How much does it cost to sell a house in Australia?
Understanding some of the possible costs involved when it comes to selling your property can help you to set a suitable budget early and avoid unwanted surprises. Here, we’ll take you through some of the key expenses you can expect when selling a home.
The old house has been good to you over the years, but now it’s time to sell – you’re looking to move to a new area, for somewhere bigger as your family grows, or maybe downsizing now that the kids have moved out. Whatever the reason may be, you’ve decided to put your house on the market, but before you sell, there are a number of costs you’ll need to consider. You may want to get the place looking its best, consider a real estate agent to sell it and someone to handle the legal side of things; and there are all those little jobs you never got around to, like that leaky tap in the backyard you always promised you’d get around to fixing…
How much does it actually cost to sell a house in Australia in 2022? We’ve considered some of the key expenses you could face, as well as considerations you may weigh up when it comes time to put your house on the market.
What costs can you face when it comes time to sell your house?
There are various costs that come with selling your house. Common costs include:
- Pre-market repairs and renovations
- Marketing your home
- Real estate agent fees
- Styling and staging costs
- Conveyancing costs
- Lender fees
- Taxes
Some of these costs, like conveyancing, are likely to be unavoidable, while others are dependent on your decisions, such as what type of marketing campaign you want to use, and what kind of repairs you conduct on the house before selling. If you decide to sell, we’ve rounded up some estimates to give you an idea of what you can expect to pay.
How much do pre-market repairs and renovations cost?
Unless you plan to market your property as a demolition opportunity or a ‘fixer upper’, you’ll likely want it to look its best when it goes to market to increase its appeal to potential buyers. That could well mean tackling some of those little repair jobs that you’ve been putting off. Minor repairs and refreshments, such as slapping a fresh coat of paint on the fence or replacing a door, may only cost a few hundred dollars. On the other end of the scale, things like knocking down a wall to create an open-plan living space or renovating a bathroom can cost well into the thousands.
Before you get started on any major renovations, it’s a good idea to consider what market demand is like by looking at similar properties in your area, and deciding whether or not renovations will add substantial value to your house. For example, you might find that it will cost $25,000 to completely rip out your kitchen and put in a fancy new one with all the latest gadgets and gizmos, but if this is only likely to add up to $25,000 to the sale price of the house, then you may decide that doing so is not actually worth the investment. You may wish to speak with a real estate agent for further guidance.
Bear in mind that while these costs could serve as helpful guide, building costs have been on the rise in Australia and some experts predict this trend will continue well into 2022. So, you may need to be budget a bit extra for your improvements in the event that the cost of materials and labour increase.
Potential cost of pre-market repairs and renovations: $100 – $30,000+
How much does marketing a home for sale cost?
A typical agent-assisted marketing campaign, separate from the agent’s fees, is likely to start at $700 to $1,500, but Rebecca Jarrett-Dalton of Two Red Shoes mortgage brokers told Canstar that they can run as high as $3,000.
She said that a marketing program with an agent might include “the usual suspects” such as letterbox drops, calls to the agent’s database, online and social media posts, and professionally shot photos and videos. All of these things may be included in the agent’s fees, or a marketing campaign may be available as a separate package on top.
Ms Jarrett-Dalton told us that there are a variety of other options when it comes to marketing your home for sale, starting from a “do it (largely) yourself” approach with relatively low costs.
An extremely basic DIY marketing campaign could merely involve a self-made sign and advertisements in a local paper or magazine, which could cost up to $100. You could also choose to take out advertisements on social media platforms like Instagram and Facebook, which could cost anywhere from $100 to $1,000 and above.
Another (more common) option is to run an ‘agent-assisted’ sales campaign, which involves paying a third-party company to list your property on websites such as realestate.com.au. Such services can also provide you with professionally made signage and brochures, and businesses including propertynow.com.au and noagentproperty.com.au have basic packages starting at around $700.
Potential cost of marketing a home for sale: $100 – $3,000+
How much do real estate agent fees cost?
The amount charged by real estate agents varies widely across the country. Some agents will charge a flat fee for their services, but Ms Jarrett-Dalton told us that you can expect to pay anywhere between 1.6% of your sale price (usually not including a marketing fee) to 2.75% for an all-inclusive package. The cost can also be more than this, depending on the house.
