The cost of selling a property isn’t cheap, especially with the unexpected expenses that go along with it. That’s why we’ve created our handy Property Selling Cost Calculator.
This calculator is a great tool to make sure you’ve covered all the costs of selling a property. It provides a total estimated property selling cost based on a summary of inputted costs and fees, helping you figure out the real cost of selling your property.
While those who are inexperienced with selling properties may believe the sales process is straightforward, it can be far from it; there could be many associated extra costs and unexpected fees like real estate, lender, and other costs and fees that come along with selling a property.
These associated costs and fees can vary between different:
Most sellers seek help from a real estate agent to sell their property. After determining the property’s sale price, agent costs are generally split into commission, advertising costs, auction costs (if applicable), and Goods and Services Tax (GST).
The real estate agent will suggest the property’s sale price, and although the seller may request a certain price, it is dependent on a variety of factors:
Real estate agent fees can be charged as a fixed commission rate or a tiered commission rate, depending on the preference of the business and type of service offered. This rate is agreed upon before the sale and may or may not include GST.
Commission rates differ between states, local markets, real estate agents, and companies, with some new companies offering flat fees, and others charging more or less than the average rate. The following table provides examples of the difference in national average real estate agent commissions for each state.
|State||National Average||$500,000 property||$1,000,000 property|
|Western Australia (Perth)||2.44%||$12,200||$24,400|
|South Australia (Adelaide)||2.06%||$10,300||$20,600|
Source: whichrealestateagent.com.au (2016)
Agent advertising costs will depend on the agent, company, the type of marketing campaign and advertising required (digital and traditional/printed materials), local advertising costs, and whether or not you’re selling via auction.
According to realestate.com.au in 2016, average advertising and marketing campaign costs in the Melbourne housing market range between $6,500 and $8,000, while Sydney’s average can range between $4,500 and $10,000 – although, without print advertising, this price could decrease substantially.
Costs covered by the vendor can include:
If you believe the property will receive a better return on auction than direct selling, this option may include auctioneer fees. According to openagent.com.au in 2018, auctioneer fees can reach up to $1,000. However, you can usually expect to pay between $200 and $625. Some agents may include a free auctioneer service, which may come out of the agent’s commission fees.
Selling a property via auction may also require marketing services to promote the event and attract enough potential buyers. Openagent.com.au also suggests that marketing costs will range between $6,000 and $9,000 for selling a $700,000 house via auction. These costs may include:
Paying off your lender’s loan earlier than expected can be one outcome of selling your property. While this may seem like a good thing, it is best to check with your lender for conditions, as it may induce fees like:
When selling your property there can be a variety of miscellaneous costs. Take a look below for some examples of these costs:
If you wish to sell your property after using the Property Selling Cost Calculator, it’s recommended you consult with a real estate agent, financial planner, or financial institution about your specific circumstances.
So, what’s next after calculating the costs of selling your property and putting it on the market? If you’re looking for an upgrade in your next home or investment property, you can easily compare home loans in minutes from a large range of lenders on Compare the Market.
We also have a range of handy calculators that can crunch the numbers for your other needs. From calculating home loan repayments to accounting for stamp duty costs in your next property purchase, here are a variety of helpful tools to maximise your household budget: