How much does it cost to sell a house in Australia?
The cost of selling a house varies depending on a number of factors, most of which are determined by the standard practices of your state. For example; the average real estate commission in NSW is 2.46% of the total property, while for Victoria it is 2.05% and Queensland sits on 2.8%.
This fluctuation is likely due to the median house value in each state. A commission payment for a real estate agent is likely to be around $34,689 in Sydney, $20,970 in Melbourne, and $15,848 in Perth. However, these are not the only costs involved in selling a house.
The most common costs associated with selling a property include: market prep renovations, advertising costs, solicitors fees/conveyancing fees, agent fees, settlement fees, lender fees, taxes, and styling/staging costs. Each one of these will vary drastically depending on the benefit that you wish to get out of them.
For example, some people choose to avoid market renovations and simply sell the house as it is – this saves money in the short term and while it is not the best financial choice if you can afford a renovation, for some homeowners it is the ideal choice to help speed the process of selling along.
The average cost of selling a house in Australia ranges from $14,798-$34,689 for real estate-related costs. This includes marketing, conveyancer/solicitor fees, lender fees, and the cost of staging a showing. Adding renovations, taxes, lender fees and auction fees could knock this price up by quite a lot. Here is a breakdown of real estate agency average fees by city, from highest to lowest.
|
City
|
Average Commission Fee ($)
|
|
Sydney NSW
|
34,689
|
|
Canberra ACT
|
22,145
|
|
Melbourne VIC
|
20,970
|
|
Hobart TAS
|
19,130
|
|
Brisbane QLD
|
18,990
|
|
Darwin NT
|
17,038
|
|
Perth WA
|
15,848
|
|
Adelaide SA
|
14,798
|
The process of selling a home can be long and arduous, which is why you may be considering selling your house privately. (This is much riskier, but can ultimately save money and time if done right). When selling a home, the first step is researching and choosing an agent.
You will then want to present them with the best version of your home possible (i.e. deep cleaned, tidied, organized and de-cluttered). Building a relationship with your agent based on trust is very important and you should make sure that you are familiar with their expectations for the project (such as a commission fee and an estimate of your home’s value / a rough idea of the selling prices that you both find acceptable).
Next, you want to decide how to sell – whether you want to auction or simply put the house on the market, or even a private treaty, though many real estate agents will argue that this is a much lass beneficial choice for the homeowner due to the length of time it takes to complete.
Finally, you will set a selling price, market the property, and eventually approve an offer with the agent. The whole process of selling a house usually takes about 3-6 months, with a 30-45 day closing period once an offer is accepted. Read on for an overview of the main costs involved with selling a house and an estimation of how much they will set you back with regard to price influencing factors.
Costs when selling a house: breaking down the main costs of selling a house
Renovation & Repairs Pre-Market
Renovating your home before selling can significantly increase the resale value of the property. On average, a full renovation will add around 10% to the overall value of a home.
This will vary and can even be much more depending on the type of renovation; generally, the most profitable home improvements are bathroom remodels, deck additions, updating sliding/vinyl windows, and kitchen renovations.
Even if you do not wish to renovate your home before selling, you will almost certainly have to pay for minor repairs and refurbishments. Small touches like a fresh paint coat or an updated window fixture can go a long way in impressing potential buyers. These minor efforts can usually be kept under a few hundred dollars for those operating on a tight budget.
By contrast, intensive renovations can cost up to $30,000 – though you will want to keep in mind that the renovation has to add more value to the property than it costs to add in order to make it worthwhile. Thus, the cost of pre-sale preparations ranges from $100-$30,000.
Advertising Costs
The majority of advertising and marketing costs will be included in an agent’s package, but you may opt to have them separately or choose an agent who charges additionally for this service.
These fees will cover digital marketing such as social media posts, videos and photos, as well as physical advertising like letterbox drops and flyers. On average, assisted marketing costs range from $700-$1,500 – though they can climb much higher depending on the package and exposure that you decide works best for your property.
Conveyancing Fees
Conveyancing fees are often overlooked because people wrongly assume that a real estate agent will be able to handle conveyancing duties. Conveyancing refers to the transfer of legal title from one person to another, and without it there can be no sale.
Only licensed conveyancers and solicitors are capable of handling this task. Conveyancing fees vary greatly depending on the complexity of the home, the circumstances between buyer and seller, and the specifics of the property. In Australia, conveyancing services can reasonably cost anywhere between $500-$3,000.
Lender Fees
If you have a contract with a home loan lender that you wish to exit upon selling your house, there will likely be an exit fee of some description – they were officially banned in 2011, but most lenders will still find a way to charge you for ending the contract.
These fees will usually be around $275-325 (discharge) or much more if there are break fees involved. The best strategy is to speak with your bank so that you know well ahead of time if you will have to face any of these costs – hopefully not!
