Cost for selling a property in Sydney's Southwest

There’s a myriad of costs to vendors when selling a house. From conveyancing costs to agents' fees and bonuses to marketing expenses, there’s lots to consider.

Real estate Fees

The real estate commission is usually the biggest fee a seller payshttps://www.realestate.com.au/advice/how-much-does-it-cost-to-sell-a-house/ from 1% to 3% of the sale price. There are two types of real estate agent fees and they are flat fee, where the agent and vendor agree on a fixed fee for the sale of the property, and no matter what it sells for, the fee is set. Then there’s a ‘percentage of sale’ fee, where the agent gets a certain percentage of the final sale price.

The percentage of sale fee, or 'commission', can range from 1% to 3%, but is influenced by a number of factors, such as the property value and the competition for business among agents. Bonuses are also increasingly being  used which are effectively incentive bonuses, where the agent and vendor agree on a percentage-based bonus if the property makes above the agreed reserve. It may be, say, 10% of the amount above the reserve. 

For example, a property expected to sell for $1 million, being sold by an agent on a 1.5% ‘percentage of sale’ fee and 10% ‘bonus’ fee, that goes for $1.1 million, nets the agent $25,000. This is made up of $15,000 for the percentage fee (1.5% of $1 million) plus a bonus $10,000 (10% of the $100,000 above reserve).

All fees should be discussed with the agent before signing.

Lender fees

If you have a mortgage on the current home you're selling, you'll need to pay your lender a discharge or early exit fee. Each lender charges their customers a different amount for this service, but it usually falls within the range of $150 and $1500.

Your lender should have their own mortgage discharge forms to fill in, with the entire discharge process usually taking between 14 and 21 days.

Real estate styling costs

If you’re thinking about selling your home, it’s likely there are things you could do to enhance the appeal of your place and potentially raise its value. If you’ve been putting off sprucing up the exterior of your property, painting the inside or repairing a staircase or a leaky faucet, now’s the time to make those changes.

To maximise sale price, many agents recommend professional styling and basic maintenance around the property.

When a potential buyer walks into a house, they’re thinking to themselves ‘do I love it?’, ‘could I live here?’ and styling is about making the property as appealing as possible, to show off the space and make sure it feels good.

The cost of styling can range from as much as $6000 to fill and style an empty property, to very little, with good agents offering free advice about ways to declutter a home and make it look great

Conveyancing fees

Conveyancing is the process of transferring legal ownership of a property from one person to another and is required in every real estate purchase. It can be done by licensed conveyancers and solicitors.

Vendors use a local solicitor, as they tend to have local knowledge and are able to recognise if something, like a special condition, might be an issue.

Vendors should budget between $800 and $2000 for conveyancing.

Marketing costs

The vendor covers the cost of marketing their property.

An agent will recommend a marketing campaign, which might include a board out the front of the house, listing in realestate.com.au, domain.com.au and many more real estate market places photography for the listing, the creation of a floor plan, copywriting and press advertising. Each listing is unique and depending on budget, campaigns are adjusted.

In 2020, the average marketing campaign in the Melbourne market costs between $6500 and $8000.

In Sydney, the marketing cost can range between $4500 to $10,000, depending on the property and the advertising schedule.

Source: Realestate.com.au

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Disclaimers

Data provided in this article is of a general nature and should not be construed as specific advice or relied upon in lieu of appropriate professional advice.