What costs should I consider before selling my home?
When you make the decision to sell your home or investment property, at face value it could seem like it is as straightforward as contacting an agent, listing, selling, and then moving on to your next home.
There is usually a myriad of costs that should be considered when you embark on the sales process and it is beneficial to be aware of the upfront costs as well as those that may crop up throughout your sales campaign so that you can budget and be prepared.
Real Estate Agents Fees and Commission
The area and state that you are in will determine the rate of commission that you may be charged by an agent for their services. On average, commission rates vary from around 1.5% up to 3.5%, and some agents will offer out the charge on a tiered structure based on the final sale price.
Alternatively, some agents will charge a flat fee for the sale, rather than a commission rate and will negotiate this with you at your listing appointment.
There may also be a fee for an auctioneer should you and the agent choose to offer the property to the market at auction rather than other forms of sale.
Marketing Costs
The commission rate or flat fee charged out by the agent and the auctioneer will usually not include the costs to market the property for sale and as such an additional marketing fee will be charged.
Marketing fees will cover the associated costs with copywriting, photography, videography, signboards, and listing the property online to the agent website as well as the various property portals in the open real estate market and any associated promotional material.
Agents provide a range of marketing packages based on the type of home and the market that you will be looking to appeal to as well as the budget that both you and they would have in mind considering the overall scope of the property.
Property Styling
Professional styling of your property can assist with catching the eye of more potential buyers and appeal to a wider market. In addition to marketing, your agent may talk to you about companies who can work with you to declutter and style your home to present the space at its best and create the finishing touches to marketing the property.
Your agent may also talk to you about minor repairs and maintenance that they would recommend carrying out prior to sale to ensure that you are getting a premier price for your property.
Solicitor or Conveyancer Fees
A solicitor or conveyancer will handle the exchange and settlement of contracts on your behalf as well as all the required searches and legal documentation that is required in the process of transferring the property to a new homeowner.
Fees for solicitors and conveyancers will vary dependent on your area and the property requirements with some charging a flat fee or fees per service. It is best to talk with your solicitor or conveyancer about the options and costs.
Bank Fees
Depending on the bank that holds your mortgage and the type of loan over the property may determine if there are exit fees or other associated charges with discharging the mortgage on sale. It is beneficial to check with your bank prior to sale to establish any fees that you may be responsible for on the sale of the property.