Selling a house involves several costs that sellers sometimes underestimate when calculating what they will receive from the sale. Understanding all the cost components before listing gives a realistic picture of the net proceeds from the transaction.

Estate Agent Commission

The estate agent's fee is almost always the largest cost of selling. Traditional high street agents typically charge one to one and a half percent of the sale price plus VAT. On a three hundred thousand pound sale, one percent plus VAT is three thousand six hundred pounds; one and a half percent plus VAT is five thousand four hundred pounds. Online agents charge fixed fees from a few hundred to a few thousand pounds, paid upfront in most cases regardless of whether the property sells. The agent's fee is typically deducted from the proceeds on completion by the conveyancing solicitor.

Solicitor's Conveyancing Fee

The seller's solicitor charges for the legal work of transferring the title to the buyer. For a standard freehold sale, this typically costs six hundred to one thousand two hundred pounds plus VAT, with additional charges for leasehold properties. Disbursements, including Land Registry official copies and other legal searches, add a further fifty to two hundred pounds. Total solicitor's costs for a seller are typically eight hundred to one thousand five hundred pounds all-inclusive.

Early Repayment Charges

If the seller has a fixed-rate mortgage that is redeemed before the end of the fixed-rate period, an early repayment charge applies. These typically range from one to five percent of the outstanding mortgage balance depending on how much of the fixed-rate period remains. On a one hundred and fifty thousand pound mortgage with a two percent early repayment charge, this is three thousand pounds. Variable-rate and tracker mortgages generally have no early repayment charge, and mortgages at the end of their fixed-rate period but not yet moved to the lender's standard variable rate are typically penalty-free to redeem.

Removal Costs

The cost of removing furniture and belongings from the sold property is a selling cost that is sometimes overlooked when calculating net proceeds. A full removal service for a three-bedroom house typically costs seven hundred to two thousand pounds depending on the distance to the new property and the volume of goods. DIY removal with a hired van reduces this cost but requires physical effort and potentially multiple trips.

Energy Performance Certificate

An EPC is required before a property can be marketed for sale. If an existing valid EPC is available from a previous sale or rental within the last ten years, no new one is needed. If a new EPC is required, the cost is typically sixty to one hundred and twenty pounds from a local assessor.

Capital Gains Tax

For most owner-occupiers selling their main residence, capital gains tax does not apply due to Principal Private Residence Relief. Where CGT does apply, for investment properties or properties that were not the seller's main residence throughout the ownership period, it is a significant additional cost. See the dedicated article on capital gains tax on house sales for a full explanation.

Summary

The total cost of selling a house is typically two to four percent of the sale price, comprising estate agent commission of one to one and a half percent plus VAT, solicitor's fees of eight hundred to one thousand five hundred pounds, any early repayment charges on the mortgage, and removal costs. Capital gains tax applies in some cases. Calculating net proceeds by deducting all these costs from the agreed sale price before exchange gives a realistic picture of what the sale delivers financially.