Every owner should know the fees for selling a house. Understanding what the whole process could cost not only helps with budgeting, it can make it easier to make decisions on every element of your marketing and sales approach. After all, the last thing you want is to be left short and to have to compromise on your campaign.
But, while most fees are obvious, some can be a bit of a surprise and others are often simply overlooked. They still need to be paid though and can have a big impact on the profits from your sale. So, to help make sure you know what to expect, here’s our detailed overview of the fees for selling a house.
What are the main fees for selling a house?
When selling a house, the fees every owner should plan for include:
- Agency fees: These are usually the largest fees for selling a house and may be commission based (the agent gets a certain percentage of the sale price, usually 1.5% – 2.5%) or a flat fee (the agency receives a set amount, regardless of the sale price). If you choose to go to auction, you will also need to pay for the auctioneer (usually $500 – $1,000) and may want to include a bonus in the contract (e.g. 10% of any amount about the agreed reserve).
- Marketing: Most agencies offer a range of marketing plans that vary from basic (photography and listing on the main real estate sites) to comprehensive (video tours, social media campaign, etc.). You need to determine how much you’re willing to invest – the best package for you will depend on the property and the type of buyer’s you’re targeting. You should expect to pay anywhere from $2,000 to $10,000 or as a rough guide – less than 1% of the value of the property.
- Conveyancing: All of the legal work needs to be done by a qualified and licensed (and preferably local) conveyancer or solicitor. This will cost $1,200 – $2,500.
- Mortgage discharge fees: If you have a mortgage on the property you are selling, there will be a cost associated with ending that contract. Each lender has their own process and fees, but it usually takes 14 – 21 days and costs $150 – $1,500. Costs can be higher is you have a fixed interest rate loan.
There are a number of other fees for selling a house you should also account for, including:
- Maintenance: For most homeowners, there are a many little jobs that need to be done to get the property ready for inspections – like painting or touch ups to walls. While you may be able to do most of the work yourself, you should budget $200 per room or higher if you need to engage a painter.
- Staging or Styling: It’s all about selling the fantasy and professional advice on how to present your home to maximise its appeal can be a big help. How much this costs will depend on whether you just need to declutter and get some new soft furnishings ($300 – $500) or completely re-furnish the property (up to $3,000+).
- Storage: Once you’ve decluttered, you’ll probably have more than a few boxes and extra pieces of furniture to deal with. Unless you’ve got somewhere out of the way to put these (a shed, a cellar, space in your roof), you will probably need to organise off-site storage ($100 – $150 a month depending on how much space you need).
- Cleaning: Once you’ve got your house looking its best, you’ll need to keep it that way – but that can be difficult when you’re still living in it. Arranging a cleaner can take the stress out of preparing for inspections and will cost about $30 per hour.
- Packing and moving: This may seem obvious but is probably the most overlooked fee for selling a house. From packing materials to the actual transportation, moving can be quite an expensive process and you should make sure you have at least $2,000 set aside to cover these costs.
- Building Inspection: Most serious buyers will want to see a building inspection report before they put in an offer. Acknowledging this, you can try to speed up the process by organising an inspection yourself (usually about $500) and make the report available to potential buyers. However, it should be noted this is very much optional and some buyers will prefer to seek their own independent advice anyway.
So… how much does it cost to sell your house?
As shown by the above lists, when selling a house, fees can vary greatly depending on your property, the sale price, and how you’d prefer to approach the sale. As such, there’s no set figure for how much selling a house will cost.
As such, it’s important for you to think about all of the services you require and do your homework on how much they will cost. Knowing the total of the fees for selling your house will help with budgeting and planning the process.
It’s also worth noting that, while price should be a consideration when choosing an agent (and any other services to do with your sale), it shouldn’t be the sole factor you base your decision on. In real estate, you usually get what you pay for, so choosing a low-cost provider often means compromising on experience and the quality of service (particularly regarding marketing).
Want more information?
If you have any further questions about the fees for selling a house, give Local Agency Co. a call. We help our clients maximise their sale price and achieve great results by providing professional advice, setting a tailored strategy and working hard. We are educated, trusted, transparent, responsive, and innovative. Contact us on 1300 258 888 or via email@example.com.