BY JOHN ELLIS, FINANCIAL ADVISOR
As house prices continue to soar, cash-strapped buyers will want to keep any moving costs to a minimum. For a family moving into a typical three-bedroomed home, it could cost around €12,000 on average to move and, with additional costs like solicitors fees, surveys and valuation fees, removal costs, stamp duty, home and life insurance, it can stack up quickly. Though some costs are unavoidable, recent research by Switcher.ie found that households could save almost €5,600 with five simple steps.
Solicitor fees
Legal costs can be charged as a flat fee or, more usually, a percentage of the purchase price: typically, between 1% and 3%. Fees vary, so you should always compare multiple quotes. Though cheapest is not always best, opting for a fixed fee could save you thousands.
Auctioneers’ fees
Though prices differ from agent to agent, they will typically cost between 1-3% of the house sale price. Some offer fixed instead of commission-based fees, which could cut prices significantly. Always compare quotes before listing your property and remember to do your research and engage a fully licensed agent with a good reputation and experience in dealing with properties similar to yours.
Removal costs
Can be one of the biggest expenses when buying a new home. Costs will be determined by the distance, the number of bulky, heavy items, and the day of the week you wish to move. Declutter as much as possible, choose an off-peak moving day, ideally midweek, and consider packing yourself to cut average moving costs by 40%.
Mortgage Protection plans
You will need mortgage protection insurance to clear your mortgage balance in the event of death or serious illness during the term of your Mortgage. You can opt for a policy with your mortgage lender but better to shop around for a less costly plan that matches your needs and remember read the policy documents carefully.
Home insurance
You will also need home insurance to protect your new home in the event of fire or other damage. Buildings insurance covers the structure of your home – all four walls and the roof, as well as all permanent fixtures and fittings. You will also need contents insurance to cover personal possessions like clothes, jewellery, and home furnishings. You could qualify for a multi-policy discount of up to 5% when you buy another insurance policy – like car or mortgage protection – from the same insurer.
According to Eoin Clarke, Commercial Director of Switcher: “Moving home can be an upheaval, but doing your research, planning ahead and comparing costs can make for a smoother changeover and save you thousands. Opting for a mid-week move, decluttering where possible, and packing things yourself can minimise removal costs, while a fixed-rate solicitor or estate agent fee can be considerably cheaper than a percentage-based one.”
Remember, research first, use reputable advisors, be aware of hidden costs, compare multiple quotes and read the small print carefully.
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