Three main costs you’ll encounter when you’re selling your house will be real estate commission fees, marketing and conveyancing. But there are other costs to look out for too. The cost of selling a house will depend on your choice of real estate agent, how far you’re moving and which state you’re in. You can calculate how much it’ll cost you to sell your property using our Selling Costs Calculator.
Here are the main costs you’ll need to budget for:
Real estate agent commission
The cost of selling will depend on the amount of commission charged by your real estate agent. The national average commission rate in Australia sits at 2.07 per cent, but commission rates vary from state to state. Tasmania has the highest average commission rate at 3 per cent, and South Australia has the lowest average at 2 per cent. You can compare real estate fees and commission rates here, as well as performance reviews and more. Lower commission rates may be an attractive option, but be sure to consider factors such as experience and sales history, marketing strategy as well as their availability and commitment to achieving the best outcome. It’s a good idea to interview to two or three agents, so you can compare exactly what each agent will do for you.
Your real estate agent will run a marketing campaign for your property sale. A real estate agent with a good marketing strategy will generally include photography and videography, a ‘for sale’ board, copywriting and listing your property both online in the paper. If costs aren’t included within the commission structure, marketing campaign costs vary as they’re unique, but can cost you from $500 upwards. You’re probably looking at somewhere between $3,000 and $6,000, depending on your location and property value.
Conveyancing is the process of transferring the legal title of the property from one property owner to another. Costs generally fall somewhere between $600 and $1300. Most sellers will choose to work with either a professional conveyancer or solicitor to help complete the conveyancing process.
|NSW||2.04%||$2,000 - $5,000||$600 - $1,300||$200 - 1,000|
|VIC||2.05%||$2,000 - $5,000||$600 - $1,300||$200 - 1,000|
|WA||2.44%||$1,000 - $3,000||$600 - $1,300||$200 - 1,000|
|QLD||2.59%||$1,000 - $3,000||$600 - $1,300||$200 - 1,000|
|SA||2.03%||$1,000 - $3,000||$600 - $1,300||$200 - 1,000|
|TAS||2.89%||$1,000 - $3,000||$600 - $1,300||$200 - 1,000|
|NT||2.58%||$1,000 - $3,000||$600 - $1,300||$200 - 1,000|
|ACT||2.20%||$1,000 - $3,000||$600 - $1,300||$200 - 1,000|
Other costs to consider:
Property repairs and renovations
Spending money on repairs is essential. Buyers will suss out every nook and cranny, so be sure to fix up every room before inspection time. Common repairs include painting, lighting repairs, kitchen repairs and maintenance, bathroom repairs, electrical repairs as well as giving the exterior a touch up. It’s a good idea to have $500 – $1000 budgeted for repairs. Minor touch ups to rooms such as the bathroom and kitchen will add value, but be careful not to overcapitalise with extensive renovations. Leaving the buyer with a blank canvas gives them flexibility in terms of styling their own house, which may increase their interest.
If you’re holding an auction, you’ll often have to pay an auctioneer’s fee which can cost up to $6,000.
If you have a mortgage, you can expect to close your mortgage loan for around $1000, but this cost can vary depending on your bank. This is essentially a fee for the paperwork involved.
Paying for a professional to stage your home isn’t always essential, especially if you enjoy styling your home yourself. But if you’re running short on time, getting someone in to style your home can make a significant difference ahead of your inspections. A good real estate agent will be up-to-date on trends buyers are looking for. Companies will generally charge a lump sum for a 4-6 week period, and cost into the thousands. Home staging is generally more expensive in metropolitan areas.
Moving costs can fall anywhere between $400 – $3,000. The cost of moving generally depends on the following:
- The distance you’re travelling
- The amount of furniture you’re moving
- Whether you’ll hire full-service removalist or pack the truck yourself
You’ll also need to purchase storage boxes if you haven’t got them already.
Capital gains tax
If you’re selling your holiday house or investment property, you may be subject to capital gains tax (CGT). You don’t pay capital gains tax on your home if it’s your current place of residence. How to calculate your capital gains tax: 1. Calculate your cost base Purchase price + all costs – first home owners grant & claimed depreciation 2. Subtract your cost base from sale price Property sale price – cost base = capital gains tax Exemptions include temporary absence, if the property was purchased prior to 1985 or if you used your super fund to purchase it. You can also apply for partial exemptions in some circumstances.
The cost of selling a house
How much does it cost to sell a house? You can start the process by comparing real estate agents at LocalAgentFinder. This includes a view of fees and commission, marketing strategy, performance reviews and more.
When you are moving to a new house, it can be an expensive process – so many costs to think about. Unfortunately, not all costs can be avoided, but with LocalAgentFinder you can see, at a glance, which real estate agents offer the best value for money in their services. Then, at least you can understand real estate fees for selling a house and what to expect in terms of cost.
This is a (usually negotiable) part of estate agent selling fees, and it represents the money that the real estate agents make from the sale of your property.
Real estate fees for selling a house are usually inclusive of things like admin and marketing costs – be sure to get a breakdown, in writing, for the real estate agents you choose so that you know what to expect.
The cost of a property search can be part of the conveyancing fees.
Discharge Of Mortgage
This might apply to you once you have paid your mortgage for the property you are selling. Discharge fees are usually between $150-$400.
Rates & Taxes
Stamp Duty, Rates and Land Tax are typical charges made when buying and selling property – and if you are selling a ‘second home’ you might need to pay Capital Gains Tax, too.
The conveyancer is a qualified individual who can provide advice and prepare legal documentation regarding the sale or purchase of a house. They can help to represent you as the seller, and make sure that all is in order for settlement to happen.
Even if you are only moving within the same suburb, it is likely that you will have moving costs to consider. Trucks, people to help carry, utilities connection fees – it can all add up.
The below costs are not necessarily going to apply to all house sales, but it is worth bearing them in mind when you are looking at the cost of selling a house in NSW, Victoria or anywhere else in Australia.
Hiring a professional cleaner is a good way to make sure that your house is in tip-top shape for potential buyers – and can help you achieve a quick sale.
Repairs & Renovation
Getting repairs completed and even renovating tired bathrooms and kitchens might present an initial cost, but in many cases can mean a greatly increased final sale price.
Kerb appeal is something that can make or break a sale – making sure your home looks the part from the outside is so important!
Staging For Sale
Making your property an attractive ‘blank slate’ is something that a professional stager can do – but it does come at a cost.
Different Costs, Different Areas
As the prices of houses themselves vary across Australia, costs of selling can too.
The cost of selling a house in NSW, includes:
- Average Commission: 2%
- Marketing Costs: $600-$10,000
- Auctioneer Costs: $200-$1000
- Conveyancer Costs: $500 - $2200
Of course, when you use LocalAgentFinder and connect with real estate agents in NSW, you can find out the fees and commissions of your chosen shortlist, helping you to make an informed decision
Whether you are selling your home or selling land in Victoria, costs are similar. These can include:
- Average Commission: 2%
- Marketing Costs: $500-$8,000
- Auctioneer Costs: $200-$1000
- Conveyancer Costs: $500- $2200
Make sure that when you are selling your home, you have open and honest conversations with all contractors, real estate agents and conveyancers to ensure that you can keep on top of the real estate agent selling fees during the process.