How much does it cost to sell a house?

I advise my clients to consider and allow for agents fees and bonuses, marketing expenses and conveyancing as well as factors such as styling, lender fees, auction fees and general property maintenance.

Agent fees and bonuses are the biggest cost when it comes to selling a house. There are two types of real estate agent fees. These are the percentage of sale fee (or commission) or a fixed fee.

A percentage of sale fee entitles the agent to a percentage of the final sale price. In Queensland, this can range from 1.5% to 3.5% and is usually determined by factors such as property value and the competition for business among different real estate agents.

A fixed fee is a dollar amount agreed between the vendor and the agent prior to selling and regardless of what the property sells for, the agent is entitled to the agreed fee.

Recently, the use of bonuses has become quite common. These are usually percentage-based incentives. The vendor and agent may make an agreement whereby if the property were to sell above the agreed reserve, the agent may be entitled to a percentage of the value above the reserve price. For example, if the property sells for $10,000 above the reserve then the agent may be entitled to 10% of that $10,000, earning them an additional $1,000 above the agreed commission.

It’s important to work with your real estate agent to come up with a commission plan that suits you and you are comfortable with.

There is an additional cost to the vendor for marketing the property to ensure the best chance of a sale. Marketing includes property boards, photography, advertising on real estate websites and local press, copywriting, flyers etc.

Each property is different and as such marketing campaigns will vary from property to property. I usually recommend clients have a professional photography shoot, full-colour 2D floor plans, full-colour open home brochures, a premium 6-foot signboard and listings on realestate.com.au and domain.com.au as a starting point.

Some agencies do not require marketing costs to be paid upfront, however, once the property sells then the vendor will be charged for marketing on top of the agent’s commission. While it can be hard to determine the exact cost of marketing, in Queensland marketing can start from about $1,000.

Conveyancing is the process of transferring legal ownership of a property from one individual to another. This process can be undertaken by a conveyancer or a solicitor. Using someone local is a good idea as they will have local knowledge and be aware of any special conditions or other issues that may arise in relation to the property.

Conveyancing costs can start from about $400 but it is important to know what you are being charged for. The initial price quoted may apply should everything go to plan and it’s a standard Contract of Sale but if extensions are required or there are any other issues that come up then you will be charged each time. It should also be noted that some conveyancers do not charge if the Contract of Sale is terminated. Prior to choosing a Conveyancer, it’s important to ask any questions relating to the service they are providing.

If you have a mortgage on the home you are selling, you may be required to pay a discharge or early exit fee to your lender. Each lender has their own fee schedule but in Queensland, it is usually between $150 and $1,500. Your lender will have their own mortgage discharge papers that will need to be completed. The discharge process can take anywhere between 14 and 21 days.

Should you wish to sell your house by auction, you will need to factor in auction fees. In Queensland, an auctioneer will charge between $400 and $1,000.

Of course, if you are selling your home privately these fees do not apply.

In some instances, I may recommend that my clients style their home to help enhance the look and feel of their home and in turn fetch a higher price. Styling can include anything from filling an empty home with furniture to adding a few pieces to create a wow factor. I may even recommend decluttering. The cost of styling will depend on how much furniture and accessories are needed to be bought in. Where a house is empty and needs to be fully staged, the cost may be around $6,000.

I always suggest to my clients that they undertake some basic maintenance. Whether it be tidying the garden or fixing the loose hinges on the pantry door, these little things can all make a big difference when it comes to selling your house. There is no need to spend a great deal of money on these things but it’s good to get them up to scratch. It’s all about making your home look its best and appealing to potential buyers.