Selling your first home can feel exciting and straightforward. You accept an offer, instruct a solicitor and start planning your move. However, many first-time sellers quickly discover that there are several hidden costs involved — expenses that are not always obvious at the outset but can significantly reduce your final profit.
While most people budget for estate agent commission, there are additional fees and financial considerations that can easily be overlooked. Understanding these in advance helps you plan realistically and avoid unnecessary stress during the transaction.
Here is what every first-time seller in the UK should know.
1. Estate Agent Commission
Estate agent commission is usually the most visible cost of selling a property. Fees typically range between 1% and 3% + VAT of the final sale price, depending on whether you choose sole agency or multi-agency representation.
For example:
- Sale price: £280,000
- Commission at 1.5%: £4,200
- VAT at 20%: £840
- Total: £5,040
Although commission can seem substantial, choosing experienced estate agents in Saffron Walden can help secure a stronger sale price and reduce time on the market. Skilled negotiation and accurate pricing strategies can offset the fee by achieving a higher final offer.
Before signing an agreement, always confirm:
- Whether VAT is included in the quoted fee
- The contract length
- Any withdrawal or cancellation charges
- What marketing services are included
A clear understanding of your contract terms protects you from unexpected charges later.
2. Solicitor and Legal Fees
You will need a solicitor or licensed conveyancer to manage the legal process of selling your property. Legal fees typically range from £800 to £1,500 + VAT, depending on complexity.
These fees usually cover:
- Drafting the contract
- Issuing property information forms
- Responding to buyer enquiries
- Coordinating exchange and completion
- Transferring funds
However, first-time sellers are often surprised by additional legal disbursements, such as:
- Anti-money laundering ID checks
- Bank transfer (telegraphic transfer) charges
- HM Land Registry title copies
- Indemnity insurance policies
- Leasehold documentation fees
If you are selling a leasehold property, you may also need to pay for a management information pack, which can cost between £200 and £500 or more.
Requesting a detailed breakdown of all expected legal costs before instructing your solicitor helps avoid misunderstandings.
3. Survey-Related Negotiations
Although buyers usually pay for their own survey, the findings can have financial consequences for the seller.
If the survey reveals issues such as:
- Damp
- Roofing problems
- Electrical faults
- Structural movement
You may be asked to:
- Carry out repairs before exchange
- Reduce the agreed sale price
- Provide a financial allowance
These negotiations can cost thousands of pounds and may arise late in the process, when you are already committed to your onward purchase.
Setting aside a contingency fund can help manage this risk.
4. Mortgage Early Repayment Charges
If you are still within a fixed-rate or discounted mortgage period, selling your home could trigger early repayment charges (ERCs).
These penalties typically range from 1% to 5% of the outstanding mortgage balance. On a £180,000 mortgage, even a 2% ERC would amount to £3,600.
In addition, lenders may apply:
- Mortgage exit administration fees
- Daily interest charges up to completion
Before listing your property, request a redemption statement from your lender so you understand exactly how much you will owe upon completion.
5. Overlapping Mortgage and Council Tax Payments
Property transactions do not always align perfectly. If your sale completes before your purchase — or vice versa — you may face temporary financial overlap.
Possible overlapping costs include:
- Continuing mortgage payments until completion
- Council tax and utility bills
- Buildings insurance
- Short-term rental accommodation
Even a short delay of a few weeks can create additional financial pressure if not anticipated.
6. Removal and Storage Costs
Moving expenses are another frequently underestimated cost.
Professional removal companies typically charge between £400 and £1,500, depending on:
- Property size
- Distance of the move
- Packing services required
- Accessibility of the property
If your completion dates do not align perfectly, you may also require storage facilities, which can add further expense.
Obtaining several quotes in advance allows you to compare services and manage costs effectively.
7. Energy Performance Certificate (EPC)
An Energy Performance Certificate is legally required before marketing your property. If your existing certificate has expired (they are valid for ten years), you will need to pay for a new one.
Costs usually range between £60 and £120, depending on property size and location.
Although modest compared to other fees, it is a mandatory requirement.
8. Capital Gains Tax (For Non-Primary Residences)
If the property you are selling is not your main residence — for example, a buy-to-let or inherited property — you may be liable for Capital Gains Tax on any profit made.
The amount payable depends on:
- The size of the gain
- Your income tax band
- Available allowances
Professional tax advice is recommended if you believe CGT may apply.
9. Indemnity Insurance Policies
During the conveyancing process, issues such as missing building regulations certificates or historic alterations may require indemnity insurance to protect the buyer and their lender.
These policies can range from £20 to several hundred pounds, depending on the situation.
While not always necessary, they are common in older properties and can be an unexpected expense.
How Much Do First-Time Sellers Typically Pay?
On average, sellers in the UK spend between 2% and 5% of their property’s value on selling-related costs.
For example:
- A £250,000 property may incur £5,000–£12,500 in total expenses.
- A £350,000 property may see £7,000–£17,500 deducted before proceeds are received.
The final figure depends on mortgage arrangements, property type, location and whether any issues arise during the sale process.
Final Advice for First-Time Sellers
Selling your first home is a major milestone, but it is important to approach it with realistic financial planning.
To protect yourself:
- Request detailed quotes from estate agents and solicitors
- Check your mortgage terms carefully
- Budget for removal and preparation costs
- Allow a contingency fund of at least 1–2% of your property value for unexpected expenses
Being financially prepared ensures your first sale remains a positive and profitable experience. With proper planning and professional guidance, you can move forward confidently — knowing exactly what to expect when completion day arrives.
