- Property repairs
- Property styling
- Real estate agent’s commission
- Mortgage discharge fees
- Conveyancing fees
Whether you’re downsizing, relocating or upgrading, selling a property is exciting! However, there are a number of things you need to consider before you start putting your house on the market – namely the costs of selling a property. From conveyancing fees to real estate agent’s commission, there’s plenty to think about. But how much does it cost to sell a house?
To help you, we’ve put this guide together about all the fees involved in selling a house. Read on or speak to one of our conveyancers if you have any questions.
Costs of selling a house
1. Property repairs
Before you sell your home, you want to ensure it’s in tip top shape. This means tending to obvious defects like peeling paint, rusty guttering, broken windows or holes in the walls. It is equally important to ensure that lawns and gardens are neat and tidy, and the property is clean and uncluttered throughout. Depending on what needs to be done, repairs could cost up to $1000 or more, but if you need to do any major renovations, you will incur much larger costs than this.
2. Property styling
If it’s in your budget, you may wish to get a professional to style your home. This is known as property styling (or showcasing). It could involve hiring furniture if it’s a vacant property or adding fresh, new decor to spruce up the space.
3. Real estate advertising
Advertising costs can cover things like:
‘For Sale’ signboards
Items such as a ‘For Sale’ signboard might be included in the real estate agent’s upfront fee or charged separately. As the vendor, you may also have to make decisions regarding signboard size, inclusion of photo(s), or whether you want a signboard at all. The signboard cost is typically $250–$600.
Preparation of glossy colour flyers for handout at open-house days, or to prospective buyers at private inspections, may be included or charged separately. Approximately $200–$300 should cover this, depending upon complexity, quality and quantity.
Photography is an essential cost of selling a house if you’re going to market. Most homeowners often don’t realise how well their property presents until they view the professional photographs! The photographs will be used in online listings, as well as print advertising and flyers. Most real estate photographers will also include floor plans if you don’t have them already. Photography costs can start from $600 depending on the size and complexity of the property.
Extra advertising may not be deemed necessary where a property is expected to sell quickly, or at the least when there is significant and immediate buyer interest. However, if things are lagging a little, agents may offer a more extensive round of marketing or to extend the marketing efforts for a longer time period.
4. Agent’s commission
Agents will all have their own figure when it comes to their commission. Typically, the range is between 2% to 3.5%. This commission is deducted from the proceeds of the final sale and is not payable up front. Likewise, if your agent arranges the photography, marketing and other costs for you, these are likely to be paid out of the final sale price on settlement.
While many agents will state their commission figure up front as a non-negotiable amount, others may be more flexible. A property that is very desirable, and may well attract a reasonably quick sale, will likely be very appealing to an agent. A reduced commission percentage might enable them to secure the agency agreement on this desirable property.
5. Mortgage discharge fee
When you sell your home, you may be required to pay mortgage discharge fees. If you have a fixed rate loan, you may also have to pay early repayment costs. If you have any questions, please speak to your lender or the experienced conveyancing team at Owen Hodge.
6. Conveyancing fees
Conveyancing is a necessary cost of selling a house. For sellers, conveyancers are engaged to:
- Prepare and reviews the contracts of sale
- Ensure any special conditions of sale are included in the contract
- Conduct title searches
- Attend settlement day and assist with the property settlement process
- Assist with the exchange of contracts
- Prepares and submits a completion statement, carries out pre-completion searches and applies to the buyer’s mortgage lender for the mortgage loan.
- Registers the property in the name of the buyer at The Land Registry
Conveyancing fees can depend on a number of factors (including the complexity of your matter). To get a better understanding of the costs, speak to the conveyancing team at Owen Hodge today. Again, these costs are deducted from the final settlement.
7. Building & pest inspection
While building and pest inspections are not necessary costs of selling a house, some sellers do prefer to get them done. These inspections can give you peace of mind that the property has no hidden problems or highlight any problems that need to be fixed before you put the house on the market.
8. Moving costs
This cost of selling a house is often forgotten about! It also varies greatly depending on the size of your home, whether you already have packing boxes and the amount of furniture you have. This means costs can range from a few hundred dollars to several thousand. If you hire professional removalists, keep in mind this will raise the cost of moving house.
Owen Hodge is here to help
Whether this is your first or fifth time selling a house, Owen Hodge is here to help. Our team of experienced conveyancers and property lawyers are here to answer any and all of your questions. Schedule an initial consultation by calling us on 1800 770 780.
Costs of selling a house: FAQs
Yes, you are still required to pay a real estate agent for their services. However, you may save on advertising costs if you’re selling your home off the market.
Capital Gains Tax (CGT) is the most commonly referred to tax when discussing buying or selling property. Fortunately in most cases you will not need to pay CGT as the law provides an automatic exemption for any capital gains (or loss) that arises from the sale of a taxpayer’s main residence.
Transfer duty, also called stamp duty, is payable by the person buying the house. So it’s one cost that vendors do not need to factor into their sale. However, it is applicable if they are making a real estate purchase for their next place of residence.