Wouldn’t it be great if we could sell a property like we sell a piece of furniture? All you have to do with a piece of furniture is to place an advertisement, a person comes and looks at it, you negotiate a bit on the price, they give you the money and then take the piece of furniture.
Unfortunately, while the principles of selling a piece of furniture can be applied to selling a house, there are a few other cost factors involved. The selling price doesn’t necessarily reflect what you’ll get in your back pocket.
Here are some other costs to factor in when selling your house.
Preparing Your House For Sale
Faulty plumbing or electrical work, damp patches and other maintenance/repair issues may affect the negotiation process. A potential buyer may ask these issues are fixed before they proceed with the purchase, or offer a lower price. Before you put your house on the market, ask your agent what maintenance factors may affect the price and what repairs you should do before the property goes to market.
Advertising and Marketing
You obviously need to let people know your property is on the market, so there can be costs associated with this such as advertising in local media and property websites, and creating ‘for sale’ signage. Some agents back themselves for these costs, whilst others ask for this money up front.
Although you can sell your house yourself, many people prefer not to have the hassle and stress, and use an agent. When choosing an agent, it is important to consider all factors of the service and not make a decision based on the lowest commission – read our article on questions to ask when looking for an agent.
Agent fees are usually a percentage of the final sale price and marketing expenses. Some things you may have to pay for even if the property doesn’t sell. Before you sign on the dotted line, check absolutely everything and ask if there are any other agent costs you need to consider.
If you decide to sell your house at auction, there may be costs associated with this method of sale such as an auctioneer’s fee. Always ask your agent what costs are involved with selling at an auction and what is included in the agency fees.
The process of transferring ownership of the property from one person to another is known as conveyancing. A solicitor or a conveyancer usually carries this out and the process often involves detailed searches. Costs do vary so make sure you ask what the fee includes and whether it is a flat rate or an estimated cost.
The buyer, not the seller, generally pays for stamp duty. However, there may be other government charges to consider such as capital gains tax on the sale of an investment property.
Loan or Mortgage Costs
Make sure you read the small print of your loan or mortgage agreement. There may be some costs associated with paying off the loan or mortgage early or transferring it to another property.
Other Rates and Taxes
Outstanding council rates, strata fees and any other similar costs associated with the property will need to be agreed on as part of the settlement.
Moving house costs can add up – particularly if you are using a removal company. Check out our article on how to have a stress free move and what to consider when moving house.
If you are considering selling your house and would like to know more about what costs are involved, our knowledgeable and experienced team would love to help. With over 40 years of business in the area, we are one of Newcastle’s longest established real estate offices, so give us a call on 02 4954 8833 or pop into our Cardiff office for a chat.