How to save money when moving home

Moving house is an expensive business, especially if you are moving up the housing ladder. There is no point in committing yourself to a house move to subsequently discover that you have put yourself in financial difficulty.

The average cost of moving is currently almost £10,000, but by following a few simple tips you can reduce this considerably. 

Please find below a list of costs that you may incur, and tips on how you could potentially reduce them.

Removal Costs 

Removal firms can be very expensive, and there are a huge number of factors affecting the cost of removal.  As a rough guide, you should expect to pay from £500 for a one bedroom flat to £2000 for a five bedroom house.

How can I save?

There are many ways that you can cut down your removal costs:

• De-clutter before you move. There is no point in moving belongings and then discovering that you do not require them at the other end. Have a good rummage around - you may even be able to make some money by selling unwanted CD/DVD collections, books , old clothes or even antiques. 

• Avoid moving on peak days such as bank holidays, the end of the month, and Fridays. If you move on a quieter day you will be in a better negotiating position with the removal firm. 

• Think about hiring a van and moving yourself.  I did this once myself, however, it is extremely hard work!  Make sure you factor in the cost of your time, petrol, stress, and unforeseen hassles. 

• Shop around for quotes, and get at least three.  Websites such as helpiammoving.com and reallymoving.com are excellent.  Be wary of anyone giving rough estimates over the telephone.  Until an expert estimator sees your property there is no way of factoring everything in. 

• Choose a firm that is a member of the British Association of Removers who therefore abide by its strict code of practice.

Mortgages 

A lot of people will look no further than their bank for a mortgage when buying a property. Whilst it still makes sense to speak to your bank for mortgage advice, you should also shop around.

A whole market mortgage advisor will have access to every mortgage product available and will be able to recommend the best (and cheapest) mortgage to fit your individual circumstances. It is still worth checking with the lender directly, however, as sometimes they offer lower rates when a broker is involved.
  
Stamp Duty 

This is a tax on buying property that will depend upon your purchase price. Stamp duty thresholds are as follows:
Up to £125,000 - Zero
£125,001 to £250,000 - 1%
£250,001 to £500,000 - 3%
£500,001 to £1,000,000 - 4%
£1,000,001 to £2,000,000 - 5%
£2,000,001 plus - 7%

How can I save?

Unfortunately, stamp duty is a tax payable to the government so there is no escape from paying it. However, if you are looking for property that is priced close to a stamp duty threshold, you should be aware of the tax brackets. For example, you will save £5000 if you agree a price at £250k rather than £251k.

Another factor worth considering is that in areas designated by the government as “disadvantaged”, there is no stamp duty to be paid on properties sold for £150,000 or less.
The loophole that used to allow people to reduce their stamp duty bill by paying over the odds for fixtures and fittings has now been closed.
 

Legal Fees 

When buying a property, expect solicitors’ fees to be around £400 - £1000. You will also need to pay £200 in search fees and a land registration fee of between £70 and £500.
If you are selling a property as well, add on another £300 to £700.

How can I save?

We liaise with solicitors’ firms on a daily basis and have found that cheap can actually work out to be more expensive!  A lot of the cheaper solicitors will hide certain charges that are not included in their initial quotes. We also find that cheap solicitors have extremely high workloads and can, therefore, be slow and difficult to get hold of.  This can cause complications, delays, and even on occasion has caused a sale to fall through.

Be wary of internet based solicitors - it is much better if you are able to deliver and collect important legal documents by hand to a local practice.

It is best to use law firms recommended by friends or colleagues, and concentrate on service and quality. We always recommend to get three quotes, and don’t be afraid to haggle the price. You will be amazed by the discounts you can negotiate.

Alternatively click here to use our conveyancing quote engine.
  

Estate Agents’ Fees 

Estate agents fees’ can vary hugely from as little as £195+VAT for an online estate agent to up to 3% for a corporate high street estate agent.

How can I save?

The biggest saving that you can make with estate agency fees is to employ an online estate agent that will typically charge between £195 - £395. Most online estate agents will advertise on all of the major property portals such as RightMove and Zoopla and offer the same service as a high street agent that charges much more. The only major difference is that you would need to accompany your own viewings, so as long as you have the time and confidence you will save on average £4000 in fees.

If you decide to employ a high street estate agent, you should arrange for at least three valuations.  Most estate agents are willing to negotiate on their fee rather than lose business to competitors, so get your haggling head on! Selling your property is a lengthy process so choose an agent that you feel comfortable working alongside, rather than the pushiest one!

QUOTE "MAILCHIMP" TO RECEIVE A 10% REDUCTION IN ESTATE AGENCY FEES IN AUGUST (Including our £195+VAT Rightmove and Zoopla option).

At turtlehomes.co.uk online estate agents, we use a common sense approach to save our vendors thousands of pounds in estate agency fees whilst still providing a five star service.  If you would like to find out more about our online selling options, please do not hesitate to contact us on (01452) 726421.