“There are very premium agencies charging considerably more for unique, high-end or acreage properties,” she said.
On top of this, she said, an auctioneer will typically cost around $500.
Remember that if you choose to sell through an agent, there will be a fee attached. This fee can vary, depending on whether you opt for an open listing, meaning you can work with multiple agents, or an exclusive listing, meaning you’ll work with only one. If you opt for an exclusive listing, you are likely to pay more, but advantages of this can include more personalised service, and a greater incentive for the agent to sell your property.
Whichever kind of listing you choose, it is advisable to talk about costs upfront with your agent, and don’t be afraid to haggle, as agents who want your business may well be prepared to reduce their fees a little.
As mentioned, you can choose to forego an agent when selling your home, but this could be a risky approach if you are not experienced. A good real estate agent will have the skills, knowledge and experience to assist you in this process. They will likely be able to help you determine a fair market value for your property, connect you to a bigger pool of potential buyers, and advise you on the type of sale best suited to your needs. A professional agent may also be able to assist in marketing the home and styling it for sale, meaning you will potentially need to put in less legwork in these areas.
Potential cost of real estate agents’ fees: between 1.6% to 2.75% of your sale price. A flat fee may also be set by an agent.
How much does styling and staging a home for sale cost?
Senior Property Stylist at Coco Republic, Charmaine Coombes, told us that basic styling and staging packages start at around $2,500. The price can run up to $20,000, depending on the size of the property, whether the property is empty (such as a new build) or has some of the client’s existing furniture, and the inventory required.
Ms Coombes said that having a home professionally styled for sale comes with a number of benefits, including a potentially higher sale price, and a shorter amount of time on the market.
She told Canstar that a stylist will typically like to meet with a client or agent at least three to four weeks out from the date the home goes up for sale. This allows time to declutter the house and carry out any necessary repairs and maintenance, as well as to put larger items in storage so the property is ready for styling and photography.
Potential cost of styling and staging a home for sale: $2,500 – $20,000+
How much does conveyancing cost?
Dion Dosualdo of the WA Division of the Australian Institute of Conveyancers told Canstar that Australians can potentially expect to pay anywhere between $499 and $3,000 for conveyancing services. He was quick to add, though, that there is no way to accurately determine the average cost of conveyancing, as the process of transferring property is complex. Because of the variables involved – such as the circumstances of the buyer and the seller, plus the property specifics – it can be unwise for consumers to go into the process with any firm expectation as to cost, irrespective of where they live in Australia.
Mr Dosualdo said that a conveyancer’s advertised fee may not be indicative of the final fee, simply because of the complexity of the work that can be involved. He told Canstar that conveyancers may either advertise a “flat fee” or fees “starting from” a certain amount, but that either way, the additional work involved can mean that the amount you actually pay will end up being higher.
“Speaking to any conveyancer, in particular while they are attempting to provide a quote, is like standing next to a mechanic while they pop the hood of your car and try to find out what that clunking noise is all about,” he said. This means it’s difficult to give a definitive estimate of how much a consumer might expect to pay for conveyancing, because of the variety of work that can be required.
So what does conveyancing typically involve? While the job is complex, their responsibilities typically include sourcing certificates of title for a property, overseeing legal documents such as the contracts of sale, liaising with governments and local councils and representing buyers and sellers on settlement day. They can also assist with other things, including helping clients to arrange building and pest inspections and land surveys, and following up on outstanding rates and utility bills.
If you are selling a property, a conveyancing specialist will also typically help you draft your vendor’s statement, which is a document that discloses important information about the property to potential buyers.
Disclosure requirements vary state by state. “We are not comparing apples with apples,” Mr Dosualdo told Canstar. “It’s probably more like comparing apples with apple pie.” In essence, what this means, he explained, is that the more onerous disclosure requirements are, the more a consumer can potentially expect to pay.
Who can do conveyancing?
