How Much Does It Cost To Sell Your House In Watford
David Clayton posted on 3rd May 2022
If rising house prices, and high demand for properties, has got you thinking about a move, you might be wondering how much it will cost to sell your Watford home.
With sold prices in Watford up by 2% over the past year – and up 7% on the 2018 peak, according to Rightmove, deciding to sell could mean a substantial gain on your property investment. However, there are costs involved with selling your home – many of which you can’t avoid.
For anyone who hasn’t sold property recently, we explain the seven main costs involved in a property sale.
1 Solicitor’s or conveyancer’s fees
You’ll need to factor in fees for the solicitor or licensed conveyancer who takes care of the legal aspects of selling your home. You will most likely be charged a percentage fee, based on your property’s value. In some cases, you might be charged a flat rate. The fees for selling are usually lower than for buying and range from around £500 to £1,500.
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You will pay more in fees if your Watford home is a leasehold property, because this involves additional work and checks. You may also need to pay your solicitor for a copy of title deeds held by the Land Registry, for money-laundering checks and bank transfer fees.
2 Estate agent fees
You don’t have to use an estate agent to sell your home, but most people do. Traditional estate agents usually charge a percentage of the selling price, plus VAT. How much your agent charges will vary depending on many factors; where your home is and how easy they believe it will be to sell, for example. It is worth getting quotes before you appoint an agent but don’t go on cost alone – this could be a false economy, if they struggle to sell the property.
In most case, with a traditional agent, you will only pay the fee if your house sells, however contracts do vary, so always check carefully. Generally, fees range from between 1% and 3% – equivalent to between £4,000 and £13,000 on an average £440,000 Watford home. A higher commission is usually charged if you choose to use more than one agent.
Online agents are cheaper, but you may need to do more of the legwork yourself. They often charge a flat fee and may ask for it upfront. Always check what is included for the fee and decide whether the level of service is right for you.
3 Mortgage fees
If you are selling without buying another place or porting your mortgage to another property, you may be charged mortgage exit and early repayment fees.
Exit fees are sometimes charged by your lender to close your file if you pay off your mortgage. Check your paperwork to see if they apply to your mortgage. These fees can be around £300.
You may also be liable for early repayment charges, usually of between 1% and 5% of the loan. These frequently apply if you need to repay a fixed rate mortgage before the term is up.
4 Energy performance certificate
To market your property, you will need a valid energy performance certificate (EPC). An EPC tells buyers about the energy efficiency profile of your property by rating it from A to G – A is the most efficient and G the least. EPCs last for 10 years, so if your inspection was carried out recently, you don’t need to repeat it. However, with increasing concern for energy efficiency among buyers, it may be worth having a new inspection, if anything about your home’s insulation, glazing or heating system has changed. Expect to pay around £120.
5 Removals
How much you spend on removals depends upon the size of your property, the level of service you require – and how much time you’re prepared to put in yourself. For example, you will pay more if you require a packing service or if you are relocating far from your Watford home. If you’ve decided to sell before you buy, you may need to pay to have some of your belongings kept in storage. Average costs for a professional removals service range from around £250 to £1,500.
6 Taxes
If the property you are selling is a second home, buy-to-let investment or inheritance, you may need to pay Capital Gains Tax if it has risen in value while you have owned it. Sellers do not need to pay stamp duty land tax – this is paid by the buyer.
7 Staging your home to sell
First impressions really do count, so depending on the condition of your property, you may need to spend some money on sprucing it up to sell. A lot of your essential improvements – cleaning, decluttering, a lick of paint or minor repairs – can be done for minimal cost. For major issues, such as problems with the roof, you will need to decide whether to have the work done or offer a price reduction.
How do I calculate my profit from selling?
To calculate your profit, subtract your mortgage balance + the costs of selling from the sale price. Also subtract any money you spend on home improvements as well as your initial deposit and the costs of purchasing the property to work out your net profit.
If you thinking of selling in Watford, we’d love to help. Contact us today to arrange a valuation and discuss how we could develop the best strategy to sell your home.
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David Clayton
Claytons blog was created to give light hearted but hopefully useful property related thoughts and advice.
David started his career at former family firm, Weller Hill Hubble aged 17. The company was later purchased by General Accident property services and David went on to become their youngest ever manager and Area Director. However, disenchanted with corporate life he decided to return to his old roots and start a personal, service driven Estate agency. In 1991 Claytons was born and has grown into one of Watfords most well known and successful businesses. Outside of work David , who still lives locally is married with 3 children and a cockapoo called Teddy.
