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Published: 28 March 2024

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People may give you differing answers to this question, however, my advice – and that of other property professionals – would always be to put your house on the market first.

It obviously wouldn’t do any harm to look at prices and check that it’s possible to buy what you want with your expected budget. However, any offers you make would almost certainly be rejected until such point that you are ‘proceedable’ – that is, you are in a position to proceed with the purchase. And if you need to sell your house to be able to buy, you’re not in that position until you have agreed a sale on yours.

A cash or first time buyer for your home would put you in the strongest position to make an offer on something else because, assuming their finances are in place, they are proceedable, therefore putting you in the same position. You would also have strength as a buyer if your home was under offer to someone with a proceedable buyer for theirs.

Different agents and sellers have varying viewpoints - some won’t even entertain allowing viewings by buyers who aren’t able to proceed straight away, and at the other end of the scale, there are some out there who would accept an offer and be happy to wait until such time that their offeree had a buyer – probably though for a set amount of time, or until an acceptable offer was made by someone in a stronger position.

It also depends on the state of the market. In a buoyant market with greater demand than supply, there is a greater chance of a buyer being found in a shorter amount of time than in a market when supply is greater, so more sellers would be inclined to wait.

And individual circumstances are also an influencing factor - some sellers need to move as soon as possible and others are in no hurry.

Fact is, you can’t buy until you’ve sold, so find a buyer first and put yourselves in the strongest possible position. You’d be sorely disappointed if you found your dream home and couldn’t buy it. With an offer on the table, you’ll have a more accurate idea of your budget too.

If you’d like any further advice, give us a call on 01392 204800.

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Published: 28 March 2024

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These two values are indeed very different things. The market value of a property is what you would aim to sell it for, whereas the insured value is what it would cost to rebuild it in the event of a major fire, accident or subsidence, for example.

The market value is almost always higher because the insured value doesn’t need to consider the value of the land on which the property sits. However, in the case of listed buildings, properties made from non-standard materials, or those with special architectural features, the rebuild cost could actually be higher.

Insurance companies usually provide an estimate and increase their valuations annually in line with inflation. It’s important to tell them if you’ve extended or improved your home so they can take this into account.

We would however advise you to check the insured value yourself every few years, just to make sure you have adequate cover. There are two ways of doing this – the most accurate way is to hire a chartered surveyor to carry out a professional assessment, or the less costly option is to use the ABI (Association of British Insurers) BCIS (Building Cost Information Service) Residential Rebuilding Costs calculator at https://abi.bcis.co.uk/.

You’ll need to register, measure the gross external floor area of your home, and enter that as well as a few other details into the calculator. Once you have the result, you can compare it with your level of cover and ask your insurer to make any necessary adjustments. It might mean you pay a slightly higher premium, but it’s worth it for the peace of mind that there wouldn’t be a shortfall should you need to make a claim.

To find out the market value of your home, contact your local estate agent. We’d be happy to provide you with a market valuation free of charge and without obligation – just give us a call on 01392 204800.

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Published: 28 March 2024

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All of these methods are offered by estate agents. Most properties are sold by Private Treaty, whereby a property is advertised at an asking price on the open market and when an offer is made, a sale price can be negotiated and agreed. At this point, the property becomes Sold Subject to Contract while the legal searches are carried out and contracts drawn up. When everything is in order and the sale/purchase can proceed, the contracts are signed and exchanged, the deposit paid and a completion date set. This process works to an unspecified timeframe and either party can withdraw from their sale or purchase up to the point of exchange of contracts – this is the contentious part of the current home buying/selling process in England and Wales. The transaction is legally binding at the point of exchange of contracts, and then the settlement of outstanding funds and handover of keys mark the transfer of ownership and completion.

Sale by Informal Tender is less common and is used if there are – or there are expected to be – several interested buyers. The property is advertised as normal on the open market. Prospective buyers are asked to submit a sealed bid (or ‘tender’), usually within a specific timeframe and then the vendor and their agent selects either the highest bid or the one from the most suitable buyer, whichever is the more important factor under the vendor’s circumstances. The property then becomes Sold Subject to Contract and the transaction proceeds in the same way as a Private Treaty sale/purchase.

The more unusual method is sale by Formal Tender, which combines the processes of both informal tender and auction. The legal pack is prepared before marketing and the property is marketed openly for a set amount of time, during which, bids are invited. Unlike Informal Tender, interested parties sign a contract and provide deposit details when placing their bid (or ‘tender’), and unlike Public Auction, all bids are confidential. The highest or most suitable tender is selected and upon acceptance the deposit is paid and contracts are immediately exchanged, legally binding both the buyer and seller to the transaction. With the legal work, deposit and contracts already in place, completion is set for a date usually within 28 days.

Your estate agent will be able to advise which is the most appropriate method for your property and your circumstances. If you’d like to discuss anything property-related, give us a call on 01392 204800.

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Published: 04 March 2024

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A Guide to Understanding the Costs of Selling a House in 2024

As a general rule of thumb, it’s always wise to shop around and compare quotes before selling or buying anything, making it even more crucial to do the same when selling a house.

 Before you put your property on the market, you must understand the total cost of selling a property, considering many services charge a certain percentage of your home’s value instead of a fixed rate.

 Property prices have skyrocketed, so you might have to pay more for such costs. This article offers a complete breakdown of these costs and what you can expect.

