Selling your home in NSW?
Do you want to save money on fees and commissions?
We can help.
We think you’ll agree that understanding what you are being charged is very confusing.
However, knowing the process can save you thousands of dollars.
Having assisted over 3,000 property owners find the best agent to sell their property, we will share our insight into what agents charge in Sydney, NSW and surrounds and explain how the sales process works.
But before we go into that:
Select Selling or Renting (in map) to show correct type of commission rate for your situation.
The figures shown are an average. Agents charge different amounts based on a range of factors including property, price and likelihood to sell.
Let’s get started.
NSW real estate agent commission rates and fees vary by geographical area.
However, agents generally charge a commission of between 1.8% and 3.5% to sell a house or unit.
This rate varies depending upon the location of the property.
In city and metropolitan areas where property prices are high and there are more agents competing for your business, prices can range between 1.8% and 2.5%. In regional areas where properties generally take longer to sell and values are not as great, higher commission rates of between 2.5% and 3.5% are the norm.
Our research shows the average commission rate in NSW is around 2.10%, the second lowest rate in the country.
This makes the commission on a $500,000 property to be $10,550, just $200 above the average commission on the sale of a property in NSW.
Real estate agent fees are not regulated in NSW.
Yes, you read that right!
But it gets better:
There are also no State based industry or Government guidelines or regulations. This means that you are free to negotiate with your chosen agent when signing your contract.
Things to consider when entering into price discussions with an agent are:
Use the real estate agent fee calculator below to find out how much it will cost to sell your property in NSW.
Amounts calculated include 10% GST, but exclude other costs an agent may charge such as advertising and marketing.
Enter your property value and local agent fee percentage here:
A word of caution:
Deciding which real estate agent to sign up to sell your property can be a daunting experience.
Don’t we know it!
However, it is in your best interest to spend some time comparing your local agents against each other to find the one that is right for you. It will also give you the information that will allow you to negotiate more comprehensively on a commission rate.
Our website can help you compare local agents and make the decision easier.
We will show you how to find out and compare information about:
Questioning your short list of agents personally can also help with your decision.
Ask questions such as:
Ask each of the agents you are comparing for references.
A good agent will be able to supply you with plenty of references, both written and verbal. A referral from a friend or family member can be useful in identifying an agent to research, but is not to be solely relied on when deciding which agent to sign up with.
When selling your property in NSW, you may also be liable for fees other than the commission.
Let’s take a closer look.
A NSW real estate agent may also charge you fees for:
Did you know?
Online advertising in NSW is mostly done through domain.com.au and realestate.com.au.
These are the dominant real estate advertising websites in NSW and receive the most traffic from potential buyers.
What are their fees?
They range from around $400 for a standard listing and up to $5,000 for a premier listing on realestate.com.au in high value suburbs such as Vaucluse.
To begin with:
Traditional media such as newspapers and magazines are also well used.
National newspapers such as the Sydney Morning Herald and the Daily Telegraph are widely read by potential buyers from outside your local area.
However, local publications such as the Mosman Daily, Wentworth Courier, Manly Daily and Hornsby Times are also used to capture the interest of local buyers.
The cost of advertising in traditional media publications will vary depending on your property’s target demographic, as will the effectiveness of using such publications.Other
Other advertising opportunities used regularly are:
Your chosen agent will be able to identify those which are most suitable for you and your situation.
Preparing your property for sale is one of the most crucial parts of the selling process.
A well-presented property is more appealing to buyers and a great first impression on all potential buyers is essential. Being prepared with professionally created photographs and a floor plan can help potential buyers greatly.
Visually market your property so potential buyers can view it in person.
Professionally taken photographs of both the internal and external areas of your property are a valuable marketing tool.
They allow potential buyers to:
We have found that having a professional take photographs costs around $300-$400 per property.
Having a professionally drawn up floor plan can be a useful tool for many sellers.
Think we’re exaggerating?
Online viewers of your property can use it to visualise the layout of your home and physical visitors can make notes on it during their visit to keep your property clear in their mind. The cost for a professionally created floor plan is around $200 per property.
Generally, there are 14 stages associated with purchasing and selling a property in NSW.
The first stage in the conveyancing process is to prepare The Contract for Sale of Land (2005 Edition).
So far so good.
This is prepared by the seller’s solicitor or conveyancer, ready for an offer to be made. A solicitor or conveyancer can charge anywhere from $500 up to $4,000 to prepare the contract, make amendments as required and to manage the transfer of title.
The second stage is where the potential buyer makes an offer to purchase the property.
The seller may or may not accept the original offer and negotiations over the price and terms of the sale may begin.
As a sign of good faith and to show genuine interest in the property, the purchaser may decide to pay an initial deposit called a holding deposit.
Pretty self-explanatory, right?
Generally non-refundable, the amount of the holding deposit is usually 0.25% of the purchase price or the amount defined by the seller or the seller’s agent.
The fourth stage is in regard to purchasing the property at an auction. Before the auction, both the seller and the purchaser have certain responsibilities to have carried out.
