Everyone knows moving to a new property can be stressful but it seems it is expensive too with a typical cost of more than £12,000.
Latest figures from Lloyds Bank show that people moving home are spending an average of £12,110 - £486 more than last year. But where does all this money go and how can you reduce your bill without cutting corners?
If you are selling a property then one of your biggest expenses will be estate agency fees. People selling homes in the UK typically pay their estate agent between one and two per cent of the sale price of their property. The best way to save money on estate agents is to shop around and look at the small print of your contract in detail. Consider whether you want to pay a percentage of the amount you sell your home for as commission or a fixed up-front fee. Up-front fees are often lower than commission but you usually have to pay them even if the house does not sell. In contrast, many estate agents who charge commission will only take money when the house has successfully sold. Look at the different options available in detail and weigh up the likely costs before committing to using an estate agent. If you are confident your home will sell easily, it may be worth using an agent which charges a fixed fee. Estate agents which are based online are typically cheaper than the ones with a shop on the high street. You can also often save money by showing potential buyers round your property yourself instead of getting an estate agent to handle the viewings.
How much you pay in stamp duty will depend on the value of the property you are buying. First-time buyers in England and Northern Ireland can buy a home up to the value of £300,000 without having to pay stamp duty. If it’s not your first home then you will have to pay stamp duty if the property you are buying costs more than £125,000. However, you will only pay tax on the amount you pay over the £125,000 tax-free threshold. Stamp duty is calculated at two per cent from £125,000 to £250,000 and then five per cent on the amount over £250,000. This is not something you can save money on but you may want to be aware of the stamp duty thresholds when making an offer to buy a house.
Conveyancing is the legal process of transferring the ownership of a property from one person to another. If you are buying and selling a home at the same time, you will have to pay a solicitor to handle the process for both properties. How much you pay can depend on how complicated or straightforward the process is. As with estate agents, you should shop around and make sure you fully understand the costs involved before choosing a solicitor. Think about what is important to you and ask around for recommendations. Some solicitors will charge fixed fees and it may well be worth finding one who will only charge you if the move goes ahead. Don’t be tempted to choose a solicitor purely on price though as you need someone who is an expert and will help make the buying and selling process as stress-free as possible.
The average cost of using a removals firm to move house is £1,168. How much you pay will depend on the service you need, how much stuff you have and how far you are moving. It is important to get a personalised quote which will take into account your individual requirements. Andrew Porter Limited will send a representative to your home to talk you through the options available and provide you with a detailed quote so you know exactly what you are paying for. Using an expert removals firm can make all the difference to your move and ensure the day itself goes as smoothly as possible. One way you could save some money is to provide your own boxes and pack your own belongings – although you may decide the time saved in getting the professionals to do it for you is well worth the extra fee.
Having a survey carried out on a house before you buy it is an important way of checking for potential problems which could end up costing you a lot of money in the future. Shop around for a good surveyor who charges a fair price and ask your friends and family for recommendations. Have a look at the types of surveys available and work out which one you need. If you are buying a fairly new property which is in excellent condition then a low-cost condition report may be enough. However, for older properties or one where there is likely to be complications then it is wise to pay more for a more detailed and thorough survey.
