Moving home can be the most expensive process you will ever undertake. However, just because real estate is expensive, does not mean that moving house has to be a rip-off, even with the hidden costs factored in. A few simple tips can save you a lot of money, so let’s break down the true costs when making a move to your dream home and suggest ways to minimise them.
An estate agent is not essential to selling your property nowadays, but they do know the local housing markets like the back of their hand. They will get the right price for your home and get it quicker than going it alone. It is far too easy to undersell your property without the right guidance, so the investment is usually worth it. The downside is that an estate agent will typically charge 2.5% of the property’s asking price. This may sound small but it means handing over £5,000 when selling a property worth £200,000, which is no small sum.
- Save money by negotiating your percentage with the estate agents. Like any service provider, they want your custom and are open to negotiation. You may want to consider an online estate agent as these companies will charge as little as 0.5% of the sale price, or a fixed price as low as £495.00. They will offer the same services as a high street estate agent, but you will need to conduct your own house viewings and the online agent will lack a shop window in the local area. However, as of 2016, 96% of property searches begin online.
Solicitors are indispensable when selling a home. They will greatly simplify the legal process and deal with paperwork, including contracts, land registration and stamp duty. Look for a solicitor during your search for an estate agent, as estate agents can recommend a particular solicitor with a reputation for smooth handovers. The size of the property and the location will decide the overall cost, but on average solicitors and related fees come in at £1,500.
- Save money by negotiating with the solicitor. Like estate agents, their fees are open to reasonable haggling.
Stamp duty is a tax in England, Wales and Northern Ireland that must be paid when buying a house with an asking price over £125,000. The amount of tax will depend on the value of the property you’re buying. You can work out how much stamp duty you will be eligible to pay using the table below.
|Purchase price of property||Stamp Duty|
|£0 – £125,000||0%|
|£125,001 – £250,000||2%|
|£250,001 – £925,000||5%|
|£925,001 – £1.5 million||10%|
A different tax, the Land and Buildings Transaction Tax, applies to properties in Scotland. Any property over £145,000 must pay this tax and it is often cheaper than the equivalent stamp duty in the rest of the UK.
- Save money by assessing your circumstances. In some cases this can reduce the price of stamp duty. If you are living in association or council housing and buying a property under the Right to Buy scheme, you could receive a discount of up to £103,900. In this situation the stamp duty will apply to the discounted sale price and not the original sale price.
If you are buying a property valued over £125,000 and are not using Right to Buy, stamp duty is an additional cost that can not be avoided.
Property surveyors save you money in the long run by flagging any serious issues with your potential new home. A professional with an understanding of construction knows the common problems with older properties; foundations, structural integrity and utilities are major areas the average buyer will not be able to independently assess themselves. So a property survey is a worthy investment. The average cost for a survey is £500, but shop around to find the best deal.
For buying a newer home, where major building issues should not be a problem, you can save money by commissioning an RICS Condition Report, costing on average £250. The Condition Report is basic compared to a traditional survey, hence why it is only recommended for newer homes.
- Save money by making a reduced offer if your property surveyor finds issues with the house, and use your survey as justification. Typically, a discount achieved this way will be worth more than the cost of repairs.
Choose a professional service with uniformed staff, a fleet of vehicles and a range of comprehensive options. This way an expert will assess your situation and the services you want, giving you the best possible price. Come moving day, a team of experienced movers will transport your belongings with care and you will have a stress-free move. Price all depends on where you are moving from and where you are moving to. For the best prices, get quotes from removals companies who do european and international moves, as this shows the company is accustomed to organising complex workloads on the best value budget available.
- Save money by talking to a reputable removals specialist. They will be able to break down all costs to show you where every penny is spent. Compare quotes and speak with each company to find the best deal for you. The best removals companies will offer you a free quote and home visit to truly tailor the process to your needs.
Barnes of Lincoln provide the best removals services in the UK. Our movers are fully trained, fully uniformed and ready to take the strain out of your moving day. We provide quotes free of charge, and packing, handling and transportation services that see your belongings safely to their destination, wherever in the UK you happen to be. If you are moving abroad, that’s not problem either, Barnes of Lincoln offer a comprehensive international service to match the high standard of our UK moves. If you need a reliable removals firm, get in touch with us today and speak to one of our friendly team.