When buying or selling a property there are a number of costs you need to take into account to ensure you stick to your budget. If you don’t anticipate them you can easily find yourself facing higher bills than you expected and struggle to make the payments you need to. There are so many costs to consider it can be difficult to account for all of them but the following information should help.
There are several key costs to think about when you come to sell a property. The first of these is the fee you’ll be charged by the estate agent. These are most commonly worked out as a percentage of the final selling price, typically between 1-2%. Getting an idea of these from the agent before you market the property is wise and will save you from surprises. At Finefair we are always completely transparent about costs and will provide you with all the help and advice you need to ensure you are not surprised with any unexpected costs. With our comprehensive services for property investments and property management in Greenwich and the rest of London, we will ensure no important details are overlooked.
When you sell a property you have to ensure that energy performance certificates (EPCs) are provided. An EPC sets out the efficiency of the property and provides information about the impact it has on the environment. Sellers are required by law to provide this information and can face fines if they don’t have them. The cost of getting EPCs varies depending on the provider but they shouldn’t cost more than £100.
Prepping the property for sale is an expense to consider, even if it is just something simple like painting walls and clearing up. Ensuring the building is in a presentable condition can help you to make the sale and even has the potential to increase the value.
A final thing to consider is if you are selling and will be paying off what remains of your mortgage. Paying the remainder off early can save you money but there may also be some repayment fees to account for.
Moving on to buying costs there are several important things to budget for starting with those conveyancing costs. These can be much higher for buyers because there is a lot more paperwork to fill in and you need to deal with additional parties such as mortgage providers, insurers and the estate agent of the seller.
Stamp duty can prove to be a big expense but only impacts properties valued at over £125,000. The amount you will pay will depend on the value of the property and will be worked out as a percentage of it. More information about this can be found on the www.gov.uk website.
Mortgage and insurance costs both need to be factored in and these can prove to be a little more complex than simply signing an agreement and paying the premium each month. If you go to a broker to find you the best deal they will charge you a fee for their service.
Once all these costs are calculated you need to think about the actual cost of moving including hiring removal vehicles, materials to help you pack everything up and additional labour if you need help loading and unloading everything. These costs will vary depending on the amount of possessions you have, the distance you are moving and the removal company you choose.