Thinking about selling your home in East London? You might be moving to a bigger space, relocating, or simply want to capitalise on the soaring property value. No matter what your reason is, one thing that comes as a shock to many sellers is just how expensive the process of selling a home is.
Selling your property is more than just handing the keys over and reaping the benefits. There are numerous fees and costs to consider, including closing costs, commission fees, and decluttering expenses, as well as many other hidden costs that can be easily overlooked. That is why it is so important to know the costs upfront.
So let’s break it down into simpler details – starting with listing your property with an estate agent.
Estate Agent Fees: The First Big Chunk
The modern way of selling properties today uses estate agents as intermediaries. If you’re moving in this direction, be sure to set aside some funds for them.
For example, estate agents in East London charge somewhere between one or three percent of the selling price of the flat and then add VAT. That translates to a fee ranging from £4,800 to £14,400 if a flat is sold at £400,000.
Take a deep breath; good agents really earn their keep. They’ll promote, showcase, and handle all the tough negotiations with prospective buyers. It’s all about much more than just putting your property up on a site.
If you’re juggling a rental property along with the sale, it might be time to speak with a property management agent in East London. They will enable you to focus on selling while ensuring everything runs smoothly.
Legal Work: Closing Costs
You cannot sell a property without completing the necessary legal paperwork first. This is where a conveyancer or solicitor comes in. They will oversee the contracts and the seller, ensuring compliance with all parties' obligations.
How much? Typically from £850 to £1,500, depending on property type. Lastly, flats under leasehold have extra legal work, which increases the costs.
Sure, you could take the lowest quote, but this is one area where you do not want bargain basement service. A slow or negligent solicitor can make the whole sale take forever and cost you so much more in wasted time and lost buyers.
EPC (Energy Performance Certificate): You'll Need One
You cannot list your house on the market before getting an accurate Energy Performance Certificate (EPC). This certificate ranks your home’s energy efficiency from A-G, A being the most efficient and G being the least.
The good news? It's economical. Ranging from £60-£120, it can last you a decade. If you've recently sold or rented out your property, chances are, you already possess one. If not, obtaining them online is a convenient option.
Got a Mortgage? Watch Out for Extra Charges
If you are still actively paying a mortgage, you might face some early repayment charges (ERCs) if you are trying to clear the loan before the term ends. These ERCs can incur a fee of 1%-5% of your remaining mortgage.
In addition, some lenders might also impose a mortgage exit fee of £50 to £300 simply for closing your account.
Finishing off a mortgage? A couple of steps before you officially put the “For Sale” sign up is to consider talking to your lender and finding out what your potential expenses are. These surprises are the last thing one would want.
Moving Costs: Boxes, Vans and Stress
You’ve already sold your place; now you have to move out. A removals company will charge you between £500 and £ 1,500, depending on the amount of furniture you have. Hiring a van and getting friends to help will make it cheaper, but the stress that comes with it is hard to quantify.
If someone’s moving house, they usually have a place ready to move into, but not always. If the new place isn’t ready immediately, the old place will require storage, which is expensive.
Capital Gains Tax: Do You Need to Pay It?
If the property you are selling is your main home, you probably won’t pay Capital Gains Tax (CGT).
But if it’s a buy-to-let or a second home, then you most likely will pay taxes on the profit of the sale, and the amount will depend on your income and how much profit you make.
This area is where expert help makes a big difference. Good property management companies can walk you through it and all the ways you can legally reduce what you owe by applying the right allowances.
Should You Fix It Up First?
Most sellers ask, “Should I spend money on fixing up the place before selling?” The answer depends on a few factors.
You don’t have to go all out, but detailing tasks like fresh paint, cleaning carpets, or patching up cracked tiles can make a big difference. It helps in portraying the overall impression of “cared for” which may help in fetching a better price or selling quicker.
A Property Management Agent in East London can help if you are struggling with where to spend and where to save. With their experience, they will be adept at understanding what matters to buyers and what isn’t worth their time and investment.
Other Small Expenses That Accumulate
These are some of the additional unexpected expenses that you might need to consider:
For Leasehold properties: The freeholder can charge anywhere from £200 to £600 for a leasehold information pack, which can be billed to your solicitor for onward submission to the client’s attorney.
Final Cleaning: It will generally cost you an extra £150 to £300 if you hire a professional for deep cleaning after you have rented the space out.
Redirecting mail and new utility installations: These might seem negligible, but they can add up quickly.
Is Using a Property Management Company Worth It?
They are well-known to be property management companies, but in reality, their function extends beyond that. When renting out your property or residing somewhere else, a hands-off approach can be challenging. They will manage tenant acquisition, prepare the property for sale, and even make follow-up calls to gather necessary documentation.
Additionally, knowing the local market really helps in setting the right price, which gives one an edge and enhances the chances of selling the property more quickly.
Wrapping Up: Important Notes Before Selling
Finding a buyer interested in your home for selling in East London is not as easy as it sounds. Selling your house isn’t as easy as simply accepting cash, and you need to be ready to deal with several components(need to know) which will all consume your time, and, in turn, incur all costs.
However, if you take early precautionary steps, seek advice from reputable experts, and set a clear budget, you can avoid unexpected surprises, such as EPC requirements. With the support of a trusted Property Management Agent in East London, you can move towards a smooth and cost-effective sale.
FAQs: What Questions Do You Still Have?
1. Am I legally bound to seek the services of a property management company for assistance when selling the property?
You’re not legally required to hire a property management company, but doing so can truly streamline the process. Whether you’re dealing with tenant-occupied properties or managing from a distance, external support provides an integrated approach that eases stress and helps you follow a more structured, efficient plan.
2. What is the estimated budget for selling my home in East London?
It differs from person to person, but make sure to set aside at least 2% to 4% of your total sale price to accommodate for fees, removals, legal costs and extra agent fees.
3. What happens if my property is leasehold? Does that require a higher selling cost?
Typically speaking, yes. You will need to pay for a leasehold information pack, and the legal work typically takes longer. With the proper support, though, it can all be accomplished.
