If you are thinking of selling your home, it’s a good idea to learn more about how much the process is likely to cost. Selling your home involves quite a few costs and knowing what to expect allows you to set a reasonable budget.
Typically, there are eight significant costs it’s worth budgeting for, although how much you are prepared to undertake before placing your property on the market may influence these costs.
- Renovations and Repairs
It’s best to present your home in the best light possible when putting it on the market. Have a good look around the property and decide how much you can afford to spend on fixing or replacing faulty items or surfaces. Spending $400 on having all the carpets cleaned might be more affordable than replacing the flooring, especially if you want to sell in a hurry. A fresh coat of paint can make a world of difference, along with a garden tidy-up to boost curb appeal. You can either commit to a weekend of cleaning up or consider outsourcing these tasks if your budget allows. Budget anywhere between $500 and $2,000 for a general overhaul.
- Home Staging
If you haven’t heard of professional styling, it can be the difference between a home selling quickly or lingering on the market for weeks. It’s where a home staging company comes in a replaces your furniture and belongings with fresh, modern furniture and styling to give the home broader appeal. The stylist will often remove all personal memorabilia to ensure the home is presented as a stylish, comfortable, and desirable space, allowing prospective buyers the opportunity to imagine themselves living in the home. Depending on the size of your property, whether the property is empty or not, home staging costs can range from $2,500 to $20,000.
A comprehensive marketing campaign can put your home in front of more prospective buyers. As the seller, you are responsible for covering the cost of marketing your property. Your sales agent will recommend a campaign (photography, copywriting, advertising, letterbox drops, online property listings, and social media), and you can decide which is best for you. Marketing costs can be anywhere between $4,000 and $20,000.
- Real Estate Agent Fees
There are two types of agent fees: a flat fee and commission, with some sales agents only work on commission. Either way, the agent fee needs to be agreed on before signing a contract with your sales agent. Talk to several different agents from respected Perth real estate companies before signing with one to ensure your agent has your best interests at heart.
- Auctioneer Fees
If you choose to sell your property by auction, there will be an auctioneer fee. The cost can vary depending on your property, location, and the auctioneer’s experience, but typically, you can expect to pay $500 – $1,000.
- Conveyancer Fees
As when you’re buying a home, you need a conveyancer or settlement agent. They deal with the process of transferring legal ownership of the property. Depending on the property, the circumstances, and the sale’s complexities, the conveyancing cost can vary between $500 to $3000.
- Lender Fees
If you are changing banks or lenders, there will likely be fees involved. Talk to them to get a clear understanding of how much it will cost.
According to the Australian Taxation Office (ATO), when you sell certain property types, you could potentially need to pay Capital Gains Tax (CGT). This can have implications for you, especially if you have investment properties, so speak with the ATO and your accountant when selling your house about your tax obligations.
To learn more about the costs involved in selling your property, speak to your local ACTON Real Estate agent.
Choose ACTON’s team of experts today
Whether you are buying or selling, ACTON is the Perth local area real estate expert you need on your side. ACTON Real Estate has offices strategically located around the Swan River, Perth’s western suburbs, and up and down our coastline from Mandurah to Mindarie.