Are you planning to sell your property in Victoria? While it may be tempting to focus on the profits of a successful sale, it’s important to be aware of the full cost involved. From agent commissions and legal fees to marketing expenses and more, the expenses can quickly pile up. In this blog we will provide you with a breakdown of the real costs of selling a property in Victoria. With our expert insights, you can approach the selling process with confidence and a clear understanding of what to expect.
#1 Agent Fees and Commission
One of the most significant costs associated with selling a property in Victoria is the real estate agent fees. Commission rates can vary between agent, but generally they will charge a flat fee which is taken out of the end sale price. Current Recent research suggest that the average real estate agent commission rate is 2.1% of the sale price. However, these rates can vary from 1.6% – 2.5% for Melbourne, and some regional areas could expect to pay as much as 3.5%.
There is no set commission rate on agent fees, so it’s important you talk to your agent and understand what their fee is before signing a contract. If you decide to sell your home by auction, you can expect to incur an additional $400-$1,000 to cover the cost of the auctioneer for the day. The range usually indicates how much experience an auctioneer has.
#2 Marketing Cost
Many homeowners don’t realise the true cost of marketing a property for sale. First, you will want to invest in some photography or videography to help bring attract more buyers with online listings. Next, you will want your agent to list your home on to websites like realestate.com.au and domain.com.au . This will help your property get exposed to a larger audience in a short amount of time.
Other marketing expenses include signboards and brochures. These activities are important as they help you attract the maximum number of prospective buyers and create competition, which ultimately leads to you achieving the best sale price possible. The cost of marketing activities can vary, but homeowners should expect to pay between 0.5% and 1% of the properties value. Whilst it is up to you which marketing initiatives you prefer, it’s important to factor it in. Some agents charge these fees upfront and some allow you to repay the cost via the settlement of your property.
#3 Conveyancing and Legal Fees
Conveyancing is the legal process that transfers the ownership of your property from you, the seller, to the buyer. It is usually done by a solicitor or licensed conveyancer, and involves the exchange of contracts, payment of the purchase price and registration of the new title at the Land Registry.
The solicitor or conveyancer will then prepare the legal documents and carry out searches to ensure that the property is legally owned by the seller. They will also check that there are no restrictions on the property, and that there are no outstanding charges or debts against the property. Conveyancing fees can range from $880 to $2,000 and will depend on whether you use a conveyancer or a solicitor. These fees are generally paid upon settlement, but some may charge a fee upfront.
#4 Capital Gains Tax
If you’re planning to sell an investment property in Victoria, you may have to pay capital gains tax. This is essentially a tax on the profit you make between buying and selling the property. It’s best to speak to your accountant about this to ensure your fully informed of the potential cost associated.
#5 Moving Cost
Once you have sold your property and are ready to relocate into your new home, it’s time to organise your move. Moving cost can vary depending on your location and size of your home and contents. Firstly, you may want to organise professional movers and they can cost anywhere from several hundreds of dollars to a few thousand dollars.
Next, you will want to organise a packing material such as boxes, tape, bubble wrap and other supplies. Finally, new buyers do prefer to come into a clean home, so be prepared to spend some time cleaning or engage a professional cleaner.
#6 Property Presentation Cost
Pre-sale preparation and enhancements can help you achieve the best sale price possible. It’s important focus on cosmetic enhancements, like flooring, painting, landscaping, and staging. As major structural works are expensive and may cause you to over capitalise.
This is where SellSmart comes in! We help agents and homeowners take the hassle out of preparing for sale. Get all the jobs you need done on one platform, quickly and easily. Talk to your agent about what improvements they believe will yield you the best value for money.
When selling your home, it’s important to be aware of the true cost associated so that you can make informed decisions.
