When selling a house in Australia, you need to find out how much it will cost you. There are numerous expenses that first-time sellers may overlook when deciding to sell. Here are some costs involved in selling a house.
How Much Does It Cost To Sell A House in Australia in 2024
In 2024, selling a house in Australia typically costs around 3-5% of the sale price. This includes agent commissions, marketing fees, legal costs, and other miscellaneous expenses. Fees vary depending on the property’s value and the chosen service providers.
Speak To Our Real Estate Agents
Real Estate Agent Fees
Selling your house through a real estate agent attracts costs. Real estate agents are paid a commission for the work they do to ensure that your house gets off the market.
Real estate agent fees vary with your location and negotiation skills. Around Australia, real estate commissions range between 1.5% and 2.6% of the value of your property.
Depending on your negotiation skills, there are three different types of commissions you will pay your agent. Besides the mentioned percentage fees, a house seller can negotiate to pay a flat fee commission where the seller and agent agree on a fixed amount regardless of how much the house costs.
Additionally, a seller and an agent can agree on a bonus if the house fetches more than the asking price.
Conveyancing Costs
Conveyancing is the legal process of transferring property ownership from one party to another. It involves hiring a lawyer. The good thing about conveyancing fees is that the maximum amount a house seller can pay is set in law.
Marketing Costs
Another cost that a house seller may incur is marketing costs. Marketing helps create awareness that the house is in the market and attracts potential buyers.
Marketing costs depend on the advertising methods used which vary in cost. Furthermore, the longer the house remains unsold, the higher the marketing costs.
Real estate market data in Australia shows that marketing expenses reach up to 2% of the value of the house.
Styling Costs
In addition to marketing, sellers need to style their properties to make them more attractive to potential buyers.
Professional property styling involves presenting the house to buyers as a place they could live in their preferred style. It achieves this by setting up furniture in key rooms if the house is empty, decluttering, doing proper lawn maintenance, and sprucing up various areas of the house to make it more appealing.
Depending on the size of the house and the level of beautification required, styling costs may reach up to $10,000 or more.
Finance Discharging Fees
When selling a house that one has a mortgage on, the bank or lender will charge a discharge
fee. Depending on your financier, discharge fees range between $200 and $1500.
Renovation
When selling a previously lived-in home, it is necessary to fix up the wear and tear that has taken place during the period of occupation. How much a seller spends on renovation depends on the age of the house and its current shape. Sellers may have to put in new fixtures to make the house more up-to-date, easy to move in and to enable it to fetch the set asking price.
Sellers must consider the range of expenses involved in selling a house to set the correct asking price.