What are the potential fees and costs associated with using a quick house sale company?

The cost of using a quick house sale company is usually made up of either separate charges, deductions from the agreed price, or a lower purchase offer that allows the buyer to cover its costs and risk. The headline offer is therefore not necessarily the same as the amount you will receive. Assess the net proceeds and the contractual obligations rather than comparing offer prices alone.

Potential costs can include:

• Valuation or inspection fees: some companies arrange a property valuation, survey or inspection without charging the seller, while others may pass on the cost. Confirm whether any initial assessment is free and whether a charge becomes payable if you do not proceed.
• Legal and conveyancing costs: the company may offer to arrange or contribute towards conveyancing, but this should not be assumed. Establish who appoints the solicitor, whether you can use your own conveyancer, and whether the quoted amount includes searches, identification checks, leasehold work and VAT where applicable.
• Administration or arrangement fees: a company may apply a charge for processing the transaction, preparing documents or arranging a buyer. Check whether this is a fixed amount, a percentage of the price, or included within the price reduction.
• Referral or intermediary charges: if another party introduced the enquiry or is involved in arranging the sale, ask whether its fee is paid by you or deducted from the proceeds. A referral cost should be identified before you commit.
• Mortgage redemption costs: your lender may require the outstanding mortgage balance, interest up to completion and any early repayment charge to be paid from the sale proceeds. These are lender costs rather than fees charged by the quick sale company, but they affect the amount left for you.
• Property-specific legal costs: leasehold properties may involve management-pack fees, notice fees, deed-of-covenant charges or other landlord and managing-agent costs. Missing documents, restrictive covenants, boundary disputes, planning issues or title defects can also require additional legal work.
• Specialist work: properties affected by subsidence, contamination, structural defects, tenancy issues or probate may need reports, certificates, indemnity policies or specialist legal advice. Confirm whether these costs are paid by the company, deducted from the price or left for you to meet.

Some expenses are not transaction fees charged by the buyer. For example, tax may arise from your individual circumstances. Capital Gains Tax can be relevant to some second homes or investment properties, while probate, divorce and company ownership can create separate professional costs. Stamp Duty Land Tax is generally a buyer’s tax, but the exact position can depend on the transaction. Obtain independent tax advice rather than treating a company’s estimate as personal tax guidance.

Pay particular attention to conditional charges. A contract might state that legal costs, valuation fees or administration charges become payable if you withdraw, fail to provide information, or the sale does not complete. It may also contain provisions allowing the company to revise the offer after a survey, title review or inspection. These terms should explain what can trigger a change and how it is calculated.

Before signing, request a written statement showing:

• the agreed purchase price;
• every deduction and whether it is inclusive of VAT;
• which legal, valuation, survey and search costs are covered;
• any mortgage or other liabilities expected to be settled from the proceeds;
• charges payable if you cancel or the transaction fails;
• the circumstances in which the offer can be changed; and
• the estimated net amount due to you on completion.

Have the contract reviewed by an independent conveyancer, particularly where the offer is conditional or the proposed deductions are unclear. Ask the conveyancer to distinguish between costs payable to the quick sale company, sums payable to third parties and liabilities that already exist against the property. This makes it easier to compare the proposal with other sale routes on a like-for-like net basis.