Australian homeowners must absorb a multitude of expenses when selling their homes, from general maintenance to repairs, making the garden look its best, and undertaking internal upgrades. These may include painting and decorating plus the all-important marketing and agent’s fees. Sellers need to be fully aware of the financial expectations surrounding them and their house sales.
Ray White Drysdale ensures you aren’t surprised by unexpected fees, especially when the expenses and outgoings of selling a house are so high. We offer candid advice to answer questions such as “How much does it cost to sell a house?” Let us help you get the process rolling.
Agency fees for selling a house, often called commissions, are the amount the seller pays an agency for their services to sell a property. There are two common types of real estate agent fees. A flat price entails the agent and owner agreeing on a fixed fee for the sale of the property. No matter what it sells for, the cost is set. There’s also a “percentage of sale” fee, where the agent gets a specified percentage of the final sale price. The rate is usually lower for higher-value properties and higher for lower-value properties.
Agency fees can vary throughout Australia, with a general rule that, on average, you can expect to pay 1.5 – 2.2% to the real estate agent to sell your home. This commission means that estate agents will charge $20,000-$25,000 to sell a one-million-dollar property. However, this is an average with a national range of around 0.75-4.5% of the property’s value.
The percentage charged by the agent will depend on the value of the property and the amount of competition created by other agents in the area. The more practising agents in the area, the lower the percentage will usually be.
One of the most significant challenges for sellers is choosing the correct estate agent to sell their house. Different agents charge different fees depending on their experience or expertise in a particular area of real estate sales. You should discuss all payments with the agent to minimise surprises and unexpected costs before signing.
Other unavoidable real estate selling fees include conveyancing and marketing charges. Conveyancing means transferring legal property ownership from one person to another and is required in every real estate purchase. Licensed conveyancers and solicitors fulfil this process. Owners should budget between $800 and $2000 for conveyancing.
Ensuring the right people know that your property is on the market is critical to maximising the number of potential buyers. You want to verify that you receive the highest number of offers or, at least, an offer close to the asking price. The vendor covers the cost of marketing their property in most property sales in Australia, but the agent can assist and offer advice and expertise.
An agent will recommend a marketing campaign, including a board in front of the property, listing on realestate.com.au, photographing the listing, creating a floor plan, copywriting, and press advertising. Sellers should budget around $2000 – $3500 for the marketing of their property.
You’ll need to pay your lender a discharge or early exit fee if you have a mortgage on the home you’re selling. Each lender charges their customers a different amount for this service, but it usually falls between $150 and $1500. The lender should have mortgage discharge forms for you to complete, and the process generally takes between 14 and 21 days. Ask us for more info.
Including conveyancing costs, agent’s fees, bonuses, and marketing expenses, there are many aspects to consider when selling a house. Agent fees are a topic of contention for many vendors, with people rightly wanting to give away as little of their house sale price as possible. Ray White Drysdale understands that and will work tirelessly to ensure we quote a fair price for agent fees for selling your house.
Book an appointment today to get your property sale underway. How Much Does it Cost to Sell a House? The answer depends on the value of the property and the fees you negotiate with your real estate agent.
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