In the majority of Australian states and territories, you can engage a solicitor or a trained professional known as a conveyancer to conduct conveyancing for you. In some states and territories, however, only registered solicitors can provide professional conveyancing services:
- The ACT: A solicitor
- New South Wales: A professional conveyancer or solicitor
- The Northern Territory: A professional conveyancer or solicitor
- Queensland: A solicitor
- South Australia: A professional conveyancer or solicitor
- Tasmania: A professional conveyancer or solicitor
- Victoria: A professional conveyancer or solicitor
- Western Australia: A professional conveyancer or solicitor
Potential cost of conveyancing: $499 – $3,000+
How much do lender fees cost?
If you are ending your contract with your home loan lender, you may well encounter certain fees and charges. Mortgage exit fees, sometimes known as termination or early exit fees, were banned on July 1, 2011. If you purchased your home before then, you may still have to pay this fee if you end your contract with your lender.
While exit fees have been outlawed, lenders still typically charge fees for ending your contact. Depending on your home loan lender, you may well be required to pay what’s known as a discharge, termination or settlement fee to cover the costs of administration. The price of discharge fees varies, but according to figures from OpenAgent, in general, they cost between $275 and $325.
Some lenders may charge ‘break fees’. These are more common on longer fixed-term loans where the borrower has committed to making a certain amount in repayments over time. For example, if interest rates have fallen since a home loan commenced, a lender may try to retain the fees it would have earned, had the fixed term run to its completion.
It is not possible to give an exact estimate of how much break fees will cost, if they apply to your home loan, but the major banks advise that they can potentially be anywhere from a few thousand to tens of thousands of dollars. You may want to speak with your lender directly about what break fees you might be charged.
Potential cost of lender fees: $275 – $325 for discharge fees. Break fees will depend on your loan, and can be in the tens of thousands of dollars, depending on the circumstances.
What taxes are associated with selling a house?
When you sell certain types of property, including real estate, the difference between how much you paid for it and how much you sold it for is known as capital gains, and this can have tax implications for you. According to the Australian Tax Office (ATO), if you sell an investment property and make a profit, that profit must be declared by you on your tax return. The tax you pay on a capital gain is known as capital gains tax (GCT).
There are some exemptions to CGT. For example, the principal place of residence (PPOR) exemption applies if you or your family live in a home and you do not use it to generate an income. You must satisfy certain eligibility criteria to qualify for the PPOR, meaning you must live in the property for the whole time you own it, generally keep your possessions there, use the address to receive postal mail, and have utility accounts in your name.
→ Read more: What is capital gains tax?
Potential taxes associated with selling a house: It’s advisable to speak with a qualified tax professional to determine the tax implications of selling your house, and whether you will be required to pay CGT.
If you are thinking about selling a house in Australia, keep in mind that there are a number of options available to you, and there is no one-size-fits-all estimate of the costs involved. It all depends on factors such as the value of the property, whether major renovations are needed, agent fees and marketing costs, and the possible tax implications of selling.
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This article was reviewed by our Deputy Editor Sean Callery before it was updated, as part of our fact-checking process.
Alasdair Duncan is a Senior Finance Journalist at Canstar, specialising in home loans, property and lifestyle topics. He has written more than 200 articles for Canstar and his work is widely referenced by other publishers and media outlets, including Yahoo Finance, The New Daily, The Motley Fool and Sky News. He has featured as a guest author for property website homely.com.au.
In his more than 15 years working in the media, Alasdair has written for a broad range of publications. Before joining Canstar, he was a News Editor at Pedestrian.TV, part of Australia’s leading youth media group. His work has also appeared on ABC News, Junkee, Rolling Stone, Kotaku, the Sydney Star Observer and The Brag. He has a Bachelor of Laws (Honours) and a Bachelor of Arts with a major in Journalism from the University of Queensland.
When he is not writing about finance for Canstar, Alasdair can probably be found at the beach with his two dogs or listening to podcasts about pop music. You can follow Alasdair on LinkedIn and Twitter.
- What costs can you face when it comes time to sell your house?
- How much do pre-market repairs and renovations cost?
- How much does marketing a home for sale cost?
- How much do real estate agent fees cost?
- How much does styling and staging a home for sale cost?
- How much does conveyancing cost?
- How much do lender fees cost?
- What taxes are associated with selling a house?
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