How much does it cost to sell a house in Australia?
Many people are not able to correctly estimate how much it costs to sell a home. The flow on effect of that is that they don’t properly set aside a budget which can lead to added anxiety and stress, something your definitely don’t want or need during a home sale.
Before you put your home on the market or settle on an agent to represent you, it is essential that you create a plan to sell.
Ideally, if you can estimate how much it will cost to sell your home you can put that money away in the planning phase. Use a separate account so that you can cover everything you need comfortably.
Having a budget will also help you have straightforward conversations with your real estate agent about what you want and don’t want in your marketing and expenses.
Here are some usual expenses for you to use as a guide.
• Agency commissions usually range between 1.8% and 2.5% in the Sydney area and 2.5% to 3.5% for regional NSW.
• Standard marketing packages can be as low as $600 or as high as $2,000 for a 45-day campaign.
• Conveyancing in NSW typically ranges between $700 and $1300.
• Early exit and mortgage discharge fees in NSW usually range between $150 and $1,500.
• Staging and furnishing your home can range from $2000 and $8000.
• Moving costs will depend on how much you are willing to do yourself and how many bedrooms you have. A studio home apartment move completed by professionals can be $350 ranging up to $1,500 for a three-bedroom home.
When it comes to choosing an agent it should not be based on commission price and home estimation alone. Take the time to find the right agent for your property and, during the interview, discuss prices and fees.
When it comes to agency fees you typically have a choice to pay a flat fee or pay on commission.
A flat fee is just that, a fixed price no matter how much your final sale price is. In this case you might be required to pay a fee to the agent even if the house doesn’t sell.
On commission means the agent takes an agreed percentage of the final cost.
It is also possible your agent might suggest a bonus to be paid to them if they are able to get a buyer in higher than the reserve price.
If you have selected the right agent these choices will be given to you in detail so you can make a confident decision.
What your agent provides within their prices may vary, so make sure you know what your package covers and doesn’t and where the extra expenses might be.
Some things to ask and consider include
• Photo shoots
• Floor plans
• Agent managed opens
You are usually requested to pay an amount upfront to cover the essentials (say $2,000) with the balance due on completion of the sale.
Fix and polish
How much you spend on repairing your home will depend on the home’s current condition, age and what you expect your sale offer to be.
A little bit of home handiwork can make a staggering difference to the final price of your home. Presentation is a big factor when it comes to winning over your buyers. While you don’t have to repair everything from top to bottom, looking after the biggest and most obvious parts of your home will help create a great first impression that lasts through to purchase. Before your home goes on the market make a list of the repairs that need looking after in order of priority. Your real estate agent can help pinpoint problem areas. Get quotes on either materials or third party assistance so you know how much your repairs will be.
Staging is not everyone’s cup of tea, however, the proven difference it can make to your final price and speed of sale is incredible.
If you need a lot of repair work on your home you may prefer to allocate funds there, if your home is in good nick though you are able to spend a little more on staging which might include something as simple as getting the carpets steam cleaned and hiring someone to weed the garden, to more elaborate work such as hiring a stager to bring in new furniture and re-arrange one or two rooms for maximum style and impact.
Staging is most impactful in the lounge (or main living room) and you may choose to add additional staging to either the kitchen or bathroom.
Price alone is not the best way to choose a conveyancer. You want someone with experience and confidence, especially with PEXA online systems. Online applications are now mandatory in NSW but the technology has been available to conveyancers for a few years. Like your real estate agent it’s important to spend time asking questions and getting to know potential conveyancer so that you choose the right legal representative for your property.
Ideally, you want someone on board with your home sale well before the agreement is signed to ensure all your needs and requirements are included in the agreement and there are no legal issues that may cause headaches later on.
Be smart about selling your home from the get go. For more information about how to sell with confidence download the detailed E-book and put yourself in the driver’s seat of your sale.