Selling your home is a truly exciting time, but before you whip out the paperwork and get your home on the market it’s important to understand what’s involved. The costs of selling your home will depend on your unique situation but they can often be substantial. That means it’s definitely worth understanding what those costs are and how you can reduce them.
The costs of selling your home
As well as understanding the costs of selling your home, you’ll need to be clear on the funds you’ll need for specific timeframes in the selling journey. What you also need to consider is where (and what) you’re buying next (if you are buying) and how you’ll sell your home so you can minimise costs wherever possible.
Here are the selling costs you need to take into consideration when putting your home on the market.
1. Costs of de-cluttering, repairs, or touching up your home
To start off, you’ll need to prep your home for sale. That means de-cluttering, completing any repairs that you’ve been putting off, and touching up your home so it looks fresh, clean and tidy. Whether it’s a simple coat of paint or a leaky tap, there’s almost always something that could improve the look or functionality of your home.
Costs associated with this might include paying for:
- Paint, rollers, and paintbrushes
- Replacing windows or flyscreens
- Taking rubbish to the tip
- New carpets or floorboards
- Replacing handles, tapware, or showerheads
Total cost: $500 – $6,000
2. Property staging or styling
Property staging is crucial, especially if you’re looking to sell your home in a hurry. The best part about staging a property is that it can be as involved as you like. You need a whole house completely staged with furniture, or perhaps you’d just like to hire some finishing touches and style your home yourself by adding some pot plants and throws. Visit Pinterest for inspiration on home staging ideas.
Total cost: $1,000 – $5,000
It’s important to factor marketing into the costs of selling your home, as it really helps in getting exposure for your home so that more buyers come to see it. This typically includes a professional photoshoot – crucial in convincing people to purchase your home. It also includes real estate listings in newspapers and on sites like realestate.com.au.
Total cost: 0.5% -1% of the selling price of your home
4. Legal / Conveyancing
If you engage a solicitor or conveyancer (which you really should!), then you’ll also need to pay their fees. To get the best rate possible, we advise getting a couple of quotes before locking in your conveyancer of choice.
Total cost: $1,000 – $2,000
5. Agent’s fees
The costs of selling your home will always include agent’s fees, which vary according to where in the country you are. With agent’s fees, you can usually choose from a flat fee or commission-based fee structure. Agent’s fees may increase with significantly higher-priced homes.
Total cost: A flat fee, or anywhere between 1.5% and 4.5% of your property’s value
6. Selling fees
Lastly, one of the most significant costs of selling your home is the selling fees. This could include any mortgage discharge fees, which are around $150 – $600 as well as capital gains taxes, which can be substantial. Figure out how to calculate your capital gains taxes here and reduce your payable tax as much as possible.
Additionally, if you’re selling at auction, you’ll need to factor in the cost of an auctioneer, unless this is included in the agent’s fees. This could cost anywhere from $400 – $1,000.
When your home is sold, you also need to contemplate the costs of moving. Once you understand all the costs of selling your home, you can decide if it’s the right time for you to move. Timing is everything when it comes to real estate, especially in the Sydney property market. On the plus side, the Sydney property market is almost always guaranteed to be increasing in value over time.
Luckily, we’re experts in the Sydney area and we can advise you on the right time to sell. We understand all the costs involved in selling your home as well as how to reduce those costs. For more advice on selling your home, click here.