Understanding the full cost of moving house
There are many costs that come with moving house that people underestimate or forget to factor into their moving house budget, resulting in a surprise bill at the end. From saving for the house deposit to conveyancing and surveying fees, there will be many important costs to consider when moving house.
This post will cover all the costs you need to factor in when you are moving house to ensure you stick to a realistic house moving budget without any surprise bills throughout the process.
The biggest cost of moving house that you will have to factor in will be the deposit for buying a house. This can be anywhere between 5% and 20% upwards, depending on your circumstances. The more deposit that you can get together, the less monthly mortgage repayments you’ll have to pay.
There are plenty of government schemes such as the Help to Buy: ISA that are aimed at helping first-time buyers save for a deposit by adding in a government bonus to top up their amount.
Conveyancing fees are something that you will have to pay when both selling and buying a house. It’s important that you factor in the cost of a conveyancer into your moving house plan. You will have to pay more in conveyancing fees when you are buying a house than if you were selling a house.
There will usually be the initial upfront fee you will have to pay for using the conveyancer’s service followed by the conveyancing disbursements which are usually not so clear. Make sure you find out the full cost upfront and ask for a breakdown of the quote to avoid any hidden fees later down the line.
You should also remember to budget for surveying fees if you’re buying a house. The cheapest survey you can get is a homebuyer report which is designed for modern homes but the most in-depth yet expensive survey is the building survey which is suited for older properties.
Many people will underestimate the importance of getting a property survey as they don’t believe they need one. By getting a RICS property survey carried out, you can save potentially save thousands of pounds if the surveyor uncovered hidden defects and damages.
You will be made aware of these issues now and not once you’ve moved in. You can also use bad survey results as a way of re-negotiating your offer on the house if you found out you’d have to pay thousands in repairs.
Hiring a removal company is the most efficient way to move house, as they will be able to fill their van with your personal belongings instead of making multiple journeys if you were to do it yourself. If you’re worried about the cost of a removal company, there are many things that can be done to keep the cost down.
You should declutter some of your personal belongings before moving house as the cost of your removal company will depend on how many items you’re bringing with you. You can also save money by using cardboard boxes and packing materials from friends and family instead of buying the packing services they offer.
Estate Agent Fees
If you’re selling your house as well as buying one when you move, you will have to pay estate agent fees. We charge just £595 including VAT but typically estate agent fees will vary between 1% and 3% of the final selling price of the house as well as 20% VAT. You won’t have to worry about estate agent fees when buying a house, just selling.
When you’re buying a house, you will need to pay stamp duty land tax. You won’t have to pay stamp duty on properties up to £125,000 or up to £300,000 if you’re a first-time buyer. If you’re buying a property that is £250,000, you will have to pay £2,500 in stamp duty. Your solicitor or conveyancer will pay this on your behalf.
If you’re moving into an old home that is very personalised with the old owner’s decor and furniture, you’ll want to make it your own right away with a blank slate. Remember to factor in decorating costs or any building or extension work you plan to add to the house.
You should factor in decorating and building work costs when you’re searching for properties. If the house is cheap because it needs a lot of work done, remember to consider the cost of decorating and if it’s worth it.
It’s important that you remember to factor in these costs when moving house to avoid any hidden costs that you forgot to think about.