If you’re looking to sell your Brisbane home, Calibre Real Estate offer an insight into the costs you need to know about
When selling your home, it is important you are aware of the potential expenses involved.
This allows you to work out your finances to make sure you come out on top.
There are some unavoidable costs that you will incur and others dependent upon condition of your home.
So that you can be fully prepared going into the sales process, here are some costs you need to be aware of:
Improvements
If you are going to put your house on the market, you need to make it as presentable as possible.
This may require carrying out a few improvements.
It is important to look out for the small details as well as the larger ones. After all, if you can notice it, a buyer will too.
However, you do not want to overspend unnecessarily.
Some of the most cost-effective improvements you can make to increase property value are:
- Painting
- Carpets / Flooring
- Landscaping
These improvements will give a much higher return, than the associated spend, when you come to sell.
More expensive renovations, such as kitchens and bathrooms, are only worth doing if they can offer a solid return on investment and are vital to a successful sale.
At Calibre, we can advise on the improvements you should undertake that make the most sense for your sale.
Real Estate Agent
A real estate agent can prove to be a very important part of the sale process.
Their duty is ultimately to achieve the best price for your property. Whilst aiming towards this, a great agent works with the seller to advise on the best strategy for their property sale.
For more, you can check out ‘Why You Need A Real Estate Agent For Your Sale’.
Marketing
When you put your property up for sale, you are responsible for the cost of marketing.
An agent will have on offer different marketing options, costs for which can vary significantly depending on the desired outcome.
What are some of the marketing services good agents offer?
- Online listing
- Video marketing
- Professional photos
- Staging
- Signage
- Flyers or brochures
- Newspaper advertising
- Listing in real estate magazines
- Distributing to a network of potential buyers on the agent’s database
The fact is, a property won’t sell if buyers don’t see it.
At Calibre, we know that every listing is unique and this is why we tailor our marketing to suit seller needs.
You can check out ‘Property Marketing For Maximum Results’ for more in-depth marketing advice.
Conveyancing
As the seller of the house, you will be responsible for paying the conveyancing fees and any other legal fees associated with preparing a contract for sale.
This is the process of transferring legal ownership of a property from one person to another, which is required in every real estate purchase.
Conveyancing can sometimes be quite complicated so you should familiarise yourself with the process to make sure you’re aware of all the possible costs.
Capital Gains Tax
Capital gains tax (CGT) is tax you are required to pay on the profit made on the sale of your property.
- There is no actual rate of CGT. Instead, it is calculated as the difference between the sale price, less expenses (solicitor fees, agent commission etc) and the original purchase price, plus associated costs of purchase (stamp duty, solicitor fees, building inspections etc).
- For assets held by individuals over 12 months, there is a 50% discount, so the gain is halved. The discounted gain is then included in the tax return as assessable income, along with their employment income and any other income. The normal marginal rates of tax then apply.
Additional potential costs
- Mortgage discharge fee – If you have a mortgage on the property you are selling, you will likely need to pay a fee to exit the agreement early. Fees vary between institution.
- Valuation report – you may wish to procure a valuation of the property to give to potential buyers, though it is not compulsory. In Queensland, the Australian Property Institute can provide names of registered valuers.
- Inspections – another optional is carrying out a Pre-Sale Building and Pest Inspection Report which can be conducted by a licensed professional. This can offer transparency to build trust with potential buyers. You can find out more information at https://www.qbcc.qld.gov.au
- Legal penalties – As the seller of a residential property, you are required by law to disclose certain information to the buyers before they enter into a contract. If you do not, there may be penalties for failure to comply with these requirements and the buyer may be able to terminate the contract and recover compensation from you. For example, there is an obligation to provide a pool safety certificate or notice of no pool safety certificate to a buyer before settlement. Or, if selling a unit or townhouse, you must advise the buyer whether the property has compliant smoke alarms and an approved electricity safety switch. For more information, head over to www.qls.com.au.
Talk to us about your sale
We understand the intricacies of selling a home and that is why we tailor our service to each individual depending on their needs.
Our expert knowledge of Brisbane’s North West paired with our continued success means that Calbire Real Estate is the only agency you need when selling your property.
Contact the team on 07 3367 3411.
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