Considerations For Those Moving House

By: Thomas Pretty

When moving house there is plenty to consider, it is not just which estate agent to choose and where you wish to move but a large part is factoring the costs involved. Realising the funds at your disposal is essential, even before you hire an estate agent. The more accurately you can estimate your finances, the easier the process of buying a new property will be.

A primary concern should be calculating how much money you can actually put towards your new home. To arrive at a figure you must take the total funds you possess and subtract the costs of moving, such as legal and estate agent fees and removal company costs. Once you have an accurate estimate of the price of moving, you will be able to surmise how much money you can put towards a new property.

Involved in this figure should be the profit you will make from the sale of your house. When coming to this figure you must make an estimate of what your house will sell for and factor in the remaining amount left on your mortgage. Thankfully finding the figure your house will sell for can be aided by a good estate agent who will be able to estimate the value of your house in comparison to similar properties on the market. At this time it is worth utilising more than one estate agent to get an average price from a range of sources. In working out the profit, you should also include your personal finances in the total figure.

Assessing the size of mortgage you can afford is also an essential part of buying property. As a general rule, your mortgage payments should be no more than a third of your monthly income after tax. The point cannot be stressed enough that you should not overstretch yourself. It is important to be wary of lenders, it cannot be expected that they will lend responsibly so the onus for responsible lending is placed upon you, the borrower. It is usually possible to borrow a sum of three to five times the size of your salary; a good figure to go for if buying as a couple is two and a half times the size of your combined annual incomes.

The actual process of selling your house will cost you money, estate agent fees are a major part of this and expect to pay between one and two and a half percent of the sale price, depending upon how well you negotiate; unfortunately VAT will be added onto this percentage. You may wish to sell your house through property websites alongside the efforts of your estate agent, remember however that some agencies will ensure you sign a selling rights agreement that ties you to their services. Auction is another option but do not expect huge profits, as a percentage applies, as does the charges for legal services.

Solicitor's fees are wide and diverse, just like the quality of services you may receive. An average figure for legal fees is around a half to one percent although this can vary depending on whether your property is freehold or leasehold, as leasehold will mean more work for your solicitor. Although it may be possible to find cheaper solicitors, it is worth remembering that any errors on the legal side of things will cost you dear when it comes to the sale of your property.

Added to these costs is the cost of removal services that should be accounted for just as much as estate agent and solicitor fees. When estimating this cost, evaluate the quantity of possessions you will be moving, whether you will be doing the packing yourself, the location of your house and the distance to your new home; all will affect the eventual price. Receiving a variety of quotes will assist in gaining an accurate figure.

Obviously there is more to moving than purely finding an estate agent and a property then relocating. Selling and buying property can be an extremely stressful experience, hence finding the most efficient, accommodating and effective services is vital. By following this advice you should be able to find the property of your dreams and have a swift and stress-free move.

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