Simple Ways to Save Thousands When Selling Your Home
Selling or buying a property is one of life’s most important financial transactions and comes with many additional expenses.
But while some costs are unavoidable, there are plenty of ways to save money when moving house. We’ve rounded up some of the best.
Choose your real estate agent carefully
The highest cost for selling a home is the realtor’s fee, which is usually paid by the seller to their agent and can be up to 1.5% of the final sale price of the property.
Depending on your region, the agent, and the amount of work you expect from them for their commission, you may be able to negotiate a lower rate.
But because it is a seller’s market in many areas, an increasing number of owners are minimizing the involvement of estate agents altogether by going online to use less traditional estate agents to market their property. This can save thousands of pounds.
Online real estate agent Strike works nationwide and sells properties for free. Even with a relatively conservative 1% commission from a traditional estate agent, this could save sellers £2,500 in fees on a £250,000 home.
Strike makes money by offering a host of optional extras that sellers can use, although they say around 40% of customers choose a completely free sale. Optional additional services include £599 flat rate marketing bonuses offering professional photography, a video trailer and a premium Rightmove listing, as well as conveyancing, mortgage and removal services. You can get a free estimate online with Strike here.
Whichever real estate agency you choose, whether it’s an online agency like Strike or competitors like Yopa, which charges a flat fee of £999 per sale, or a high street option, it’s worth getting more than one quote on your home’s value. Appraisals can vary widely, so having a good idea of the local real estate market and where your home is in terms of price means you’re more likely to get the maximum price for your sale.
Some builders also offer coin swapping on new builds, which is another way to eliminate realtor commissions. It’s worth researching what the local rate for your property is before agreeing to this, even just using online appraisal tools, as the amount they offer might be less than what you’d get when opening your home to the wider market.
Traditional conveyancing lawyers’ fees have always been higher than their online counterparts, but, with the coronavirus seeing a backlog of removals and high demand, prices have risen further in recent years, which means that it could cost someone up to £1,500 in fees. oversee the judicial process.
There are many transfer agents online who can oversee the purchase, sale or mortgage of a property, but the only downside to this process is that although they are considerably cheaper and you can save hundreds of books, they often deal with dozens of cases in a hub, which means you’re not always talking to the same person.
This can cause delays, so it’s worth considering whether price or speed is your priority during the process before trying to cut costs here.
Whoever you choose to do your transfer of ownership, make sure they are fully regulated and, if possible, read independent reviews or talk to past clients before you begin the process. If you opt for a more traditional solicitor, check what is included in the price and what is likely to be extra, for example local government searches will probably cost around £300, so check if this is included. Also ask if they do a flat fee transfer package so at least you know what you are paying before you start the process rather than suddenly getting an insanely high bill where every lawsuit letter or email they have sent added a little more at your expense.
Of course, there are many other costs involved in the process of buying and selling a home. Be sure to carefully consider the type of survey you need for any new property you buy. Although you (and a mortgage company) want to make sure your new home is in good condition, there are several different types of surveys and going for a less thorough survey if possible will save you money.
During this time, make sure your mortgage is fixed for as long as you can get it at the lowest possible rate, and look for any offers, discounts or perks. For example, some mortgage brokers collect their own fees from banks rather than customers, which could save several hundred pounds. Some mortgage companies offer incentives such as money for legal fees or waiver of application fees. While this shouldn’t sway your choice of a lower value mortgage over a better one, it’s worth considering.
Moving… or not
Ideally, before you put your home on the market, do a major decluttering as part of your renovation process. Get a jump if needed, or do regular tip and charity shop errands, as well as selling anything that might find a new home on Pie Music (great for DVDs, CDs and games), MPB (higher value unused tech and camera equipment), Ebay (everything else) or other local marketplaces – that’s extra cash for the moving fund.
Not only does getting your home organized before you have to pack it up means you’re not moving unnecessary items around, it could also have a ripple effect on how it looks to potential buyers during viewings. Rooms seem bigger and more tempting when things are a little less cluttered, which could subconsciously encourage people to think your house is worth more and make money in the long run.
As you get closer to moving day, you need to weigh the money savings against the sanity savings. Do you have access to a van or can you hire and drive one for a few hundred pounds, could you get a group of friends or family together to help haul the heaviest things, do you have any children or pets to worry about?
Moving company costs vary greatly depending on the country you are in and the size of the house you are moving from. The average cost for a removals company for a three bedroom house is currently estimated to be around £1,500, but in some parts of the country where demand is high it can be much more than this.
If you decide to go the route of a professional moving company, the fact that you’ve already gotten rid of everything that doesn’t need space in your new home means that at least you’re not paying them. for wasted time. Moving companies vary widely in price and how they operate, so think carefully about what you need them for – do you need them to pack and unpack and disassemble and reassemble all your furniture, what which will be expensive. Or could they drop off the packing materials for you to do it yourself and show up the same day to load the truck? There will be a significant price difference between these two types of services.
The distance between old and new properties is also a factor, with anything within a distance of around 25 miles tending to attract high prices. Demand for good moving companies is high, so as soon as you have a potential moving date, talk to your favorite company – they’ll move it if needed, but you don’t want to miss it completely. Also, although Friday is a popular day to move because it minimizes holidays, it is also the most popular and therefore the most expensive. Consider a mid-week date where prices may be cheaper.
As with your attorney, make sure you’ve done your homework on the firm you’re using. Read reviews online, ask friends and family who have moved, preferably recently, and ask several companies to come see your home and do an educated estimate on the job site.
Don’t forget the savings in your new home
Wherever you move, there are plenty of ways to save money when furnishing your new home.
Use price comparators like Money supermarket or ComparetheMarket.com to get the best deals on everything from your home insurance to new energy providers and other utilities.
Don’t just assume that transferring existing TV subscriptions, broadband deals, etc. gets you the best deal – take the opportunity to sign up as a new customer and see what deals you get – often for companies like Sky Where Broadband BT you will get a better offer or new offers as a new customer.
If you haven’t joined any cashback sites before, it’s worth doing so before signing up for new accounts, as there are great cashback offers when signing long contracts – for example, Quidco will offer members £154 cashback when they sign up for Sky, £122 cashback for BT TV and Broadband, £110 cashback on Coverbaloo home insurance or £88 for Virgin which is a lot if you had the intend to register anyway.