The real cost of selling your home
When preparing to sell, many homeowners focus on their ideal price and start adding up how much they will have to spend on their next home, but fail to consider the costs involved with the transaction itself.
As part of the process, you need to allocate budget for repairs, marketing and legal fees. However, the good news is these are investments that can improve your overall outcome.
Firstly, your agent is likely to recommend investing in fresh paint, updated fixtures, improved lighting, or minor repairs. Even simple changes such as tidying outdoor areas or replacing worn finishes can help your property feel more appealing.
It may even be worthwhile to work with a professional property stylist who can bring in or remove furniture so your house looks like something out of a magazine. The goal is to present a home that allows buyers to see its full potential from the moment they walk through the door.
How marketing influences your final sale result
Once your home is looking its best, marketing is one of the most important investments in the selling process. The right campaign ensures your property reaches a wide pool of buyers, creating competition and helping achieve a stronger result.
A tailored approach should include professional photography, floor plans, online listings and targeted advertising. In some cases, additional elements such as video or drone footage can further enhance the campaign, depending on the property.
While it can be tempting to minimise marketing spend, broader exposure often increases the chances of attracting the right buyer, which can ultimately influence the final sale price.
The key professional costs to plan for
There are also professional costs involved in every home sale. Legal and conveyancing services are required to prepare contracts, manage negotiations and complete settlement. These services help ensure the transaction runs smoothly and protect your interests throughout the process.
If you have an existing mortgage, you may also need to account for discharge fees from your lender, along with any associated administrative costs.
Then there’s moving, which will cost you anywhere from $2,000 and above, depending on the size of your place and the amount of belongings you have. Storage may also be a cost to consider, depending on your next moves.
Finally, if you’re an investor, there are likely to be capital gains taxes involved with your sale, so don’t ‘count your chickens’ until you have factored this in.
Understanding agent fees and commission structures
It’s always worth having an agent who can ensure you’re selling for the right price, help you avoid expensive mistakes and bring a higher number of interested buyers through the door.
Agent commission is typically calculated as a percentage of the final sale price and can vary depending on the agent’s experience, local market conditions and the level of service provided. You will receive a full explanation of your agent’s fees before you sign a contract, and the funds will be paid to your agent when the sale is finalised.
Every investment should deliver returns. Freshening up the property, for example, can boost your sale price by tens of thousands. Meanwhile, having an agent to negotiate on your behalf can ensure you get an outcome you’re thrilled with.
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