Moving house can be an exciting new chapter, but it’s important to understand the cost of selling a house before you begin.
In this guide, we’ll break down the key costs you need to anticipate, including estate agents cost and solicitor’s fees for selling a property, as well as the costs of buying a new home.
If you’re selling your property, one of the first elements to consider is the estate agent costs. These are typically charged as a percentage of the final sale price but can also be in the form of a fixed fee.
The benefit of a percentage-based fee is that the agent is incentivized to get you the best price – the more an agent achieves for you, the more money they make.
On the other hand, with a fixed fee, the agent walks away with the same fee no matter the result, but this fee structure does offer sellers certainty on exactly what fee they will pay from the outset.
The fees charged by agents tend to depend on the level of service provided.
In today’s fast-moving and often unpredictable property market, where demand can fluctuate and competition among sellers is high, having a proactive agent can be the key to a successful sale. An agent who actively markets your property, engages with buyers, and negotiates effectively can help secure the best possible price while ensuring your home doesn’t linger on the market.
Marketing costs, which encompass the likes of photography, floorplans, for sale boards and connections to the online property portals, are usually paid on top of the estate agent’s fee.
One key cost to remember when selling a property is the Home Report.
If you’re selling a property in Scotland, you are legally required to provide a Home Report. There are several exceptions to this rule, you should speak to your solicitor estate agent and they will be able to advise you on this.
A Home Report is comprised of several parts: the Single Survey, Energy Performance Certificate (EPC), and a Property Questionnaire. It gives potential buyers an in-depth understanding of the property’s condition as well as a formal mortgage valuation.
Conveyancing is the legal process of transferring ownership of a property. In Scotland, sellers need to instruct a solicitor early in the process.
To begin with, your solicitor will review the Home Report as part of the sale. They also manage the missives, the formal exchange of contracts that legally binds the transaction.
Conveyancing fees vary depending on the complexity of the sale, the property’s value, and location. In addition to handling legal paperwork, your solicitor will also discharge any outstanding mortgage, verify title deeds, and oversee the transfer of ownership to ensure a smooth completion.
You can expect to pay slightly more when buying a property, especially if the transaction is more complex.
In Scotland, your solicitor will handle the conveyancing process, which includes reviewing the Home Report (a legal requirement for most properties), submitting an offer on your behalf, and negotiating the missives (the legal contract between buyer and seller).
They will also carry out necessary searches, such as checking property title records, local authority information, and environmental risks, all of which incur additional set costs. Unlike in England, the legal commitment happens earlier in the process once the missives are concluded.
Your solicitor should provide a detailed breakdown of these costs in their initial quote, helping you budget accordingly.
LBTT is an important cost to remember when buying a property in Scotland. This is Scotland’s equivalent to Stamp Duty, a term which is more commonly recognised. This tax is payable on residential property purchases over £145,000 and is calculated based on the property’s price.
Here’s a breakdown of the LBTT rates as of 2024:
It is important to remember that the percentages shown above apply to the amount within that band only and are not payable on the full amount.
For example, if you were to buy a property for £325,000 you are NOT paying 5% on £325,000. Instead, you would be paying 0% on the amount up to £145,000, 2% on the amount between £145,001 to £250,000 and 5% on the amount between £250,001 to £325,000 .
So, in this case, for a home purchased at £325,000, your LBTT would be £5,850.
First-time buyers are eligible for LBTT relief, with no tax payable on the first £175,000.
ADS is a supplementary tax and is payable by anyone who is purchasing a property in Scotland and already owns one or more residential properties anywhere in the world. The current ADS rate is 8% of the total purchase price of the additional dwelling.
If you’re taking out a mortgage, there are several costs to consider:
Arrangement Fee: Some lenders charge an arrangement fee, which can range from £500 to £1,500.
Mortgage Broker/Advisor Fee: If you use a mortgage broker, they may charge a fee which is typically around £500 or a percentage of the mortgage amount.
Early repayment fee: If you are still within the fixed term of an existing mortgage and you don’t plan to port the mortgage to your next property, you may incur an early repayment fee. A mortgage advisor can advise you on your options.
Another cost of selling a property is hiring a removal company. The price of this service will depend on the distance between properties and the amount of furniture and personal items you need to transport.
For local moves within Edinburgh or East Lothian, prices typically range from £500 to £1,500. Larger homes or long-distance moves can cost significantly more.
In addition to the main expenses, there are several smaller costs that can add up during the process of moving home:
Finally, it’s wise to budget for unexpected costs that may arise during the moving process. These can include:
Setting aside an emergency fund can help you manage these unforeseen expenses without stress.
By understanding these expenses in advance, you can budget effectively and avoid any surprises along the way.
Whether you’re selling your property in the heart of Edinburgh or buying a new home in East Lothian, being financially prepared will make the process smoother and less stressful.
If you would like to discuss your move and have a better understanding of costs for your individual circumstances, please reach out to our team.
Not all will be applicable in all circumstances, your estate agent or solicitor will be able to advise you on your personal circumstances.
Again, not all of these will be applicable in all circumstances, your estate agent or solicitor will be able to advise you on your personal circumstances.
Francesca joined Coulters back in June 2021 as a Senior Valuer, and is now the Area Director of the Edinburgh branch. She specialises in residential sales in Edinburgh, and also does lots of valuation work in Mid and East Lothian. Prior to working for Coulters, Francesca graduated from the University of Edinburgh with a First-Class Honours Degree in International Business with French, before spending 5 years working at Drummond Miller, where she progressed from trainee estate agent to Head of the Estate Agency. She has achieved a diploma in Financial advice, as well as graduating with her SPC Property Practice Certificate, both of which enhance the quality of advice that she can provide to clients on their property journey. In her spare time, Francesca can be found playing Netball or travelling the country in the campervan called ‘Phillipa’, which she converted with her partner.
