Once the decision of selling the house has been finalised, it is an exciting transition period. However, it also pays off to be well-informed about the cost of selling a house that you’ll have to encounter. During the process, the total cost will be determined by the choice of the real estate agent, the location of the property and many other factors. This article will provide a guide by breaking down the different costs of selling a house.
An essential step in the process is ‘conveyancing’ which involves legally transferring the title of the property from the previous owner to another. It generally costs around $600 to $1300, depending on the property itself and for how long you’ve had ownership. Sellers tend to tackle this task by working with a professional conveyancer or solicitor to confirm the process has been undertaken accurately.
Real Estate Agent
The real estate agent plays a vital role and adds to the cost of selling a house. You will be heavily relying on them to place the home on the market and gather potential clients. Therefore, the cost of selling a house will strongly depend on the amount of commission charged by your agent. Although commission rates vary according to which state you belong to, the average rate in Australia is 2.07%. A low commission rate may be appealing but it is important to take into account their experience and availability. When it comes to choosing the ideal agent, it is in your best interest to interview a few candidates where you are able to compare their sales history, marketing strategy and commitment to their work.
To ensure a successful property sale, the agent is responsible for producing an efficient marketing campaign and strategy. If the campaign budget isn’t included within the commission payment, it will have to be added to the total costs of selling the house. The marketing campaign will vary as they involve a ‘for sale’ sign, photography, videography, copywriting and advertising. As a result, marketing costs can reach from $500 all the way to $6,000 according to the property value and location.
Repairs Or Renovations
It is a high priority for the property to look its best when entertaining buyers who will survey every corner of the home. You may have to invest in repairing the wall paintings, lighting and bathroom. There may be kitchen maintenance or electrical repairs that’ll require professional help that can be pricey. In addition, the exterior may need some tidying up along with other minor touch-ups. It would be advisable to set aside between $500 to $1,000 to be included in the overall cost of selling a house. On the other hand, avoid getting carried away with extensive renovation as customers enjoy the flexibility of a blank canvas and being able to add their personal touch to the home.
There may be a few owners who opt to have their place professionally staged before inspections. Companies usually charge a lump sum for a 4 to 6-week period and cost a few thousand dollars. If you’re hosting an auction, you’ll also have to budget around $6,000 for the auctioneer’s fees.
The moving costs can range from $400 to around $3,000 taking into account the distance travelled, the amount of furniture being moved, storage boxes and whether you’ll be hiring removalists. Meanwhile, closing a mortgage loan would cost about $1,000 according to which bank you’re partnered with.
How Can iBuildNew Help?
Building a new home and have a property that you need to sell during this process? iBuildNew recommends Agent Select. They are a property advisory service that organises FREE, no-obligation appraisals of your property, and provide you with a comparison report showing agent price estimates, commission and marketing fees and the best agents in your area. To discuss further options, give us a call on 1800 184 284 or book a call online!