If you’re planning to put your property on the market, it’s important to know what the associated costs are – to help you make the best possible decisions about sales strategies and marketing budgets.
Of course, fees can vary depending on your agent, other deliverers of professional services (such as conveyancers and solicitors) and your finance broker. So, to help you have a basic understanding of what selling your home may cost you, take a look at these ballpark figures.
To keep the number-crunching simple, we’re using the example of an ‘average’ occupied home – selling for $500,000 and cost estimates at the lower-end of the scale.
The Cost of Selling Your Home
On a property selling for $500,000, understanding these typical costs can help you set your budget.
- Agent $10,000 (based on 2% commission)
- Advertising and marketing $2,000 – $5,000
- Auctioneer $500
- Solicitor (or conveyancer) $1000
- Mortgage discharge $500
- Minimal pre-sale improvements (including cleaning, gardening, repairs) $2,000
- Moving $1000
- Total: $20,000
Although there are some ways to trim that budget, it is definitely a case of proceeding with caution.
How To Save Money When You Sell Your Home – Choosing An Agent
When it comes to choosing an agent who deserves that handsome commission, we recommend talking to friends and family who have sold recently and consider their experiences about their chosen real estate agents. Make sure you look for one who can show you fantastic recent sales results and answer the important questions you have about how they plan to sell your property. Sometimes the commission can be negotiated down, but can this can backfire as it may leave the agent disgruntled and less enthusiastic about getting you that great sales result.
Marketing expenses can often be trimmed so be sure to talk to your agent about why they want the specific marketing strategy they are proposing – and how it will work for your property. Often, expensive marketing campaigns – especially print campaigns in local papers – are more about marketing their own real estate business rather than selling your home. So be careful.
In today’s increasingly digital world, an overwhelming percentage of home-buyers begin their house hunting online, and, unless the words and images they find there are compelling, they won’t even bother coming to see the house in person. Make sure your agent explains their digital marketing strategy – and that you are impressed by it. It really is the foundation for a successful property sale.
Solicitor and conveyancing fees can vary, depending on who you ask, but when it comes to the legalities of looking after one of your most valuable assets, it’s important to know it is being handled by experienced professionals – and that might mean paying more.
How much you allocate to pre-sale repairs and tidying is up to you, ultimately, but a good real estate agent should be able to give you some general ideas and advice on how to present your property in the best light. Over-spending on any major renovation work is never recommended but presenting a property that is clean and tidy is always the right choice. If that means your budget goes on getting rid of weeds, garden rubbish and dead trees, as well as professional cleaning and carpet steam-cleaning inside and maybe some touch-up painting, it is well worth it to help attract the right buyers. The only exception is if your house is aimed at the ‘knock down and rebuild’ market.
A relationship with a trusted professional mortgage broker is always a positive thing for anyone with a mortgage. Knowing what fees you might incur in relation to moving on from your mortgage thanks to a house sale is important and they can help you do a proper assessment of your home-selling budget. And with that sorted, happily, hopefully you can plan your next property loan as you prepare to move on to even greener pastures.
For advice about what selling your home means for your mortgage – and how to prepare for your next finance application – talk to our Lending Specialists today on 03 8805 1800.