What do these responsibilities entail?
The seller should have had their solicitor or conveyancer ensure that that everything is in order by examining the sale contract. The purchaser should have all their finances arranged and any necessary property inspections completed.
In addition, for the purchaser to make a bid at the auction, they should have provided the selling agent with:
These details are then recorded within the Bidders Record and each registered bidder is provided a number.
During an auction, the seller would set a reserve price, which is the lowest price the seller is willing to accept. The purchaser does not usually know the reserve price. If during the auction bidding was to rise above the reserve price, the property could be sold.
However, if the highest bids were below the reserve price, the seller’s agent would then either try to negotiate an acceptable price with the interested parties or just leave the property on the market.
Selling your property at auction will cost you further fees, which is in addition to the agent’s commission rate for the purpose of marketing, advertising and other fees.
The fifth stage is concerned with exchanging contracts and paying a deposit.
Here’s all you have to do:
The seller and purchaser each sign one copy of the contract. The copies are then usually exchanged between the parties’ solicitor or conveyancer, except with regards to auction sales when the agent exchanges the contract. The exchange of contracts could occur either by mail or face to face. The deposit is usually around 10% of the purchase price less the initial holding deposit.
The sixth stage is where the purchasers may choose to insure the property before they take possession of it. Even though the seller is responsible for any damage until the completion of sale, purchasers are choosing to take out their own insurance from the time the contracts are exchanged to reduce their level of risk. Property insurance costs will vary depending on each property’s individual circumstances.
The seventh stage refers to a cooling off period where the purchaser could revoke the contract before the end of the cooling off period. In New South Wales, the cooling off period is five business days from exchange unless waived by the purchaser who has received a Section 66W Certificate from a solicitor or conveyancer.
It is not automatically applied.
It requires the consent of both the seller and purchaser for it to be applicable. The purchaser who cancels the contract of sale then forfeits 0.25% of the purchase price.
The eighth stage is with regards to the transfer of the property title.
Now, this is very important:
The purchaser’s solicitor or conveyancer prepares the transfer document and gets the purchaser to sign it. The purchaser also then pays for any stamp duty due at the time of the document registration. The purchaser’s solicitor or conveyancer then sees to it that the transfer is sent to the seller’s solicitor or conveyancer for the seller to sign.
The stamp duty varies depending on the property value.
In NSW, the time for completion of the sale is generally around six weeks.
However, this varies from state to state unless it is set by agreement between the seller and purchaser.
The time needed for completion of “off the plan” purchases can be quite lengthy, as building or/and construction needs to be completed and new titles need to be issued first.
The tenth stage requires the purchaser’s solicitor or conveyancer to send out a list of formal questions about the property called requisitions on title. This is sent to the seller’s solicitor or conveyancer who will reply to these questions.
These questions are asked to help determine various factors such as whether there have been general defects in the title, if there has been construction on the land or if the property is spoiled. The answers to questions can include information, which may not have been disclosed or even discovered during the inspection of the property.
But that’s not all:
If the questions are not replied to satisfactorily or if undisclosed information arises, then the purchaser can:
If the seller has a mortgage over the property, the mortgagee should be contacted to allow a payout figure to be obtained.
Keep in mind:
The mortgagee should also attend at the settlement to hand over a discharge of mortgage as well as the certificate of title or title deed.
During settlement time, adjustments are often made.
This is for things such as:
The purchaser will mostly be responsible for any arising adjustments.
Settlement is the day when solicitors, mortgagees and/or conveyancers meet and hand over the title documents in exchange for payment. The sale becomes settled or completed only when the purchaser pays the balance of the purchase price, plus or minus any adjustments to the seller.
We’re not through yet:
A final search of the title is also obtained on this day to make sure that the property is cleared from any obstacle or interest that may have been recorded for between the date of exchange and settlement.
Now we come to the final stage.
This is where the purchaser or purchaser’s mortgagee needs to register the transfer documents with the Land Titles Office where there will be a:
The Land Titles Offices then advises the relevant authorities that the property has a new owner.
It’s that easy.
And if that’s not enough, here are two useful NSW online resources which have been established by The NSW Office of Fair Trading and The Real Estate Institute of NSW.
Both of these websites have useful information on selling property within the state of New South Wales.
Firstly, the NSW Office of Fair Trading, has useful information on selling a property within NSW.
They explain in clear terms what happens during the sale process and what to consider when selecting an agent. Useful videos are also available for learning more about the buying and selling process and what steps you need to take when putting your property up for sale.
Secondly, the Real Estate Institute of NSW is a real estate agent advocacy organisation, established in 1910 to ensure professional standards and best practise in real estate.
The REINSW has a comprehensive range of resources available to the public through their website. They have a wide range of videos and fact sheets which cover areas such as:
And that’s all there is to it!
If you’d like an insider’s guide to selling your home, then you’re in for a treat.
How can you beat that?
It is jam packed with useful information including:
Here is your insiders guide for download
One of our friendly, Australian agent comparison consultants will get in touch to see if we can assist further.