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.
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 should budget between $800 and $2000 for conveyancing.
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 on realestate.com.au, photography for the listing, the creation of a floor plan, copywriting and press advertising
Vendors should budget for $2000 for marketing.
There are two types of real estate agent fees. There’s a 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.
All fees should be discussed with the agent before signing.
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.