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Home › Real Estate Agent Fees › Costs Of Selling A Property – By City/State + Calculator [2024 Update]
The costs of selling a property in Australia are substantial and cannot be determined by one figure alone, especially as there are so many variances which come into play. The charges also differ from state to state and location to location depending on whether the property is based in a major city or a less populated region.
So, what costs are involved in selling a house? This guide will take you through the many different primary costs of selling a house.
While some of the typical costs such as auctioneer’s fees, home improvements, repairs and home staging expenses may not be entirely necessary, it is worth having money set aside for these added extras in case you decide to go down that route. A small investment, particularly regarding repairs and professional styling, could reap huge rewards.
Spending money to prepare and market a property is only a worthwhile investment if you engage a top real estate agent to maximise your return on this investment.
Our free comparison service will show you exactly who the best real estate agents suited to sell your property are. Agents are very happy to discuss marketing and advertising cost structures, so don’t be shy.
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Whilst we are all aware of the agent’s commission there several other costs incurred when selling a property. Depending on your circumstances you may need to budget for:
The real estate commission fee is the most significant single cost you will have to pay when you sell your house. Once you begin to do your homework, you will see that real estate agent commissions vary depending on the state, location and size of your property.
Did you know that real estate fees can be negotiated due to the fact the industry is deregulated?
As agents can set their own rate, it allows you to shop around to find the best deal for your budget. Don’t forget that the lowest commissions do not necessarily work in your favour, however. While you may save on fees, you need to ensure that your chosen real estate agent has a good track record in terms of sales and sales prices. You want a real estate agent who will work hard on your behalf to get you a reasonable price for your home, regardless of the fee you will be paying them once the sale has completed.
Real estate agents will charge one of three ways:
As a guide, real estate agents’ fees could be anywhere between 1.5% and 4%. Tasmania has the highest commission rate while South Australia has the lowest. The real estate agent’s commission only becomes payable once the house is sold, except in the case of some agencies with alternative models.
For an estimate of real estate agent fees, have a look at our real estate agent fees calculator. It can give you an idea of what you could end up paying to your agent. If you need your suburb’s average agent commission percentage, have a look at our suburb fees guide too.
Total Agent Commission
As soon as the house is sold, the title of the house must be transferred from one owner to another. This is done with the assistance of a conveyancer or solicitor.
Like a real estate agent, conveyancing fees will vary depending on the type of services they offer. You can expect to pay anywhere from $700 to $1,300 for a qualified conveyance or solicitor.
Note that disbursements such as title searches, stamp duty and land tax may be charged over and above these fees. So make sure you understand the full extent of the service they are offering before you agree to their rates.
Marketing your house online is one of the most important things you can do to let potential buyers know that your property is for sale. Specific recommendations on the most appropriate way to market your house will be given by your real estate agent. Note, however, unless expressly agreed that the real estate agent will cover any costs, you will have to pay the fees for all the marketing. In some circumstances, you may find that some of the costs are included in the real estate commission, while others you will have to pay over and above the commission rate.
Online advertising is one of the costliest components of promoting the sale of your house, we split these out by capital city below.
Prices will vary dramatically depending on where your property is located and how prominently you want your advertisements to be displayed.
As advertising is an essential part of showcasing your home to willing buyers, you may want to consider the following opportunities:
Marketing is especially important if you intend to sell your home or property by auction. As it is only a one-day event, you will need to market your house extensively to widen your reach and attract the crowds.
A mortgage discharge fee is just one of the costs associated with selling a house and will be payable to your financial institution to close the mortgage. The exact cost will depend on the type of mortgage you have with your bank or building society (a fixed or variable rate) and how much you have left on the loan. It could be as little as $150 or as much as $1,000.
Capital gains tax is a necessity if the property you are selling is not your permanent place of residence. Any capital gains or losses need to be reported to the Australian Tax Office in your income tax return so that you can pay tax on any gains. The ATO provides helpful information on how you can work out your Capital Gains Tax. They advise choosing the method that will give you the smallest capital gain. Also, be aware of new regulations surrounding the ATO clearance certificate for capital gains tax and how they affect you.
Renovating or fixing up some minor damage to your property is a personal choice, and it will depend a lot on time and money. However, if there is a chance that you may recoup your costs in the sale price, it is definitely worth considering. While every house is different, is it worth keeping some money in the kitty for minor repairs.
Ask yourself these questions.
Have a look and see what other properties are for sale in the area, and compare features.
There are pros and cons of using an auctioneer. If you have established it is the right choice for you, then you will undoubtedly have to take their fees into account. While some auctioneers may be free of charge, payable via your real estate commission, you will generally find there is some fee involved.
The cost for using an auctioneer will fluctuate between $200 and $1,000.
Home staging may or may not be necessary. If you do intend to hire a company to assist you in upgrading your furnishings, you need to consider it as an investment rather than an expense. The better your house looks, the more appealing it will be to potential buyers. Consultations are provided by a professional home staging company at which point you can discuss prices and ideas. Furniture is leased for a period of approximately 4 to 8 weeks and then returned once the house has sold. Insurance, furniture delivery and pick up are included in the rate.
Home staging costs can quickly add up depending on the quality of the furniture used. You can expect to pay anywhere between $2,000 and $8,000 (and sometimes more!)
Don’t forget to take into account your moving costs if the property you are selling is your primary residence. You will need to consider the charges for the transportation of your belongings once your house is sold if you are not planning to do it all yourself. Prices vary between $500 and $3,000 depending on the distance.
By now you should have a good idea of what you should expect when you’re looking to sell your property. To get a final figure, just use our costs of selling calculator below, which will let you tally up a total estimated cost of selling and see where you could save money.
There are some costs, such as moving expenses and conveyancing fees, which are pretty standard across Australia. Then there are the variable expenses like real estate commissions and marketing costs which depend on the location of the property.
Scroll down to locate your particular city, or state, to learn more about how much it will cost you to sell your house.
The above prices are a general guide to inform you how much it is going to cost you to sell a home in your city or state. This information is particularly helpful if you are a first-time buyer, so you have a better idea of your budget. Exactly how much it will cost to sell your house will be determined by chosen method of sale, agent and location.
Remember that it might not be in your best interests to opt for budget marketing plans or commission fees. Selling your house can be one of those times where you get what you pay for – agents might not work as hard for you if you’re paying them a lower commission rate for example. At Which Real Estate Agent, we can help you find agent commissions and top-performing agents – we do all the research for you.
The common costs in selling a property are; real estate agent fees and commissions, conveyancer or solicitor fees, marketing costs, mortgage discharge fees, capital gains tax, auctioneer costs and moving costs.
Commission rates for real estate agents vary state-to-state but generally agents will be paid 1-4% of the selling price as per their commission rate.
Real estate agencies will generally print brochures & signage as part of the marketing costs. Marketing costs will normally include digital marketing on sites like realestate.com or domain as well.
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Costs To Sell A Property in Sydney [2024 Update + Calculator]
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