We all know house buying and moving is an expensive business, but have you ever stopped to think about how much moving can cost? Comparemymove.com reports that it will cost the average UK homeowner £8885.66 to move house in 2019. That’s a lot of money when you’re in the midst of solicitors fees, stamp duty and eyeing up a new sofa.
This guide looks to inform all house movers, first time buyers and property owners on how to save precious pennies when looking to move onto somewhere new.
New Vs Traditional Estate Agents
On average, a traditional estate agent is expected to earn 1.42% commission of any property’s sale value. As of 2016, The Property Ombudsman now states that this fee must include the 20% VAT. This has reduced the cost a seller is required to pay to their agent (or at least, reduced the number of sellers being stung by a hidden cost), but if the average house sale is £243,639, the average commission paid to an agent is £3459.67. The sting could have thrown mover’s finances out of balance and lead them to need an emergency loan or to borrow money from family.
As technology continues to encroach on every industry, this fee has now become somewhat optional. New estate agencies, such as Purple Bricks, have brought innovative business models to the industry and now offer to sell client’s homes on internet-only listings and wave the percentage commission fee. Although the policy varies between agencies, Purple Bricks charge a one-off fee, instead. This can be paid when a property is listed or after the property has sold, though packages do vary.
‘New’ Estate Agents could be the preferred route for properties of higher value, as the owners are not subjected to the percentage-based agent fee which can reduce moving costs by thousands of pounds.
Reports from the data collection agency, TwentyCi, also claims that PurpleBicks, who are the UK’s largest online estate, are beating the average time taken to complete a sale by one week. This brings the average listing time down form 52 days to 45 days. The same study reports that PurpleBricks also receive the second highest price for a property when compared to it’s top ten closest traditional competitors. This means homeowners cold save thousands, sell quicker and for an extremely respectable price at the top end of the market value.
Sellers could need to be aware of the limitations of online-only estate agents. The valuation of properties could be misleading or wrong as online estate agents utilise online information rather than utilising a knowledge of the local property market. Unusual properties, such as houseboats or conversions, are most likely to be subject to the biggest price discrepancy and could suffer without local expertise. Depending on the service package, the property owner could be responsible for showing the house to buyers. This could be extremely time consuming.
The Best Time To Move House & Save Money
Research shows that Friday is the most popular day of the week to move in the UK, reports comparemymove.com. This is not unsurprising as home-movers could then focus on getting the property straight and organised over the weekend and do not have to sacrifice too much of their annual leave or eat into their week-day plans. Interestingly, Thursday is the most expensive day to move.
The same study shows that Sunday is the cheapest day to move, for inverted reasons. Those who have moved to a new house will confirm it can be an extremely stressful experience and many opt. to take time off work to ensure there are no hiccups with the move.
As with most services, removal costs could work out cheaper when they are booked in advanced.
Summer is also the most expensive time of year to move.
How Much Could You Handle Yourself?
It’s no surprise that hiring a moving van and handling the heavy lifting yourself is the cheapest way to go. There are drawbacks here and considerations for self-removal could include:
- How much are you moving? – this may require multiple vehicles or a lot of backwards and forwards, racking up fuel costs.
- Fees for temporary van insurance and appropriate licensing.
- Heavy lifting
- Time required to pack all belongings and then unpack
- Potential damages during transit – could incur costs.
- Cost of packaging materials
If you are moving locally, you won’t spend too much on fuel and could make hiring a van a viable cost. It is possible to hire a removals company to pack your home up if you do not want to spend too much time on that yourself. Ultimately, it depends on your time allowance and how willing you are to allow your move to encroach onto your everyday life as the process is time-consuming.
Moreover, handling the move yourself could afford you the most control over the process. This means you could do it little by little or do it in one big push. Prices to hire a self-driving moving vehicle will vary and are usually calculated based on distance. If you have access to appropriate vehicles, total costs could be much lower.
Hiring a professional removals company offers more flexibility than you might originally have thought. Most services allow you to book them for just packing, moving or unpacking or a combination of all three services. Consider packing your items up yourself to declutter. This could reduce the amount you require moving and thus reduce the cost of the service. You could then benefit from the professional movers and efficient unpacking service.
Consider asking for the company’s insurance policy to check to find out if you are liable for any damage caused in transit. Although they might be a professional service being paid to do a job, you are likely to drive more cautiously and take better care of your belongings. In turn, removals firms will insist on a certain quality of packaging materials to protect your items.
Comparemymove.com states that the average cost of a removal company costs £1192.67. If you are planning to move on your completion date, delays could also incur a charge per hour. Although this will be out of your control, you could be responsible for fees up to £50 per hour, adding to your original bill. Many do not factor the cost of a removal company, or the additional charges and require a short term loan for emergency financing.
Moving to a new house and trying to save money can be stressful, particularly because there are often things beyond your control; damage to your belongings, issues with the new home that prevent you from staying there, temporary accommodation, hidden or unexpected agent fees and so much more. Saving money could allow you the financial cushion you need in such an emergency.
Wizzcash are a payday loan provider, issuing short term loans in the event of an emergency. Wizzcash are not a long-term solution to any financial situation but can provide emergency funding for approved customers. We are registered with the FCA and follow a strict lending criteria but if you experience a financial emergency when moving home, you can find out more about our services and lending criteria, today.