Cost of Selling Real Estate
If you’re pondering the prospect of selling your property, one of the first questions many people ask is what will it cost?
Selling a house is undoubtedly a major life event. But, while the idea of new beginnings should leave you excited for your next chapter, moving can sometimes be a challenging and emotional process.
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After all, selling a property is about realising a maximum return for a substantial investment, so it pays to know upfront who will receive a slice of that pie and how big that pie will be.
The following is a general guide to the costs involved in selling a property.
​Maintenance / Improvement costs
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​Before selling a property, it is very important to make sure that your house is in the
best possible condition. This often means performing maintenance tasks both inside and outside of the home.
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Taking the time to ensure that maintenance issues have been attended to does cost money. However, this is an important step in the process of selling a house and therefore achieving the best possible sale price.
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A house that appears run-down may struggle to sell, particularly in a competitive market. To negate this, we have prepared 101 tips for presenting your home to it’s potential and maximise your sale price. Your Change agent will provide you a copy of this as part of your appraisal.
​Legal costs
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​There are legal costs associated with both buying and selling. Namely, engaging a conveyancer or solicitor to help guide and advise you through the process and legally transfer ownership of the home from you to your buyer. The cost of this can vary from solicitor to solicitor and it is recommended to involve your solicitor early in the process. It’s also worth noting that if you are refinancing, a mortgage broker will often be able to negotiate a cash contribution from your bank which may cover your legal fees so be sure to ask!
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If you do not currently have a solicitor, your Change agent will give you a recommendation to one of our preferred partners.
​Agents commission / success fee
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​Often the most asked question of an agent is “How much is your commission”? Yet it’s also the most misunderstood cost of the process.
Most agencies charge a similar cost, yet agents can vary considerably in their skill and experience level. Yet these are the only two areas that provide genuine value to your selling experience and can mean tens of thousands of dollars difference to your sale price.
This is why every Change agent has completed at least 50 sales in their career so you are not dealing with a “newbie” who may derail your sales process with inexperience. We also offer flexible fees so you can agree on a success fee with your agent that is fair and reasonable for your own situation.
Remember, you only pay a success fee when we achieve successful unconditional sale at a price that allows you to make your move after ALL costs have been taken care of. So our role is actually to have the buyer pay a price for your property that pays our fee!
​​Marketing costs
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A great marketing campaign is essential to a stress-free property transaction.
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​In most real estate agencies, marketing costs are separate from an agents’ commission. This is because we do not charge a markup on advertising services that are provided such as website portals, photography and videography, print media, social media etc. We only earn a living from achieving you a successful sale result and these marketing costs are the real and hard wholesale costs that it takes to expose your property to the market. Fortunately however, we do get better deals than “joe public” with our brand partners.
At Change Real Estate, we recognise that the economic environment is difficult and often it can be hard to come up with a few thousand dollars to start the process. We also understand the critical importance of a comprehensive marketing campaign in a highly competitive market to have your home stand out from the crowd.
With this in mind, we are able to offer you the benefit of no upfront marketing cost through our preferred partner Property Credit. Your Change agent will make a recommendation of a marketing plan specific to your property, without the hassle of having to pay for it up front. Instead, it is able to be paid upon the sale of your property sale, just like the success fee.
​​Styling your property
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Before putting your house on the market, your Change agent may recommend property styling. This could be because the house is brand new, an empty rental, an estate sale that has older furniture, or it just needs added appeal to have it appeal to a better range of potential buyers.
Styling and presentation can add thousands of dollars to your sale price and your Change agent will make a recommendation if needed to one of our preferred property partners.
​​Moving fees
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Moving costs can easily be forgotten. However, it is worth mentioning that they will almost always be incurred. We recommend obtaining a moving quote from one of our preferred property partners upon signing a sale and purchase agreement for your sale.
​​Brightline Tax
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For those selling a property that is not their main dwelling - eg a rental investment, holiday house, vacant land or spec build, depending on when you purchased the property, the Brightline Test rules may apply.
This means you may be liable to pay Income tax on any profit you made. Your Change agent will be able to assess your situation and give you the right guidance as to your specific circumstance. More information can be found on the IRD website.
​​Strata fees
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​If your property is a Strata Title, there may be selling costs associated with your sale process, with Pre Contract and Pre Settlement reports needing to be obtained from the Body Corporate. This is a requirement of the Unit Titles Act and the general conditions of sale in the sale and purchase agreement. Your Change agent will guide you through this process. ​
​​Lender fees
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​If the property you intend to sell has a mortgage, there may be lender fees involved, particularly if mortgage rates have changed since you bought it. These fees can include discharging the mortgage or early exit fees.
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Each lender’s fees vary, so it pays to speak with them about the charges you may incur.
Whether buying or selling, we always recommend dealing with a good mortgage broker to ensure you get the best deal and your Change agent can provide a recommendation to one of our preferred property partners.
​​Completing your house sale with Change
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​Selling a home marks a major life transition. With so many emotions and feelings of stress tied into the moving process, look for a real estate agency that will help make this transition as seamless as possible.
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While the moving process and the associated costs may seem overwhelming, Change Real Estate can help break down the many components of selling a home, helping you take the stress out of moving.
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Whether you are preparing to sell or looking for more information, our Change team is waiting to assist you. We offer you experience alongside excellent market knowledge that helps make the selling process as smooth as possible.
Contact us today for a free property appraisal.