Expenses to Consider When Selling a Property
Expenses to Consider When Selling a Property
Most people who sell a property — especially if it’s their first time doing so — are surprised (and frustrated) at how complicated it can be. Expenses (expected and unexpected) are a big part of that — and there are numerous costs throughout the process. These include real estate agent fees, legal expenses, marketing costs, and property preparation. Understanding and anticipating these expenses beforehand can help ensure a smooth and well-prepared road ahead.
Real estate agent fees.
One of the largest expenses when selling a property is the fee paid to a real estate agent. This doesn’t come out of your packet beforehand, but typically ranges from 1.5% to 3% of the sale price. While it is possible to sell a property independently, working with an experienced agent has a huge range of benefits:
- Market knowledge — access to local market trends, pricing, and suburb insights to help sellers set a realistic, informed, strong selling price.
- Stress reduction — handles paperwork, home opens, and coordination of transactions and manages all aspects of the process, reducing hassle for sellers (that’s a big one!).
- Legal & contract expertise — ensures compliance with contracts and legal requirements.
- Access to professional networks — connections with mortgage brokers, inspectors, and lawyers, if you need them.
- Professional negotiation — skilled at securing the best deal for sellers.
- Marketing & advertising — professional listings, photos, platforms, and strategies to attract interest.
- Wider exposure — access to online platforms and private networks to reach more genuinely interested buyers.
So, an agent does more than stick a “For Sale” sign out the front. Your fee goes to knowledge, networks, and convenience, and agents can add significant value to the sale process.
Conveyancing & legal costs.
To ensure the legal aspects of the property transaction are handled correctly, sellers should engage a conveyancer or solicitor (something a good real estate agent will help you do).
Conveyancing is the process of transferring legal ownership of a property from the seller to the buyer, ensuring all contract conditions are met before settlement. These services typically range from $1,000 to $2,500, with experienced professionals helping to facilitate a smooth transaction and addressing any legal issues that may arise.
Marketing expenses.
Again, this comes back to working with a good agent! Marketing plays a crucial role in attracting potential buyers, and these costs are required upfront. The cost of advertising a property can vary significantly based on the chosen strategy and the level of exposure desired — something your agent will discuss with you. Online listings are particularly essential (and pricey), as property search websites are often where most buyer inquiries originate.
Marketing expenses generally range from $2,000 to $6,000, but high-end listings may require additional services such as virtual tours, drone footage, or premium online listings. On the other hand, if the seller market is strong and you have a favourable property in a desirable suburb, you may require very little marketing at all.
Property preparation & repairs.
Before listing a property for sale, it’s a good idea to invest in preparing the home to maximise its appeal. This may include minor repairs, painting, landscaping, and general maintenance. In some cases, sellers may need to address defects identified in a building inspection before proceeding with the sale.
Additionally, it is considered best practice to obtain an electrical safety certificate before settlement. This ensures that smoke alarms and residual current devices (RCDs) are compliant and functioning correctly. If upgrades are required, particularly for older electrical systems, the costs can be significant.
Staging & property styling.
Presenting a home in the best possible light can make a big difference in attracting buyers. In many cases, working with existing furniture and making small cosmetic improvements can be enough to achieve a strong sale price. However, property styling or staging, where professional furniture and decor are rented to enhance the appeal of the home, is another option some sellers choose. This is particularly beneficial for empty properties that lack warmth.
Costs vary depending on the size of the house and style of staging. For example, staging a spacious four-bedroom character home in Fremantle will obviously be more expensive than staging a two-bedroom apartment in Cockburn.
Thinking of selling? Think about Ascent Property Co.
Selling a property involves a range of expenses that go beyond just agent commissions. Being aware of these costs in advance can help you budget effectively and maximise your return. If you're thinking of selling, Ascent Property Co can guide you through process, ensuring a seamless and hassle-free sale experience. Reach out to learn more.
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