to have this money set aside and easily accessible.
But that’s not where it ends. An onward purchase is also going to require a mortgage deposit on their new home.
At 15% of the property’s value - and at today’s average house price - this comes to £43,126.
Therefore, the total cost of selling a home in today’s market, once you’ve considered the sale of your own home as well as your onward purchase, comes to a lofty £53,589
Managing Director of House Buyer Bureau, Chris Hodgkinson, commented:
“It’s no secret that the property transaction process is expensive. Even if you disregard the actual price of a house, there are legal fees and taxes to pay on top which can really rack up.
"But what’s less discussed is how expensive it is to sell a home. Sellers not only have a raft of costs to consider when selling up but all too often, they will be hit with a second wave of costs when it comes to their onward purchase.
"Of course, many have accumulated equity in their current home which helps cover the high cost of homeownership and allows them to bridge the gap between one property and the next. However, this is still hard-earned equity they have spent years accumulating and so stomaching the high cost of selling up and moving on is still a tough one to take.”
