Whatever your reasons and motivations for selling your house, it can be an emotional and challenging time. One of the ways to reduce stress and headaches is to be fully informed about what to expect, and how much you need to budget for the process itself. The cost of selling a house adds up to more than just the amount you spend on your new property, but if you start out with a good idea of the fees associated with selling a house, you can plan and budget appropriately.
One of the most important roles of your real estate agent is to advertise and market your property to generate maximum interest. A range of digital marketing channels and print media will be combined to form a strategic marketing campaign. Most agencies will charge marketing costs on top of the agent’s commission in order to cover these various services.
• Digital brochures
• Real estate portal listings
• Social media
• Professional photography
• Drone footage
• Property brochures
• Newspaper and magazine advertisements
• Professional copywriting
Your agent will use their experience and local market insights to develop a tailored marketing campaign for your property, in your area. This is a specialist service that can make a huge difference to the speed and efficiency of your sale, and to the all-important sale price itself. For this reason, advertising and marketing can add anything from several hundred to several thousand dollars to the cost of selling a house. With the right agent, this investment will pay off.
The agent’s commission forms a key portion of the cost of selling a house. This is because you are paying for specialist expertise, industry experience, local market knowledge, and access to valuable contacts, techniques and technologies that will help you to sell your house quickly, and at the best price. Your agent will also be your advisor and advocate throughout the process, answering your questions, providing support, and negotiating on your behalf.
There is no standard commission rate in Queensland so you will find that the rates and methods vary between agencies. An agent may charge a flat fee, a percentage of the sale price, or a tiered commission, so it’s important that you discuss this in advance and agree on a rate and structure before signing a contract.
When you find the right agent and are ready to get started, you must both complete an Appointment To Act form. This is a service agreement that sets out the rights and obligations of both parties – you and your agent. Their commission, fees and expenses should be clearly laid out in this form, and you should make sure that you understand how much you are likely to pay, and when. Once you have discussed and agreed on terms, you will both need to sign the agreement. The commission is usually payable on the settlement of the sale.
The buyer’s financier may want to get their own valuation in order to secure their finance approval for the purchase. This is commonly a part of a finance clause on the contract of sale. The buyer’s financier will want to get their own valuation in order to secure their finance approval for the purchase.
A detailed inspection compares your home with other similar properties and highlights any issues with the construction, workmanship and condition of the property. The report will identify any areas of deterioration or poor maintenance, as well as potential hazards. It pays to commission an in-depth report before you sell because it will either strengthen your negotiating position or prepare you to adjust your expectations.
The cost of selling a house will inevitably include some associated legal fees. These relate to your conveyancer or solicitor for their service in legally transferring the ownership of the property to the buyer. After you accept an offer from a buyer, your solicitor or conveyancer will manage the contracts and legal processes that follow.
It is not a legal requirement to work with a conveyancer or solicitor, but it is the best way of ensuring that all of the legal boxes are ticked and nothing falls through the cracks. The process of selling a property is complex and you can’t afford to make mistakes. A licensed conveyancer or solicitor will charge their own rates for this work, and these can vary from agency to agency. Take some time to research and compare rates and services before choosing someone to take care of this for you.
When such large sums of money are involved, it’s a good idea to find a financial advisor who specialises in home loan finance. They can help you get your finances in order for your sale, and a potential new purchase, and support you to make smart decisions.
Preparing your property for sale, and getting it in the best condition to attract buyers, is likely to involve some financial outlay. This might sound counter-intuitive, but a little money spent on maintenance and home styling can translate into a premium sale price down the line – don’t lose sight of that!
You should carry out any necessary maintenance and repairs that might put off potential buyers, such as leaks and water damage, peeling wallpaper, and scuffed or damaged woodwork. A fresh coat of paint on tired or marked walls can work wonders to make your home feel clean, bright and fresh. It’s also important to pay attention the outside areas, tidying up the garden and creating a welcoming entrance.
Depending on the condition of your property, you may be able to do all of the work yourself or you may need to pay contractors and professional cleaners along the way. Your real estate agent will be able to advise you about which works are essential and will have maximum impact on your sale, and which can be left for the future owners.
Intentionally styling your home for marketing materials and buyer inspections plays a powerful role in generating interest and offers, and driving up the sale price. You can make small changes to de-clutter, de-personalise and re-arrange the setup of the rooms even while still living in the home, but if you’re moving out before selling you can make an even bigger impact with a furniture package setup. We offer Calibre Interior Design services, where we work with you to style and present your home at its best, using Calibre’s furniture styling packages.
When considering the cost of selling a house, it’s easy to forget about moving fees. It’s unlikely that you will have the time and resources to personally move all of your furniture and possessions from your old property to your new home, so it’s important to factor in the cost of a removals company. These can be charged at a fixed or an hourly rate, so make sure you know what the agreement is up front.
The average cost of selling a property can include a range of additional miscellaneous expenses. These are costs that will apply to certain house sales, but not all.
If you are selling a rental property, holiday house or vacant land, you should factor Capital Gains Tax into your costs. This is because you are selling a second home or plot of land that counts as an asset, so you are required to pay tax on the profits from the sale.
When you sell up, there may be some outstanding council rates and strata fees to pay. These are recurring fees that are usually paid every quarter, so you need to check whether there is anything further to pay before the property actually changes hands.
At Calibre Real Estate, we understand that you want to keep the cost of selling your house to a minimum, while also doing everything you can to secure the best price in good time. We can help you find this balance. The associated costs and fees might send your head spinning, but the experts at Calibre are on hand to break it all down for you.
Our friendly and dedicated team is ready and waiting to take the stress out of your move. We can help you to understand what you’re getting for your money at every stage, to spend the money where it counts, and to achieve a sale price that makes it all worth it.
Whether you are ready to sell or just want some more information about the process, we are happy to help.
Learn more about the different types of agent commission, what you can expect for your money, and what to ask before you sign.
Quality advertising and marketing drives more buyers to your property. Find out more about what you can expect to pay for real estate advertising that gets results.