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Cost of Moving House Rises 69pc in 10 Years!
Moving home? You will not welcome news that the cost of moving has risen 69pc. Indeed, moving house will now cost you £8,922 on average compared to £2765.82 ten years ago. In fact, according to Lloyds TSB the cost of moving has risen faster than house prices (64pc in the same period).
Estate agent fees remain the biggest expense when moving home accounting for 38pc of the total costs, followed by stamp duty at 21pc. In comparison the cost of moving home for first time buyers stood at £3,334 in 2011 as FTBs do not typically pay estate agent fees and stamp duties.
And if you are moving home in the south east it has more than doubled during the same 10-year-period, rising 132pc. In London, costs have risen by 127pc.
What can I do to reduce moving costs?
Well let’s face it; moving is always going to be expensive, no matter how much we try to cut down costs, but there are always ways you might be able to save some money.
In order to sell your home you will probably want to work with an estate agent and can therefore expect to pay an estate agents commission – this can vary greatly and is usually calculated at between 2 and 3.5 per cent of the sales price.
Usually these fees are negotiable and you may be able to get a better deal. But remember, an agent will make a larger profit on selling a mansion than a low value property and therefore will be more likely to negotiate their fee.
It is also important to check what you get for your money. As with many things in life the cheapest deal is not usually the best! – You want your house to sell and therefore need to check the amount and quality of the advertising. Also remember that if you plan to use more than one agency the fees could be higher!
Key Point: The estate agents commission will have VAT charged on top. Make sure you remember this when budgeting.
Unfortunately, stamp duty (SDLT) is an unavoidable part of the house buying process and one you cannot save on. However, it is worth checking out the stamp duty land tax thresholds. For example, a property on the market for £255,000 will be worth negotiating to below £250,000 simply because of the savings you could make on the stamp duty!
Your conveyancing solicitor
Legal fees are an area which is the most tempting to try and save a few pennies, but really is somewhere you don’t want to scrimp too much!
Remember that ultimately your solicitor is responsible from transferring the property from one person to the other and you will work very closely with them for a number of weeks. Ideally you will want to work with one lawyer (not a team) who is qualified, fast and dedicated to high levels of customer service.
Budget conveyancers (legally trained but not lawyers) or cheap solicitors could cost you your purchase or sale by adding weeks to the conveyancing process. And you may still be charged for their services!
The best thing to do is to receive a number of conveyancing quotes and compare them like for like. Be warned that every firm will have a different way of breaking down their fees – which can get confusing when comparing quotes.
So you have finally come to the big day and the day you choose to move on could help you save some pennies! The busiest days of the week are Fridays and bank holidays. Therefore, many removal companies will offer a saving for bookings made on a different day of the week, especially if these are booked far in advance!