How to save money when purchasing or selling your home

The average costs of buying or selling a home can be astronomical - even without considering the property price itself. Once you factor in the conveyancing expenses, insurance policies, valuation fees, mortgage charges and extra moving-day costs, you can soon arrive at a figure of over £5,000. That’s before you add on stamp duty and estate agent fees, which take percentages of the purchase price. 

Then there are the potential additional costs of delays and failed transactions, which could include everything from money lost on surveys to storage costs if you need to vacate a property. Over a quarter of all residential property sales fail, and this alone results in an average of £2,700 of wasted fees and expenses.

With this in mind, let’s look at proven ways to save money and avoid unnecessary costs, whether selling your current property or buying a new home.

Saving money as a home buyer

Negotiate, negotiate, negotiate!

This is your best chance to save money on securing your new home. Don’t be afraid to offer less than the listing price, so long as the figure is still sensible. In the UK, buyers are sometimes reluctant to negotiate. But there’s no need to feel awkward. The estate agent will relay your offer, and you won’t need to deal directly with the seller.

Get the best mortgage

Shop around for mortgage lenders with reduced survey and application fees that don’t come with a high-interest rate. Sometimes, low-interest mortgages come with high set up fees, but this may save you money in the long term.

A mortgage broker will know which companies are offering enticing incentives and can advise whether a fixed-rate mortgage would be right for you. Some won’t even require you to pay a fee, instead getting a commission from the banks for the sale. Brokers often have direct contact with the banks and can push to get your deal closed, so they’re particularly helpful if you’re self-employed or need to get moving quickly.

Save money on surveys

A HomeBuyer report is cheaper than a complete building survey. The more affordable option should cover your needs unless you’re buying an older property or one needing repair, but you should balance the cost benefit with the risk of the HomeBuyer report not being as comprehensive. 

Consider using your lender’s surveyor, as you could avoid extra costs and delays by having them upgrade their valuation into a HomeBuyer report rather than engaging someone else. If the survey reveals issues, take the opportunity to renegotiate. Get quotes to fix any problems and seek to reduce the buying price by an equivalent amount.

Save money on legal fees

Choose a conveyancing solicitor offering a no-sale, no-fee service at a fixed, rather than hourly, rate. As conveyancing searches cost £300 or more, select a firm that provides free replacement searches when an initial purchase fails. In all cases, scrutinise their contract for any hidden extra fees.

Save money on fixtures and fittings

Get a written agreement from the seller that specifies everything included in the sale. You don’t want any surprise replacement costs on moving day.

They won’t remove fixtures such as kitchen cabinets or plug sockets, but sellers can often exclude kitchen items such as fridges or dishwashers, or soft furnishings like blinds and curtain poles. Other more thrifty sellers have even been known to take the smoke alarms and all their lightbulbs. Unless there’s a written agreement, there’s nothing technically stopping them from pulling up the carpets as well. 

Investigate auction options

Although not for the fainthearted, it’s sometimes possible to get a bargain home at auction. Be cautious and thoroughly check any property before bidding.

Be cautious with leaseholds

Leasehold is a type of land tenure that means you only buy the right to occupy a piece of land for a given time. Ground rent has now been abolished for new leaseholders since 30th June 2022, so that’s one less thing to worry about, but there’s still some aspects to watch out for.

Look out for expensive clauses that up the cost. You want a service charge that seems stable and a suitable reserve fund built up in the event of unexpected repair works being required. Otherwise the property might be mismanaged and in risk of a price hike. Also make sure your leasehold has a good length of at least 100 years on it. It may sound like a long time, but this is typically the point when it is expected to get renewed. 

Do what you can to avoid a sale falling through

Failed property transactions cost an average of £2,700. Housecure is designed to save you time and money by helping you avoid common pitfalls and make home-buying a quicker process. Sales have a better chance of completing, and you can showcase your buying credentials to sellers, so the odds that your offer is accepted increase significantly. Sellers are also more likely to accept lower offers from buyers they can rely on.

Saving money when selling your home

Save money on solicitor’s fees

Locate a well-thought-of, no-sale, no-fee solicitor, as transactions can fail for issues completely outside of your control. A proactive counsel will speed up the selling process when you find the right buyer. Your estate agent’s licensed conveyancer may not be your best option, so shop around before selecting a lawyer.

Choose the best estate agent

There are a lot of choices, and you need to weigh up small, local agencies vs bigger chains as well as online estate agents and even hybrid agencies that combine the best of an online and a high-street agency. Costs alone aren’t a sufficient basis for making a decision, so carefully assess each agency’s reputation. You’ll want someone who you trust, who understands your needs and is attracting the right type of buyer to suit your property. If you locate an excellent estate agent whose commission rate is off putting, then ask if they will negotiate a lower fee.

Save money getting your home sale-ready

You don’t need to spend thousands remodelling your house before putting it on the market but you do want to make it as attractive as possible to a potential buyer. Decluttering, painting rooms in a neutral colour, sprucing up the garden and making everything clean and tidy won’t break the bank but will nevertheless make a positive impression on buyers so you are more likely to achieve your listing price.

Save money with online services

Platforms like Housecure can save you thousands of pounds and offer a faster, safer service. Selling your house can be an uncertain process. Unprepared buyers cause costly delays, while uncommitted ones might withdraw their offer before completion or resort to gazundering. Worse, you may have to accept a lower sale price for having to put your property back on the market. Housecure gives you clarity as you can check how prepared, committed, and credible buyers are before accepting their offer so you enjoy a more secure, stress-free, money-saving experience.