Finances to consider when moving house
Moving house marks a new milestone in your life and there is a lot to consider if you want to make the process as smooth as possible. It’s natural to be mostly focused on packing and getting your old property ready for new owners but it’s important to not neglect the financial side of things. There are many costs involved, from estate agency fees to removal bills.
The average cost of moving house in the UK is just under £10,000 and this figure includes all the necessary services you’ll need to buy and sell. You don’t want to overwhelm yourself by letting these moving costs mount up so here are some of the finances you need to consider when moving into your new home:
These are what get paid to a legal professional that will manage the sale of your property for you and cover legal concerns like disbursement issues. It may seem like an unnecessary expenditure but with so much at stake, it’s advisable to pay the fees earlier rather than later which can save you from having to fix problems later down the road.
Even in a seller’s market, potential buyers need to be able to visualise living in your property when they visit it. Staging your home for viewings can increase your likelihood of a sale so it’s well worth rearranging your furniture, giving the space a good clean, or splurging on some redecorating. The aim is to make your home as appealing as possible to encourage a quick sale.
This may seem daunting when you’ve already made investments in another property, but a more attractive home is easier to market. To cover costs in the meantime, boosting your credit score could help you use a credit card to fund any revamping. Then you can use the money from the final sale to cover the payments on your credit card.
Estate agent fees are often the biggest expense and the rate of each company will depend on the value of your property. Most will charge you a percentage of the sale price of your home and this is generally 1-2%, although it’s not unusual to pay up to 3.5%.
Value Added Tax (VAT) may also be included in the fee price so it’s best to ask for this upfront.
Depending on your location, you may not be able to move all your belongings yourself which means you’ll have to pay for a storage facility or a moving company to help you out. This can cost a pretty penny if they’re travelling over a large distance or if you need to store your furniture for a while.
Planning ahead and starting to set money aside for this cost in the months running up to moving day means you won’t be blindsided by any heavy fees.