Whozoo tips #33 - What are the upfront costs I need to consider when selling my commercial property?

Published: 04/02/2024

When selling a property in the UK, there are several potential upfront costs that you may need to consider. The specific costs can vary depending on factors such as the value of the property, the services you choose, and any potential legal or marketing requirements.

Here are some common upfront costs associated with selling a property:

Estate Agent Fees:

•If you decide to use the services of a real estate agent, they typically charge a commission based on the sale price. Estate agent fees can vary but are often in the range of 1% to 3% of the sale price. It's crucial to clarify the commission structure and any additional fees with your chosen agent.

Solicitor or Conveyancer Fees:
•You will need a solicitor or conveyancer to handle the legal aspects of the sale. Solicitor fees can vary, and you may be quoted a fixed fee or an hourly rate. Additionally, there may be additional costs for disbursements, such as Land Registry fees and property searches.

Energy Performance Certificate (EPC):
•It's a legal requirement to have a valid EPC before marketing your property for sale. The cost of obtaining an EPC can vary based on factors such as the property size and location but is typically in the range of £50 to £120.

Property Marketing Costs:
•While not a direct upfront cost, you may incur expenses for marketing your property effectively. This can include professional photography, floor plans, online listings, and other promotional materials.

Home Report (Scotland):
•In Scotland, if you're selling a residential property, you may need to provide a Home Report to potential buyers. This report includes a survey, an energy report, and a property questionnaire. The cost of a Home Report can vary.

Conveyancing Searches:
•Your solicitor may need to conduct various property searches to ensure there are no issues affecting the property. The cost of these searches can vary depending on the location and the types of searches required.

It's essential to obtain quotes from estate agents and solicitors, and to discuss any potential costs upfront. Additionally, some costs, such as estate agent fees, are typically paid upon completion of the sale, while others, like EPC and marketing expenses, may be incurred before the sale process begins.
Keep in mind that the figures provided here are general estimates, and actual costs may vary based on your specific circumstances and the professionals you choose to work with.