Estate Agent Fees

Most people choose to use estate agent services to sell their properties. While high-street agents charge a percentage of the selling price of your property plus VAT, a hybrid or online agent will usually have fixed charges for their commissions.

However, stay prepared to haggle on these fees because agents are expecting this, and if you’re successful, you’ll get the overall cost of selling your house lower.

Cost Overview:

• 75% - 3.6% + VAT of the final sale price.
• Around 95% of home sellers use high street agents over random cheap ones
• In the case you don’t sell your house, you don’t pay; a majority of agents follow the no-sale-no-fee policy
• For sole agencies, the average fee is expected to be around 1% -1.5% + VAT
• For multi agencies, expect a higher rate ranging between 2.4% - 3.6%
• For online or hybrid agents, fees usually vary between £600 - £1500 inclusive of VAT

Conveyancing Fees

You’ll have to hire a conveyancer or solicitor to deal with the legalities of transferring property ownership from one person to another. The fees include solicitors, land registry, search, and Stamp Duty Land Tax charges. These are bound to vary based on the type of ownership, i.e., freehold or leasehold.

Cost Overview:

• Fees for the sale of freehold properties range between £200 - £600
• Fees for the sale of leasehold properties range between £800 - £1,600
• If either of the properties has an ongoing mortgage, there will be an additional fee of around £50
• If you want to sell a leasehold property, extending the lease yourself is crucial; otherwise, you will have to supply the buyer with a Leasehold Management Pack, which can cost an additional £300-£800

Energy Performance Certificate (EPC)

EPC grades the energy efficiency of your house (A being the highest and G the lowest). It also suggests ways to improve your rating with additional costs, which can be purchased through the estate agent themself or by using the independent energy performance assessor on the government EPC register. Legally, this certificate is a must.

Cost Overview:

• Ranges between £35 - £150 + VAT
• The order for an EPC must be done before placing your house on the market
• The validity of an EPC is ten years, and it’s stored digitally by the government
• You can access the certificate via the EPC Register website.
• Having an EPC increases the chances of getting your house sold.

Removal Company Cost

After finding a buyer for your home, you need to book a removal company to move around all your possessions, such as furniture, electronics, etc. These rates will vary depending on how much stuff needs to move around and the distance.

Cost Overview:

• 1BHK prices range from £334 (0-20 miles) - £811 (100+ miles)
• 2BHK prices range from £487 (0-20 miles) - £1,037 (100+ miles)
• 3BHK prices range from £731 (0-20 miles) - £1,446 (100+ miles)
• 4BHK prices range from £1,042 (0-20 miles) - £1,837 (100+ miles)
• 5BHK prices range from £1,397 (0-20 miles) - £2,243 (100+ miles)
• Companies offer discounted rates for advance bookings
• An additional charge of £20 - £30 may apply if your household contents are not insured

Preparing House For Sale

Some estate agents suggest that you invest in basic home improvement projects that will increase the desirability of your property, which in return will speed up the property sale. Undoubtedly, the cost of these improvements or repairs will vary depending on what work is required, but these are some basic areas to look out for.

Cost Overview:

• A full house deep clean won’t cost a dime if you do it yourself, but if you use cleaning services, it can go up to £150
• Reparations charges also depend on the severity of the damage, which means it could be a minor DIY job or something major that costs £1000s.
• Redecorating is meant for the overall appeal, and if your house hasn’t been retouched in over five years, you should consider it. These can be simple jobs like fresh paint on the walls or complicated stuff like changing fixtures; this can cost anywhere between £50 - £2,000.

Mortgage Fees

You will have to pay extra fees if the house you’re selling comes with a mortgage. There are two main categories of mortgage fees, i.e., Mortgage exit and early repayment fees (ERC). The former is paid to the lender so they can close your mortgage once it’s settled, while the latter is for when you’ve paid your mortgage off before your fixed term has ended. In the case of an ongoing mortgage, it’s advisable to consider getting a new mortgage with a better deal.

Cost Overview:

• Depending on your lender, mortgage exit fees typically cost between £50-£300
• ERC usually costs between 1%-5% of your loan amount, although sometimes this fee may exceed the expected amount
• If either fee seems exorbitant, ask the Financial Ombudsman Service to review your complaint.
• If you’re choosing to remortgage, you’ll have to pay an arrangement fee (£1,000 - £2,000), booking fee (£100 - £250), and valuation fee (£150 - £1,500)

Taxes

Capital gains tax (CGT) is applicable if you're selling an asset that has gained more value since you purchased it, and this also applies to the current selling cost of your house. The tax rates vary based on your income and the gain size, and you only have to pay CGT on profits exceeding your annual allowance.

If you’re selling your only main home, you don’t have to pay CGT, which means it’s only applicable to let houses, second-home sales, and inherited property sales.

Cost Overview:

• CGT on residential property ranges from 18% - 28% of the gain and not the total sale price
• The tax-free annual allowance was set at £12,300 per person for the year 2022-23
• You can get deductions on any improvement or transactional costs involved in selling the property (solicitor, agent fees, etc.)
• Consult an accountant to calculate your CGT accurately and explore ways to minimise the liability.

Conclusion

It’s 2024, and it’s no surprise that the cost of selling your house will depend on various factors, such as the size of your property, ownership type, sale price, location, and the services you choose. With the help of our guide, we hope to answer as many of these questions as possible so you can make a wise decision throughout the selling process.