What Are All the Costs of Selling a Property?
The costs of selling a property are usually the agent's fee, legal or conveyancing fees, mortgage redemption or early repayment charges, required certificates, preparing the home for sale, moving costs and any tax on the gain. In the UK these often add up to about 2% to 3% of the price before tax. In the US, commissions and closing costs have traditionally been higher. In India and Dubai the split between buyer and seller differs, so check local custom before you set your price.
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This is general information, not tax or legal advice. Fees vary and tax rules change; check the official sources in your country before you sell.
The full seller's cost list
- Agent fee or commission, plus VAT or GST where it applies.
- Legal or conveyancing fees.
- Mortgage costs: redemption fee, early repayment charge, or a fee to release the mortgage.
- Certificates and paperwork: for example an EPC in England, or a no-objection certificate from the developer in Dubai.
- Preparing the home: repairs, cleaning, staging, photos.
- Moving costs: removals, storage, overlap of two homes.
- Outstanding charges: service charges, ground rent, HOA fees, society dues and property tax must usually be cleared.
- Tax on the gain: capital gains tax or similar, unless an exemption applies.
Country notes
England. Estate agents typically charge a percentage plus VAT. Your main home is usually exempt from capital gains tax. For a second home or buy-to-let, gains are taxed at 18% or 24% depending on your income, after the £3,000 annual exempt amount (2026 to 2027), and UK residents generally have to report and pay within 60 days of completion.
US. Commissions are negotiable and, since 2024, sellers are no longer automatically expected to pay the buyer's agent. Add title, escrow and transfer taxes, which vary by state. If you owned and lived in the home for at least two of the last five years, you can usually exclude up to $250,000 of gain ($500,000 for married couples filing jointly).
India. Brokerage, plus capital gains tax. Property held for more than 24 months is long-term; for sales after 23 July 2024 the rate is 12.5% without indexation, with a transition option for some older purchases by resident individuals. Buyers deduct TDS on the price, at a higher level for NRI sellers. Reinvestment exemptions may apply.
Dubai. By custom the buyer usually pays the 4% DLD transfer fee, but this can be negotiated. Sellers often pay a developer NOC fee, clear service charge arrears and pay to release any mortgage. Individuals generally pay no UAE tax on the gain, but your home country may tax it.
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Worked example (England, example numbers)
You sell a buy-to-let flat for £300,000.
- Agent fee 1.2% + VAT: 300,000 x 1.44% = £4,320
- Conveyancing: £1,500
- Removals and cleaning: £1,000
- Selling costs: £6,820, about 2.3% of the price
Capital gains tax:
- Bought for £200,000, with £4,000 of buying costs and £10,000 of improvements (a new extension, not repairs).
- Deductible selling costs (agent and conveyancing): £5,820
- Gain: 300,000 - 5,820 - 200,000 - 4,000 - 10,000 = £80,180
- Less annual exempt amount £3,000 = £77,180
- Tax at 24% (higher-rate taxpayer): £18,523
Total cost of selling, including tax: 6,820 + 18,523 = £25,343. Net cash after repaying, say, a £150,000 mortgage: 300,000 - 25,343 - 150,000 = £124,657.
Common mistakes
- Pricing the home on "what I need" without subtracting selling costs and tax.
- Forgetting an early repayment charge on a fixed-rate mortgage.
- Missing the UK 60-day reporting deadline on a second property.
- Treating repairs as improvements for tax. Only genuine improvements are deductible.
- In Dubai, not budgeting for the developer NOC and service charge arrears.
Red flags
- An agent quoting a high asking price to win the instruction, then pushing price cuts.
- Long tie-in periods on agency contracts.
- Unclear "admin" or "marketing" fees on top of commission.
The full selling section, with cost tables for England, the US, India and Dubai, is in Real Estate: Everything You Need to Know.
FAQ
What percentage of the sale price goes on costs?
In England, about 2% to 3% before tax is common. Elsewhere it can be higher, especially where the seller pays both agents.
Is selling my main home taxed?
Usually not in the UK, and in the US there is a large exclusion if you qualify. In India, gains on a home can be taxed unless an exemption applies.
Can I negotiate agent fees?
Yes, in most markets. Compare at least three agents on fee, contract length and evidence of recent sales.
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Everything You Need to Know. £1450.00 one-time, instant download.