Selling your home can be a costly venture so it’s important to consider potential outgoings to ensure any spending will translate to a return in investment when it comes to auction day or attracting the best offers.
From agent fees to marketing, solicitors’ fees, building reports, property styling, and conveyance or stamp duty (if you buy a new home), there are costs when it comes to transacting property.
MARQ Property Licensed Agent Matt Harmer said establishing a relationship with a knowledgeable and trustworthy agent early is critical to the success of your sales campaign.
“Selling a home is a financial commitment and we all want to make sure we’re doing it right from the very first step we take, so get the right advice from the outset,” Matt said.
Here’s what you can expect to pay if you’re looking to sell your home:
Agent fees and commission: Negotiated privately with the agent
Real estate agents work on commission and manage the entire sales process with a focus on attracting the greatest number of interested buyers and the highest price.
Matt said an experienced, approachable and efficient agent was worth their weight in gold.
“The first thing potential vendors should be doing is looking for an agent that is experienced – and pick your preferred agent before event looking at what they charge,” he said. “At the end of the day, the cheapest agent could well be the one who is going to cost you the most.
“Work out who has runs on the board. Try to talk to someone who has worked in different marketplaces who is able to handle different conditions.”
Agents are paid a commission after the successful sale of a property, and the rate of commission can vary from agent to agent so it’s worthwhile negotiating this before signing.
Conveyancing and legal fees: $1500 to $3000
Selling a property is a legal process and requires an expert to navigate what can sometimes be a complicated process. Engaging a conveyancer or solicitor helps to ensure the process runs smoothly.
As part of the sales process and settlement, you will also need to fund building and pest inspections, as well as an energy efficiency rating (EER) report.
If you plan to buy a new house after selling, you will also have to pay conveyance duty, commonly known as stamp duty. The rates vary depending on when you make the purchase and the sale price, so check ACT Revenue online for the most up-to-date information.
“Do your due diligence, particularly if you’re thinking of upsizing. Make sure you get the right advice early. Ask yourself: do we have to sell our home in order to purchase? Or can we do we purchase and then sell? Or is it possible to bridge loans so we can hold the two properties at once? Are we better getting out of the market and renting short term so we’re not compromising the purchase of a new home?”
Stylist to stage your home: $1500 to $5000
You will want to do everything you can to attract the best possible sales price, so if your budget allows, investigate the value-add of having an expert stage your home.
“To stage a home for sale in Canberra, you’re looking at $3500 to $4500 – and it is money well spent,” Matt said.
Investing in professionally styling a property can be a wise move that can add between 5% and 10% to the final sales price.
Photography, promotion and digital marketing: $500 to $5000
You will want your home to shine through attractive photos, video and a smart digital marketing, so having a professional help to present your home in the best light will likely pay dividends.
Customised marketing and promotion of your home will help it reach the greatest number of interested buyers and give the best chance of achieving a great sale price.
Digital marketing is one of the most powerful tools to attract buyers to your home and can also be targeted to a specific area or buyer demographic.
Renovation and cosmetic repairs: Varies depending on property
Attending to maintenance before you list your property for sale means your it will be at its best when you take it to market.
“Even if you’re 12 months off selling, establish a relationship with an agent and they can advise you of what they think are the best steps forward for the property and what may need to be done,” Matt said.
“Cost has got to equal value. Give yourself plenty of lead-in time to make sure that the dollars that you are spending, you will benefit from when it does come time to sell.
“If time permits, speak to an agent a good couple of months before you’re ready to go to market because there may be things that the property and sale would benefit from – whether it’s getting things fixed or getting a stylist in early to see how the home is going to present at its absolute best so we can get maximum eyes on the home.”