The house selling process can seem daunting to those with little experience in the field, as hidden costs and additional fees end up causing excess frustration for the homeowner.

In the interest of transparency, I want to identify all areas for potential costs to enable a hassle-free process.

Although this is a generalised list, aimed at helping the average homeowner, you and your house are unique.  Below I have identified and labelled the main areas of cost:

Estate Agents

An estate agent will be the first port of call for many sellers as they represent an expert with the ability to guide you through the house selling process. Nevertheless, the reputation of this sector has been tarnished by the actions of a few immoral agents looking for a quick buck. It must be noted that the majority of agents are trustworthy and will be acting with their clients best interests at heart.

With this in mind, its important to stay alert when choosing an agent. Whilst there are numerous national agencies who offer ‘region-specific’ representatives marketed as experts, it can often be very hard to prove the credentials of these individuals. I would recommend using a local independent agent. Most small independent companies like this have managed to stay in business for many years due to a strong reputation and repeated recommendations from the local communities. As such, they tend to have a strong local market knowledge as well as being highly respected.

Estate agents are used by over 95% of sellers and are, more often than not, paid by the seller as a percentage of the selling fee. The commission rate tends to fall between 0.75% and 2.5% (exc VAT), with an average rate of 1.5% (exc VAT).

For example, if a house is worth £200,000 and the agents fees are set at 1.5% (exc VAT), the seller will have to pay out £3,000 (plus £600 VAT) for the service provided by an agent.

This system is beneficial for the homeowner, as the less valuable a house is, the cheaper the fees paid to the estate agent will be. Furthermore many estate agents will only charge a homeowner fees if an actual sale is achieved.

Solicitor or Conveyancer

Of course, no buyer in their right mind would consider buying a property unless they had access to the full legal details associated with it. This is why buyers will always find themselves contacting a solicitor and/or conveyancer. As a seller, however, you will also need to pay legal fees to a legal representative to ensure that the sale is completed in the correct manner.

Conveyancing is an extremely competitive sector and there have been, in recent years, a rising number of complaints from consumers regarding both the level of honesty and quality of service provided. Many of the national estate agents have a dedicated team who they solely rely on for legal advice. When the bigger companies have a regular work stream like this, they are much more likely to rush through the content and make mistakes or simply provide the quickest rather than the best solution for the homeowner. As with estate agents, I would recommend contacting an independent solicitor or conveyancer directly.

Once hired, a solicitor or conveyancer will guide you through the relevant documentation, including but not limited to:

• TA6 form which requires a seller to disclose information on matters such as disputes, alterations to the property, planning consents, property insurance, flooding, parking and energy efficiency, to name but a few.
• TA10 form, also known as the Fixtures and Fittings Form.  This form clearly identifies what is and is not included in the sale of the property.
• TA13 form details everything related to the finalisation of the transaction including a declaration that the buyer will not inherit any claims for liability, and when the contracts will be signed, and the keys handed over.
• The preparation of information related to the status of the title-deed, whether it is freehold or leasehold. If your property is leasehold, however, be prepared to pay a higher fee due to the extra administrative work. This information is included in either a TA7 or TA9 form.

The process can be very technical and requires an intimate knowledge of the legal housing sphere, so it is recommended you do not attempt to do this alone. The fees associated with this service vary but tend to be in the region of £500-£1000 (inc VAT).

Chartered Surveyor

One of the most important figures to identify while attempting to sell a house is the most suitable asking price. While many estate agents will be able to provide you with a ballpark estimate, this figure can be heavily affected by features that may only be obvious to a chartered surveyor.  Ignoring the advice of a surveyor and prioritising your estate agent’s estimate is never a good idea. This is because estate agents may overstate the value of your home in order to gain your business which in fact, makes your home harder to sell and ultimately, costs you more in the long run.

A chartered surveyor uses various methods to arrive upon an asking price that is reasonable in the current market. The methods employed will include, but are not limited to:

• Evaluating house prices of properties sold nearby.
• A structural report that will identify any issues that could impact the value of your home. This could include the presence of damp, subsidence as well as the condition of the roof and supporting structure.
• The value of, and quality of, an extension.
• The maintenance and upkeep that has been invested into the property.

It is important to note that a surveyor is not responsible for unidentified faults that are inaccessible. A quality surveyor of experience, however, is likely to mention possible issues that could be present based on the other information they have gathered.

