A survey by Good Move has found movers were misjudging the cost of estate agents fees the most – expecting, on average, to pay £900.
In fact, the fees charged by most estate agents, according to the Money Advice Service, is somewhere between £2,268 and £6,804 for an average-priced house.
It means many homebuyers are underestimating this cost by as much as £5,900 in some cases.
But it’s not just estate agents fees which are being miscalculated by potential buyers. According to the survey many are underestimating the mortgage fees by as much as £2,000.
Indeed, those surveyed thought the cost was, on average, around £393 but figures from the Money Advice Service show these fees can be as much as £250 for a booking fee, £2,000 for an arrangement fee and £150 plus for a valuation.
Removal fees
Buyers were far more realistic, however, when it came to removal fees and were actually overestimating the cost.
According to Good Move, of the 2,000 surveyed 38% thought the cost moving their belongings was a priority and saved up for this first. In comparison only 29% put stamp duty as a savings priority, despite the fact it is the biggest expense when buying a house.
Ross Counsell, director at Good Move, said: “Entering the property market for the second time around can be a long and daunting process, with the extra elements and costs associated with both buying and selling a property.
“One way to reduce some of the costs associated with moving and to sell your house quickly is to consider alternative methods, such as using a quick house sale company, like Good Move, which will complete your sale within three weeks with no chains involved and cover all the costs of selling your house.”
Moving costs: Estimates v reality (Source: Good Move)
| What Brits think each aspect of moving costs | Estimated cost by Money Advice Service | Monetary difference (based on the highest possible cost) | |
| Removal Costs | £646.77 | £300-£600 | Overestimated by £46.77 |
| Legal Fees | £892.24 | £850-£1,500 | Underestimated by £607.76 |
| Estate agent fees | £892.24 | £2,267.98 – £6,803.94 (based on the average house price £226,798) | Underestimated by £5,911.70 |
| Mortgage fees | £393.06 | A booking fee of £99-£250
An arrangement fee of up to £2,000 A mortgage valuation fee of £150 or more |
Underestimated by £2,006.94 |
| Surveyor’s costs | £460.43 | £250-£600 | Underestimated by £139.57 |
| Total | £3,284.74 | £5,916.98 – £11,903.94 | Underestimated by £8,619.20 |
