Selling your home is an exciting time, but it’s important to understand that there are a range of costs associated with selling a property. Preparing for these costs will help you to budget and avoid any surprises. Some of these costs can also be thought of as investments to get you a higher selling price.
Pre-sale repairs and renovations
Even if your home is in good condition, there are likely to be some areas that need repairs or renovation before listing it for sale. Buyers are often looking for homes that are move-in ready, so addressing minor repairs or completing small renovations can make your property more appealing.
Common pre-listing repairs and upgrades include:
- Fixing leaking taps, squeaky doors or broken windows.
- Fresh paint to brighten up rooms.
- Landscaping to enhance kerb appeal.
- Updating outdated fixtures or fittings.
Depending on the scope of these improvements, the costs can add up, but making your home look its best could lead to both a higher selling price and a quicker sale.
Home styling
Home styling (aka home staging) involves rearranging or renting furniture and décor to make the space look more attractive to potential buyers. Professionally staged homes often sell faster and for more money because they help buyers to visualise themselves living in the space.
Home styling services can cost anywhere from a few hundred to a few thousand dollars, depending on the size of your home and the level of staging required. While this cost may seem unnecessary, it can make a big difference in how your home is perceived, especially in a competitive market.
Marketing costs
Marketing is essential to attract buyers, but it’s not always covered in your real estate agent’s commission. Depending on your agreement, you might need to pay for additional marketing efforts, including:
- Online listings on real estate websites.
- Professional photography and videography to make your home look its best.
- Print advertising in local newspapers or real estate magazines.
- Virtual tours to cater to online buyers, especially those from out of town or interstate.
These costs can range from a few hundred to several thousand dollars, depending on how aggressively you want to market your property. It’s important to discuss marketing strategies and costs with your agent before listing your home.
Real estate agent commission
One of the biggest costs that sellers often overlook is real estate agent commission. In Australia, agents typically charge between 2% to 3% of the final sale price of the home. However, hiring an experienced real estate agent can help you secure the best possible selling price for your property, more than covering the commission that they charge.
For example, the latest figures from realestate.com show that our Purple Cow agents achieve selling prices that are $73,000 higher than competing agents in the Greater Springfield region.
Conveyancing and legal fees
Conveyancing is the legal process of transferring ownership of a property from the seller to the buyer. In Australia, you’ll need to hire a conveyancer or solicitor to handle this process, and their fees typically range from $800 to $2,000, depending on the complexity of the sale.
These legal professionals handle tasks such as preparing the contract of sale, managing settlement and ensuring all legal obligations are met. These costs ensure that the sale is legally binding and runs smoothly.
Moving costs
Once you’ve sold your home, you’ll need to move out. Moving costs can vary depending on how much you need to transport, the distance, and whether you hire professional movers. On average, you could be looking at several hundred to a few thousand dollars to cover:
- Packing materials (boxes, tape, etc.).
- Professional moving services.
- Storage fees if you’re unable to move into your new home right away.
- Insurance for your belongings during transit.
Mortgage discharge fees
If you still have a mortgage (loan) on your property, there may be fees associated with paying it off early. Mortgage discharge fees can range from $150 to $600, depending on your lender. If you have a fixed-rate loan and pay it off before the term ends, you may also be charged break fees.
Before selling, check with your lender to understand any discharge or break costs, and factor these into your budget.
Capital gains tax (CGT)
If the home you’re selling has always been your residential home, you will be exempt from capital gains tax (CGT). But if the property has been used as an investment property, you will be liable for CGT on the profit from sale.
CGT is calculated based on the difference between the property’s selling price and its cost base, which includes its original purchase price. The profit is added to your taxable income and taxed at your marginal tax rate.
If you are selling a rental property, it’s important to consult with a tax advisor or accountant to understand your potential CGT liability and factor it into your financial planning.
How our Purple Cow team can help
Like to find out more about how we can help you to sell your home in the Greater Springfield region for top dollar?
Contact us today for an obligation-free chat and experience the award-winning Purple Cow difference for yourself.