As with most cost, survey fees will vary.  While certain independent surveyors will provide a fixed fee valuation, most jobs will be quoted for based on the value of the property.  Expect to pay anything from £150 for a smaller property up to £1,500 for a larger one.

Capital Gains Tax

Thankfully, stamp duty is not a cost that is attributed to the seller. Stamp duty is effectively a tax on the preparation of documents related to a house sale and is only relevant for a buyer who is buying a house worth more that £125,000.

The only tax that may need paying, other than VAT for employed services, is Capital Gains tax.  Capital Gains Tax is a tax on the profit when you sell your property that’s increased in value.  There are a number of factors that play a role here and the majority of the time, a homeowner will enjoy Private Residence Relief and will not have to pay out as a result.

What are the other smaller costs involved with selling a home?

It may come as a surprise to many but there can be a number of smaller costs that the seller is liable for, and these can often add up to a fairly sizeable fee.

Energy Performance Certificate fees

An Energy Performance Certificate (EPC) is a small survey that focuses on the environmental impact of your home. An EPC is carried out by an individual known as a Domestic Energy Assessor who uses software to give a house a score out of 100. This scored is based on a number of factors including the homes heating system, glazing standards and construction type.

When these certificates were introduced, a survey was likely to cost in the region of £120 (plus VAT). Nowadays, many estate agents have an individual on staff with the qualifications to perform this survey. As a result, the cost can often be as low as £30 to £40, and a generous agent may even waive the fee. It is also worth noting that if an EPC has been performed in the preceding ten years, and there have been no structural changes to the property, then an EPC is not required.

Removal fees

A seller can often be forgiven for forgetting to include the cost of removals into the house-selling equation. It’s understandable that the focus required to obtain a sale pushes the need to physically move your belongings into a distant second place.

Of course, the cost associated with removals varies on the amount of time needed to shift all of your possessions. If you are a first time buyer with minimal possessions, you can find yourself paying as little as £250.  If however you have collected a high volume of possession over the years, and in particular expensive, or delicate items, you will see your fees rise dramatically, into the £1000’s.

Mortgage fees

If you have an existing mortgage, the chances are high that your lender will hope to keep your custom by allowing you to switch your mortgage over to your new house with minimal stress. If you have found a better quote elsewhere though, then you could end up paying your original lender an exit fee.

The fee price can vary considerably. I recommend that you check the small print in your original contract in order to avoid a last minute surprise.

General cleaning fees

The way a property is presented goes a long way to securing viewings and ultimately the sale of your home.  Whilst some people can look past the mess and envision their dream home, most buyers will be deterred by a messy home.  First impressions count!

Of course you can hire a team of cleaners for the day, and no one will judge you if you do, but if you are willing to put in a little elbow grease, this is one part of a house sale that you can save money on.

How can a homeowner avoid these costs?

Ultimately, the process of selling a house can be more expensive than many of us are led to believe. There are plenty of ways to avoid these costs but most of these methods involve completing a lot of the physical or administrative work yourself. For example, the homeowner could complete the removal process themselves, but it is often associated with extra stress as you are not experts in packing, moving and unpacking large or delicate items of furniture. The homeowner could also list their property for sale themselves without an agent, but this requires a lot of business know how and understanding of the legal process.

If you do need to sell your home in a short time frame with less fees, it is important to know the alternative options available to you. One of the fastest growing routes sellers are taking is that of an independent and local house buying company, like Olivia Rose Estates.

Are you looking for somebody to buy your house without the hassle, and cost, associated with a traditional sale process?  Olivia Rose Estates offer a fast and efficient service, meaning you can sell your house to us in a timeframe that suits you.

There will be no legal fees, no survey fees and no commission.

We are here to help you sell your house fast. We can offer a guaranteed cash purchase for your property in a timescale that suits you. It could be a couple of weeks, or even just a few days. You no longer have to pay estate agents fees and deal with the potential long delays of a traditional sale process. It is not uncommon for house sales and purchases to fall through due to broken chains or mortgages not being approved at the last minute.

We will help guide you through the process of selling your home, whatever your reason for selling. From the initial valuation to the final completion date, rest assured you are being guided by trusted property professionals who are here to help you get the most out of your house sale and ensure you have a hassle-free experience.