How much does it cost to sell a property?
One of the big questions many people have when selling their property is how much does it cost?
And that can be a tricky query to answer as it depends on how much work the property might require prior to sale, the type of marketing that might be needed and a whole lot more.
So let’s take a look at some of the potential outlays involved and how they might impact the cost of selling your property.
Preparation
Before your property hits the market there’s often a little investment required in the form of preparation.
Depending on the property’s condition, this preparation might range from small repairs and a tidy to a major overhaul of certain areas.
As part of the preparation, your agent might also suggest you stage the home, which involves bringing in furniture to have the property really look its best for photography and open homes.
If you’re looking for a quick sale or seeking to make the sale friction-free for buyers, you might also wish to have pest and building inspections completed.
Although these are generally organised by the buyer, having these done can potentially help speed up the sales process.
Marketing
There’s more than one way to market a property, with potential campaigns including everything from listings on real estate portals to advertising in magazines and newspapers, on social media and more.
And different properties lend themselves to different marketing campaigns.
For example, a luxury home might warrant print advertising in a daily newspaper’s real estate liftout, but a home suited to first time buyers might be better positioned on social media.
Regardless of where your property is to appear, it will need to have photographs taken and perhaps a video or floorplan created.
Your agent should discuss their proposed marketing strategy with you at the outset, including where your property should be advertised and how much it will cost.
Conveyancing
As selling a property is a legal process, you will need to engage a conveyancer or legal representative.
This person acts in your legal interests to ensure the contract of sale meets your needs and adheres to the law.
They also keep the sale on track by liaising with the buyer’s representative to meet all necessary milestones.
Agent commission
There’s strategy involved in selling a property, and your real estate agent is a key element of that strategy.
Their role is to work with you to identify what you’re hoping to achieve, then create a property sales campaign that meets your needs.
In return, they charge a commission on the sale of the property which in Australia averages between 2 per cent and 2.5 per cent nationally.
As realestate.com.au explains, that means if you’re selling a home for $1 million, the average commission will likely be around $20-$25k.
That said, commissions can vary depending on which state you live in, with some regions averaging as little as 1.8 per cent, while other areas can be as high as 3.5 per cent.
It’s important to note, there’s far more to selecting an agent than just the commission they charge and the cheapest may not be the most effective when it comes to delivering the right result.
Mortgage costs
In addition to the costs involved with selling your property, there may also be lender costs relating to your mortgage.
For example your bank or lending institution may charge a mortgage discharge fee or early exit fee. You should check with your bank or lending institution to see whether these apply to your loan and how much they might be.
Moving
The final cost associated with selling a property is the removal. And again this is a cost that can vary depending on how much is to be moved and where it’s to be moved to.
How we can help
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