What costs to expect when selling your home

What costs to expect when selling your home

Published Fri 3 May 2024 • 6 min read

If you're looking to make your next property move, it's wise to consider the costs and fees for selling a house. While some of these costs are under your control, other fees and taxes on selling a house are not.

So, let's look at what you can expect to pay when selling a home.

Agent fees

There are typically four options for agent fees when selling a house:

  • Fixed fee: an agreed set figure you pay the agent, no matter the sale price.
  • Tiered fee: an agent charges a different fee based on sale price brackets.
  • Commission: an agreed percentage of the sale price you pay the agent.
  • Bonuses: an agreed sum you'll pay based on the sale price reaching a certain figure.

Auction fees

There could be costs involved for your home to go under the hammer. While these fees may be included in an agent's commission, clarifying this upfront with your agent is smart. Just like with agents, more experienced auctioneers may charge a higher fee compared to inexperienced competitors. An auctioneer gets paid even if the property does not sell.

You can expect to pay a minimum of a few hundred dollars in fees to your auctioneer.

Repairs

Repairing and renovating your property before a sale can increase its value. Just remember to factor in costs including furniture hire before you dive into handiwork. You can also help your property shine by bringing in a property stylist to maximise its attraction.

Whether you spend a little or a lot, you want to make your property stand out in inspections, reinforcing potential buyers' positive first impressions.

Speaking of inspections...

Inspections

While they’re not mandatory, building and pest inspections are recommended before you exchange contracts. Even if there are existing reports available, it’s worth getting your own independent inspections done. The inspections prove the property is structurally sound and free from termites and other pests.

These inspections will cost a few hundred dollars each – much cheaper than the alternatives of later discovering problems potentially costing five figures or slowing down the sale process.

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Advertising

While some agents may include advertising costs in their rate, you may need to pay for them separately, whether or not your property sells.

Your agent should present a custom plan suited to your property, mixing different marketing channels including online, signage, flyers and video. The rule of thumb is to budget 0.5% – 1% of your property's asking price for advertising.

Conveyancing

Conveyancing transfers the property title from you to the new owner. There may be costs involved for professionals to handle this legal process. A conveyancer or solicitor can help you with the paperwork and any legal challenges you might meet.

Costs can range from a few hundred dollars for straightforward sales to a few thousand dollars for more complex sales.

Capital gains tax

Capital gains tax (CGT) is a tax on the profit from selling an asset such as an investment property. CGT exemptions are available, so you may not need to pay. For more information visit the ATO’s CGT property exemption tool or ask your accountant.

Mortgage discharge fees

You may need to pay a mortgage discharge or settlement fee if you’re closing your home loan. This fee can apply to both variable and fixed rate loans. You may also need to pay a break fee if settling a fixed rate home loan before the fixed term is complete.

These fees typically cost a few hundred dollars.

Strata and council rates

You’re still responsible for existing strata fees, land tax and council rates that apply until settlement is completed. The amounts vary based on location but budgeting at least $1,000 for them is clever.

Moving costs

Don't forget to factor in removalist costs and utilities like power, gas, water and internet.

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