From Sale to Sold – here’s what it costs to sell your home
Whether you’re upgrading, downsizing, or cashing out of an investment, selling your property does have a cost.
While some costs are obvious, there are others which you may not have thought of – and these will need to be factored in, so you know your budget if you are purchasing another property.
Here’s a breakdown of the main costs you should consider:
Real estate agent commission
While you can sell your home yourself to avoid commission fees, and there are plenty of DIY sales options, a quality agent shouldn’t cost you anything financially.
It’s not about what they charge—it’s about what they achieve for you. A skilled agent delivers results well above and beyond what a private seller or poor-quality agent could, more than covering their fee.
It’s not just about achieving a good price; a good agent will save you time, and in many cases, a lot of stress!
We guide you through the whole process, in-depth knowledge of the local market and can provide advice on pricing, marketing and negotiating the sale.
Marketing and advertising
There really is no avoiding these. Good marketing attracts serious buyers. Costs vary based on the method and extent of your campaign, and may include:
- Photography and videography
- Signboards and brochures
- Online listings (realestate.com.au, Domain)
- Social media campaigns
- Virtual tours or drone footage
We offer a variety of flexible marketing packages – plus we have a database of potential buyers we can market to, and in some cases our properties have sold before we’ve listed on the usual websites.
Property styling and staging
Presentation matters—well-presented homes often sell faster and for more.
While you do have to pay a property stylist for its services, in our experience, when they are used, properties often achieve between 5-10 per cent more than expected.
Repairs, maintenance & pre-sale improvements
Buyers do notice details, and some repairs and maintenance issues may give them an opportunity to knock you down on price. Even minor touch-ups can make a big difference.
If you are thinking of selling, the focus should really be on appearance, not structural overhauls.
Budget for minor repairs such as painting, updating some fixtures and sorting out the garden. We only recommend major upgrades (eg bathroom and kitchens) if we think they will significantly increase the value of the property, and the owner will not be over capitalising on a renovation.
Legal and conveyancing fees
In NSW, residential property cannot be offered for sale until a contract of sale has been prepared. This will need to be prepared by a licensed conveyancer or property lawyer. They will also need to manage settlement.
As well as the conveyancing costs, you may have to factor in additional disbursements such as applying for title searches and other certificates.
Lender discharge fees
If you have a home loan, there will probably be a discharge fee when you effectively pay the mortgage off once your property sells, and/or there may be break costs if you’re on a fixed-rate loan.
Check with your lender what fees you will incur if you pay off the mortgage early.
When you’re selling a property and buying a new one, it’s also worth asking your lender if you can move your home loan to the new property. This saves you all the hassles of refinancing, but there may be a fee associated with it.
Auction fees (if applicable)
If you decide to sell via auction, (a good agent will advise whether your property is suitable for this type of sale), there may be auctioneer’s fee and venue/online platform costs (eg if selling off-site or digital auctions).
Some agents cover these costs in their commission.
Moving Costs
After selling, you’ll need to budget for moving to your new location. Depending on your circumstances, these costs could include removalists, storage costs if there’s a gap between settlement and moving in elsewhere, and also cleaning (eg professional end-of-lease or pre-settlement cleaning.)
Optional costs
Some sellers like to get independent building and pest inspection reports done. As well as building buyer trust, they may reveal issues a seller can fix themselves, rather than be negotiated down on the price.
Additional costs for property investors
As well as the above costs, people who are looking at selling their investment property, need to consider the following additional costs, which are not applicable to residential sales.
Capital Gains Tax (CGT) – Investment Properties Only
If you’re selling an investment property, you may be liable for Capital Gains Tax on any profit ie the gain between your property’s purchase and sale price. There are some discounts if you’ve owned the property for 12 or more months.
You typically won’t pay CGT on your primary home.
We always recommend you speak to a financial specialist so you fully understand your tax obligations.
Ongoing costs while the property is on the market
If your investment property doesn’t have a tenant, you are still responsible for all the usual out goings such as council rates, water, strata fees (if applicable), insurance and of course, any mortgage obligations.
If it sits empty for a while, although it may be minimal, you will also be responsible for any gas or electricity bills.
If you would just like to know what your house could get in today’s market, use our free online appraisal tool.
If you’re thinking of selling your property, or even just want an obligation free appraisal, come and talk to us. We are one of Newcastle’s longest established real estate offices and our innovative team is constantly achieving great results for our clients.
Having been in the business for nearly 50 years, we know what the current trends are and can also give you some hints and tips which may make the property more attractive to potential buyers.
Drop into the Cardiff office or give us a call on 02 4954 8833. Or send us an email to: mail@apnewcastle.com.au – we’d love to help you.
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