When you buy a new home, there are a few extra costs that you’ll have to think about over and above your mortgage, insurance, maintenance and repairs. Often these less-obvious costs of moving home take some homeowners by surprise. Planning a moving budget is a good way of determining how much you need to spend and where you could cut costs. To help you get started, here are some of the costs to consider when buying a new home and selling your existing home.

Lender fees

Buying a new home and getting a new mortgage with another lender could mean your current lender charges a mortgage discharge fee, settlement fee or early exit fee for ending your fixed term early. Check with your lender or your mortgage adviser to find out these costs apply. Or consider getting a new mortgage with your existing lender to save on these costs.

Bridging finance

When buying a new home it’s not always possible to sell an existing home first. In this case, you may need bridging finance – a short-term loan to cover the time between selling your existing home and buying your new home. This type of loan lets you make repayments on your existing loan and then pay off the interest on your bridging loan once your home is sold.

Real estate agent fees

A professional and experienced real estate agent will market your property, help you price it correctly, and manage the sales process from start to finish. Real estate agents charge either a flat service fee which stays the same no matter how much your home sells for, or a percentage commission based on the sale price of your home. Be sure to discuss the real estate agent fees with the agent before you commit to a contract.

Marketing costs

Marketing costs include things like professional photography, home styling or staging, signage and in-print or online advertising, all of which help get your home in front of potential buyers and get the best sale price possible. These costs can vary depending on which real estate agent you work with, but they’re undoubtedly beneficial in helping you achieve the maximum sale price for your existing home.

Conveyancing fees

These are the legal fees that you’ll pay to your licensed conveyancer or solicitor to manage the documentation required for the transfer of ownership of a property from one person to another in any real estate sale. These are essentials costs and are unavoidable so be sure to factor these into your budget.

Moving expenses

You’ll also need to include these costs in your moving budget:

• Movers – depending on how much you have in your home and how far you’re going, you may be able to cut costs by doing some of the moving yourself, perhaps moving some of the smaller items or getting friends in to help shift some of the lighter pieces of furniture.
• Storage – sometimes it’s not possible to move directly from your old home into your new one and you may need to pay for storage of your furniture until your home is ready for you. Declutter as much as you can before you start packing to minimize the cost of storage.
• Cleaning – moving out of a rental may require you to pay for a professional end-of-tenancy clean. Shop around for the best price or consider doing it yourself to save on cleaning fees.
• Packing materials – check out your local supermarket for cardboard boxes and packaging material, which is usually free to anyone who collects it, or ask around anyone who has recently moved and re-use old boxes. Use clothing, bedding or towels as space fillers to pack between breakable items.

To find out more about finance options for a new home, get in touch with the team of Mortgage Express branded mortgage advisers.