For homeowners looking to sell, be prepared to shell out more than £5,400, factoring in costs such as estate agency and conveyancing fees. And for those in the heart of London, the cost skyrockets to an average of £11,500.
These findings stem from a study by estate agent comparison site, GetAgent.co.uk. Using its ‘My Property Tracker’ tool, GetAgent.co.uk assessed the fluctuating costs of selling properties throughout the UK.
The ‘My Property Tracker’ examines the selling price of homes, considering variables like current property values, standard estate agent fees, conveyancing costs, disbursements (extra charges by solicitors), and the Energy Performance Certificate report which evaluates property efficiency.
Currently, British sellers are shelling out an average of £5,413 to get their homes off the market. A whopping 81% of this, or £4,400, is gobbled up by estate agency fees. Conveyancing charges consume another 14%, typically leaving the seller £776 lighter, while the balance goes to disbursements and EPC costs.
Even though estate agent fees seem hefty, they constitute less than 2.00% of the house price across all UK regions, averaging around 1.52%.
Selling in London: A Costly Affair
For those in London, where the current average house price sits at £527,979, sellers need to prepare for an outlay of roughly £11,479. Given the high-valued transactions in London, estate agents command the highest fees, averaging 1.95% or £10,308 in today’s market. A portion of this elevated percentage might be influenced by prime transactions within the city, where specialised agents demand heftier fees to cater to the affluent homeowners. Furthermore, conveyancers in London charge more than their counterparts in other regions, with fees averaging £994.
Pricier Homes, Pricier Sales
Outside of London, regions with pricier homes also have higher selling costs. For instance, in the South East, where the average house price is £391,400, the selling costs rise to £7,100. The South West, renowned for its scenic beauty, boasts an average house price of £321,200, with corresponding selling costs of £6,108.
However, for homeowners in regions with lower average house prices, the selling costs are proportionally lower. In the North East, for instance, with the average house price standing at £161,000, the selling cost is around £3,300. Scotland follows closely with an average selling cost of £3,400 against a house price of £189,400. The North West stands at £4,000 in selling costs with an average house price of £215,600.
Co-founder and CEO of GetAgent.co.uk, Colby Short, commented:
“Despite wider economic instability the housing market has stood strong in recent months, with only a marginal decline in house prices to date. This means that as a seller you’ll hopefully end up with a healthy profit when you do come to sell, but you still need to budget for the cost required to transact which is currently over £5,000 on average.
“Typically the higher the house price the higher the costs will be, as most costs incurred are based on a percentage of your selling price and so you’ll need to come up with over £10,000 in London.
“While the biggest outlay is the fee paid to your estate agent, it’s money well spent, particularly in the current market where finding a legitimate buyer and making it through to completion has become all the harder.
When dealing with such an expensive asset, it makes perfect sense to get the best professional help possible and we’ve seen how opting for a low, fixed-fee agent can backfire when it comes to price achieved and the quality of service provided.
“Similarly when exchanging contracts if you use a quality conveyancer it can be the difference between securing a pain-free sale and being stressed out for months, so it’s not something to skimp out on.”