What is the Cost of Selling a House? – A Comprehensive Breakdown

No matter how you decide to sell your home, there are always fees involved. The good news for the savvy seller is that opting to sell privately can help minimize some of these expenses. However, there are several unavoidable costs you'll need to budget for. Whether you're selling through an agent or taking the DIY route, understanding these costs is key to maximizing your net profit. Read on to discover what you need to consider when selling your house.

1. Conveyancing Fees

If you’re not a property law expert, you’ll likely need a conveyancer (or solicitor) to manage all the legal paperwork for your sale and handle the title transfer. This service can cost up to $1,500, though many sellers now opt for flat-fee online conveyancing options that are more budget-friendly. For the confident DIY seller, there are even guides available to help you navigate conveyancing on your own.

2. Real Estate Agent’s Fees

While using an agent has its benefits, the major downside is their commission—which can add up to tens of thousands of dollars. Typically, agents charge around 2% to 3% (plus GST) of the final sale price. Keep in mind that this fee is meant to motivate agents to secure a higher sale price, though the agency may take a significant cut of that commission. On top of commissions, agents often earn additional bonuses for listing properties, which can sometimes diminish their drive to negotiate the best deal for you.

3. Selling Your Home Privately via Online Platforms

One of the greatest ways to reduce selling costs is by handling the sale yourself through a robust online platform. These services offer the same essential tools that traditional agents provide—such as marketing, advertisement on major real estate websites, and professional support—but all for a fixed fee. For example, rather than paying up to $25,000 in commissions on a sale, you might only pay a flat fee of around less than $1,000, saving you a significant amount on fees.

4. Marketing Costs

Effective marketing is crucial to attract potential buyers, and there are several costs to consider:

• For Sale Signs: A physical sign on your property, which typically costs around $65.

• Property Valuation and Market Reports: A professional evaluation usually costs between $300 to $600, which provides essential insights into setting the right asking price.

• Online Listings: While listing your home online is critical—as 90% of buyers start their search on the Internet—there may be subscription fees or optional upgrades available on major property portals.

• Inspection Booking Software: Subscription services for managing appointment bookings can start at around $10 per month.

5. Online Property Listing Upgrades

To maximize exposure on leading platforms such as realestate.com.au, you might choose to upgrade your online listing. Enhanced listings, like Premiere or Highlight positions, can significantly boost inquiry rates—sometimes even tripling them. Although the cost for these upgrades varies by location and property type, investing in additional exposure can lead to a quicker and more lucrative sale.

6. Home Preparation Costs (Renovations, Repairs, Staging, Cleaning)

The cost of preparing your home for sale is ultimately up to you. Basic tasks like tidying, decluttering, and simple styling can sometimes be done yourself to save money. However, if your property needs repairs, renovations, or professional staging, these costs should be factored into your overall budget. Thoughtful home preparation can not only accelerate the sale but may also attract higher offers.

7. Auction Fees

If you decide to sell your property at auction, hiring an auctioneer is typically required. Auction fees can range between $400 and $1,000 depending on the auctioneer's experience and the area in which you're selling.

8. Capital Gains Tax

Capital Gains Tax (CGT) applies when you sell an asset for more than its purchase price, and while it is not a separate tax, it’s part of your income tax. CGT is particularly relevant for investment or commercial properties. Calculating your CGT liability involves a variety of factors, including the duration of ownership and any improvements made; therefore, it’s wise to consult your accountant for a precise estimate.

9. Lender Fees

Finally, there may be lender or exit fees associated with closing your mortgage. Most banks charge a one-off exit fee of less than $400. If your mortgage was taken out before 1 July 2011, additional Mortgage Exit Fees might apply—be sure to review your lender’s terms.

Sell for More, with Fewer Fees

By understanding and carefully managing these costs, you can significantly impact the net profit from selling your house. Whether you choose to work with an agent or decide to go it alone using an online platform, being well-informed about the expenses involved is the first step to a financially successful sale.