What are the Costs Involved in Selling Your House?
28 February, 2022
Selling your house is a large task, and one that can leave many homeowners feeling overwhelmed and emotional. This is, in part, due to the myriad of costs to vendors; from conveyancing costs to agent’s fees and marketing expenses, there’s a lot to consider!
To make your journey less stressful and to help you feel more prepared, understanding these costs before beginning the process is essential. This way, you are not blind sighted by any extra or unexpected expenses.
Before selling your house, it’s important to make any essential repairs. Not only will this boost the overall value of your home, it also means fewer contingencies with buyers. A house that is run-down or in need of repair will struggle to sell or will deter buyers. A real estate agent will advise on you on what maintenance works are crucial and what can be left to the new owners.
When it comes to choosing an agent, a vendor’s decision should never be based purely on the costs placed in front of them. Read our blog on How to Choose the Right Real Estate Agent for You for more guidance.
A real estate agent is hired to provide their industry expertise and local connections to help you sell your home. Depending on the real estate agent that you engage, there are different commission methods. There’s a flat fee, where the agent and the vendor agree on a fixed fee for the sale of the property regardless of the final sale price of the house. Then there is a percentage of sale fee, where the agent gets a certain percentage of the final sale price of the house. This can range from 1% to 3%, depending on several factors, such as the property value and competition among agents. All fees should be discussed with the agent before signing.
Conveyancing is the process of transferring legal ownership of a property from one person to another. This is performed by licenced conveyancers and solicitors and is required in every real estate purchase. Fees will vary, so we recommend vendors use a local solicitor as they have local knowledge and can recognise any special conditions that may be an issue.
The vendor covers the cost of marketing their property. An agent will recommend a marketing campaign, which might include both digital and print marketing, such as a board out the front of the house, listing on realestate.com.au, professional photography for the listing, the creation of a floor plan, copywriting, and press advertising.
Each listing is unique and, depending on budget, campaigns are adjusted. With this in mind, Universal Property offer tailored marketing packages for your specific property, location and target buyers.
Capital Gains Tax
Capital gains tax may be an added expense for those selling a rental property, holiday house or vacant land. Put simply, capital gains tax is the levy you pay on the capital gain made from the sale of an asset, where the capital gain is the difference between what you paid for the asset and what you sold it for. It’s important to discuss this with an accountant for more information.
Styling your property
To maximise the sale price of your home, many agents will recommend professional styling. You property needs to make a good first impression on buyers. When they walk into your home, they’re asking themselves ‘can I live here?’. Styling is about making your property as appealing as possible to show off the space and create a welcoming atmosphere.
Check out our Styling Your Home to Sell eBook for helpful tips and information on styling your property.
If you have a mortgage on the current home you’re selling, you’ll need to pay your lender a discharge or early exit fee. Each lender charges their customers a different amount for this service and should have their own mortgage discharge forms to fill in.
Moving costs will be incurred as you move furniture and boxes from the old house and into your new property. There are several options to do this, from hiring removalist or hiring a moving truck and doing this yourself. Find the best option that works for you.
Completing your House Sale with Universal Property
Whether you are preparing to sell or looking for more information, Universal Property is here to assist you in your sales journey. We offer you a superior and personalised service that helps make the selling process as smooth as possible.
Contact Jesse on +61 431 761 644 or email us at email@example.com
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