There are a number of selling property costs you will likely incur when you sell your property. Some of these costs, such as marketing and repairs or renovations, will need to be paid prior to your property listing going live. Others are paid upon settlement, such as the seller’s agent fee.
Marketing
Making a sound investment in marketing when selling your property is one of the most important things you can do. How, where, and when you list your house for sale can have a huge impact on the interest generated in your home. When you engage an agent to buy and sell property, they’ll have a clear strategy on when to send your property live and have the first open home, to ensure they capture the biggest portion of your target demographic.
They’ll also have a suite of marketing tools to help increase visibility for your property. It’s worth noting that not every home will need an extended campaign, and depending on the market and type of sale, you may be able to save on advertising costs when selling a house if you’re working with a savvy agent. The typical tools used in property marketing campaigns include the following:
- Professional photography and copywriting
- Styling of the property using existing or hired furniture and decorations to maximise its appeal in photographs
- Online listings through real estate portals, agency websites, and social media
- Signboards – either personalised to the property or a simple ‘for sale’ sign with the agent’s contact details
- Brochures with select photography highlights and floorplans to be handed out at open homes
Agent commission
The agent commission is the fee paid to real estate agents for facilitating the sale of your property. It will be agreed upon after a property appraisal and prior to entering into a sales agreement and be reflected as a percentage figure. The commission is paid out at settlement.
Auction fee
An auction fee is a rate charged by an auctioneer to prepare and conduct the auction when you sell your property via this method of sale.
Search costs
Property searches are a mandatory part of the sales paperwork and entail the collection of information from various regulatory bodies to demonstrate the property is as advertised and any encumbrances are properly noted. A property search might include checks against the following:
- The property title, which shows the registered owners and discloses any encumbrances such as leases, caveats, and easements
- Land tax authority
- Property survey plan
- Body corporate records
Discharge of mortgage
Most properties are purchased by way of a home loan. In order for settlement to occur, you must discharge the mortgage attached to your home – i.e., pay it off so that the property is then able to be declared free of encumbrances and the title transferred to the new owners. Almost all banks charge a fee to cover the discharge of a mortgage when you sell your property. If you cannot locate it in your home loan paperwork, speak with your mortgage broker or call your bank for advice.
Sales rates and taxes
Depending on your type and stage of property ownership – e.g., owner-occupier or if you rent the property out – you may be required to pay taxes such as capital gains tax or GST upon settlement of your property sale.
Conveyancer or solicitor’s fees
You will need to engage the services of a conveyancer or solicitor to ensure all sales paperwork and processes have been properly prepared and completed. Many agencies partner with legal firms to make this process easier for vendors.
