Cost of Selling a House in Sydney

Selling a house in Sydney can be pricey if you don't know what is involved. Many property sellers have no idea how much they need for their homes to sell. The most known cost will be the cost associated with a real estate agent's fee to sell a house, but this is only one of many costs of selling a property. There are many other costs you need to consider that will arise during the sale, from the cost of preparing the home up to the cost of moving. This guide will take you through all the costs of selling your home in Sydney.

Preparing the house for sale - Maintenance & upgrading cost

Ensuring your home is in the best possible condition before selling it is crucial. This means maintaining the house by fixing the things that need to be fixed and renovating the things that need upgrading to improve the overall house presentation.

This preparation stage can become a very costly exercise if you don't have knowledge of what the things buyers look for in a house. You don't want to overcapitalise and put in more money than necessary. Choosing the right real estate agent can help you by giving you the right advice, avoiding unnecessary costs and even helping you arrange the tradies, making the entire process much easier.

Cost: varies from hundreds to tens of thousands, depending on how much maintenance or renovation is needed.

Tips: Always consult an experienced real estate agent before doing the work to avoid overcapitalise.

Conveyancer/solicitor fees

When selling a home, there are legal costs associated with the transaction. To sell a property in Sydney, you need to engage a conveyancer or solicitor in New South Wales to prepare the legal document called a contract of sales and to legally transfer ownership of the home from the seller to the buyer when the property has been sold.

Cost: In Sydney, a conveyancer or solicitor typically costs around $800 - $2000 to do conveyancing. This cost can be higher if you also purchase your next property.

Tips: Always negotiate the fees if you also need to purchase another property and want to use the same conveyancer or solicitor for the purchase.

Real estate agent fee or commission

A real estate agent's task is to find you the best buyer that willing to pay the most for your home. You paid a real estate agent for their service selling your home, commonly called a commission fee, and it is generally paid at the settlement. Even though the commission you pay the agent is the largest part of the selling price, it shouldn't be the main reason you choose an agent to work with. You are always better off by selecting an agent who knows the market well and has extensive experience in the industry.

When selling a house, there are several ways an agent charges for their service. The agent's commission usually is a percentage of the selling price and can also be a flat fee or based on a tiered commission structure.

Cost: A real estate agent in Sydney typically charges a commission between 1.0%- 3.0% of the selling price.

Tips: You usually pay the real estate agent only when the sales happen and at settlement, meaning if the buyer is not found or you are not satisfied with the price offered, you don't pay a real estate agent their commission.

Marketing or advertising cost

Marketing cost is the cost of going to the open market to reach potential buyers. Usually, a real estate agent charges this cost separate from their commission. Effective marketing for a property typically comprises both digital and print media.

Examples of digital media will be:

• Online listing on real estate portals in Australia: mainly on realestate.com.au and Domain.com.au

• Professional photography

• Social media marketing

• Email marketing to a buyer database

• Digital brochure

Examples of print media will be:

• For sale sign

• Advertisement in local newspaper or magazine

• Open home pointer sign

• Copywriting of the ads

• Print brochure for buyers with property information

The right agent working with you can provide professional advice on what marketing campaigns will best suit you based on your specific property, the local market and target buyers.

Cost: Typically marketing campaign in Sydney can vary from around $2,000 to $10,000, depending on the property type, location, method of selling and how much marketing reach you want.

Tips: Most real estate agents only charge you what you used on the campaign. Be aware, however, that there are agents who will overcharge the marketing on you to make a profit. Remember, unlike agent commission, if you don't sell your property, you still need to pay the marketing cost as the agent has already spent it.

Property styling or staging or interior designer cost

Property styling or staging is used when you need to boost your property presentation by working with a stylist or interior designer. They will have your property decorated using hired furniture to impress any prospective buyer during the inspection. Having your house staged can increase the sale price of your property and the likelihood that the property will attract a buyer to buy.

Cost: The typical cost of property styling or staging in Sydney will be around $2,500 to $10,000, depending on how much furniture is needed, the size of the property, the logistics required or how many of the rooms will be staged.

Tips: a good real estate agent can always recommend to you who they usually use for property stylish or staging.

Mortgage discharge fees

You'll have to pay your lender a discharge or early exit fee if the present home you're selling has a mortgage.

Cost: Although the cost for this service varies from lender to loan, in NSW, early withdrawal and discharge of mortgage fees typically range between $150 and $1,500.

Capital Gain Tax (CGT)

The Australian Taxation Office (ATO) is in charge of collecting Capital Gains Taxes. Capital Gains Tax is the tax you are liable for if you garnered a profit from the value of your property investment increases in value between the time you purchase it and the time you sell it. If you're selling an investment property that you don't live in, you have to pay CGT. When selling a home, the amount of CGT you'll owe is determined by your profit margin and the expenses you incurred while owning the home.

Cost: To learn more and assist you in determining the potential CGT liability associated with the sale of your investment property

https://www.ato.gov.au/individuals/capital-gains-tax/calculating-your-cgt/.

Tips: For Australians who have owned an asset for a year or more, there is a 50% discount on capital gains tax (CGT). As a result, you'll only be taxed on half of the asset's nett capital gain.

Moving cost

When you move, you will be responsible for transporting your furniture and boxes from your old home to your new one. Most of the time, you will need assistance and will have to pay for someone to help you. Seller often overlooks this cost. Moving expenses are generally either fixed or hourly and depend on the travel distance and how much furniture needs to be moved.

Cost: Typically budget around $500 to $3500 for your moving cost.

Tips: Always book a removalist as early as possible once you know your settlement date.

Make your selling easy

To get the right advice on preparing the sale of your house in Sydney, connect with Irving Gunawan your Sydney's experienced real estate agent to discuss your home sale, please fill out the contact information or reach out to Irving at 0468 956 677.

Irving Gunawan

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Hi, I'm Irving Gunawan your professional real estate agent. if you want to know the value of your home, you can start with a free property appraisal. If you are thinking of selling your property, let me show you how to make your property selling easy.