If you're buying a building to renovate or convert, be aware of the fees you will have to pay
Estate Agents' Fees
Most agents charge a fee of around 1.5% of the cost of a property, which is payable on completion. However, there are some agents who charge more for multiple agencies, some for sole agency and some charge a flat rate per property.
Variations may depend on regional markets, which will be reflected in the charges but be aware that all agents have to confirm their fees in writing before accepting instructions to sell. There are also some agents who might charge for advertising, publicity, internet presence, photography and layout plans.
Home Information Packs (HIPS)
It is illegal to offer a property for sale in England and Wales without a HIP, although if the HIP has been ordered and confirmed then the marketing of the property can proceed. Some agents might also include the cost of a HIP.
Most lawyers will make a charge based on the price of the house to be purchased although some might make a deal where they are acting on the purchase and sale. They would normally charge additional costs for land registry fees and local searches and these charges may vary depending on where the transaction is taking place. The average cost is £500 per sale or purchase. However, if the property is unregistered or becomes contentious this fee may increase.
A Royal Institute of Chartered Surveyors' (RICS) survey cost will depend on the style and age of the property, the type of survey and/or valuation required by the client and can therefore range from £200 - £2000 accordingly.
£0 - £125,000 - 0%
£125,001 - £250,000 2%
£250,001 - £925,000 5%
£925,001 - £1.5 million 10%
Over 1.5 million 12%
Stamp duty is payable on completion by the solicitor on behalf of the purchaser.
Words: Chris Brown, president of the National Association of Estate Agents