Costs to consider when selling your home
Selling a home involves more than just listing it on the market; there are many steps in the process which come with financial implications.
Whether you are relocating, upgrading, or downsizing, having a clear understanding of selling costs can help you plan better and make informed decisions.
Read on to find out what key costs you need to consider.
Preparing your house for sale
- Repairs and renovations
While it’s not essential to do any renovation to the property, in our experience, generally, a well-maintained property will attract higher offers. Consider making some quick and easy, low-cost renovations to add value to the property.
Common updates include fresh paint, landscaping, and fixing plumbing issues.
- Building and pest inspections
Pre-sale inspections are increasingly common as they help identify any issues that could deter buyers. While building and pest inspections may incur upfront costs, they can also provide valuable insights into necessary repairs and maintenance. This transparency can also help buyers feel more comfortable with their purchase, potentially improving the sale price.
Legal and admin costs
- Conveyancing and legal Fees
Engaging a conveyancer or a property lawyer is essential to navigate the legal aspects of selling a home. Conveyancers help with the legal paperwork, such as preparing the vendor’s statement and contract of sale. As well as ensuring the transfer of property goes smoothly, they will also reduce the risk of potential legal issues. Fees for these services can vary, and it’s worth doing a bit of homework to find a good one.
- Home loan fees
If you have an outstanding mortgage on your home, you will need to consider any fees associated with paying off their home loan early. Some lenders impose break fees or discharge fees, which can affect the overall profit from the sale. Speak to your lender before listing the property to understand what the possible financial implications are for you.
Marketing and selling
- Marketing the property
To attract potential buyers, effective marketing is essential. Additional marketing expenses include professional photography, staging, online listings, signage, and advertisements in print and digital media. Drone footage and virtual tours are also becoming increasingly popular in the marketing toolkit.
Marketing costs can vary significantly based on the marketing strategy, but smart investments in advertising can lead to a quicker sale at a better price.
- Real Estate agent fees
It is possible to sell your home yourself, however you’ll largely have to drive the sales and negotiating process yourself. And this can be very time consuming, as well as stressful.
While we are biased, we believe using an experienced agent, who knows what the market is dictating and is a skilled negotiator, is key to getting the best price. Agents structure their fees in different ways. For instance, a salesperson maybe on paid wage with a percentage bonus for selling your property, or they may be on commission only.
We believe fees and contracts should be discussed openly and honestly – that way there is no misunderstanding, and everyone knows exactly what to expect should circumstances unexpectedly change.
Read our blog on what to consider when selecting an agent, and get in touch if you want to know more.
- Auctioneer fees
Not every property is right for auction. If this is a route you do decide to go down, you will need to factor in paying for a licenced auctioneer. Craig Andriessen, Director of Andriessen Property, is a licensed auctioneer and can talk you through the pros and cons of selling at auction, and advise whether this type of sale could attract a better price for your property.
Disconnection fees
Your energy and internet provider may charge disconnection and reconnection fees when you move. Speak to your providers to find out if there are any costs involved and also whether they need notifying within a certain time frame.
Moving to your new home
Whether they are moving a short distance in Newcastle or heading interstate, around half of home sellers use professional removalists. Removal costs vary depending on what your requirements are. For instance, do you want them to pack the whole house for you, or are you going to do all the packing yourself, so all they have to do is load up boxes and furniture?
Generally, the further a company has to transport your belongings, the higher the cost will be.
Make sure you get three quotes, and consider paying insurance should anything get broken in the move.
If you’re thinking of selling, or would just like to know what your house could get in today’s market, contact us for a free, independent and non-obligatory quote. Our experienced team will also suggest quick and cost effective upgrades to consider making so you can get the best price for your property.
We’d love to see you in our Cardiff office or you can give us a call on 02 4954 8833. Or send us an email to: mail@apnewcastle.com.au.
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