How Much Does It Cost to Sell a House

Selling a house involves several costs, including real estate agent fees, legal fees, and potential capital gains tax. Additionally, homeowners may incur mortgage discharge fees. Understanding these expenses is crucial for effective budgeting and maximising profits from the sale.

Not sure what costs are involved in selling a house in QLD? Read on for more details.

TL;DR:

• Maximising the sale price is always a key objective when selling a house – and in order to do this, owners also look to minimise sale costs. 
• Between taxes, legal and real estate fees, and aesthetic fixes, the costs can add up quickly. 
• Working with experts like the team at Matthews Real Estate helps owners get the best possible deal for their properties. 

Navigating the Costs of Selling a House

Property ownership has long been considered one of the best ways to create wealth, and while it is generally a wise move for the wallet, there are also various expenses involved in each stage, and incurring certain costs when selling a house could be a nasty surprise, particularly if they were unexpected.

It’s crucial for sellers to understand the costs involved in the selling process – including real estate agent commission, settlement fees, lender fees, advertising costs and a variety of other selling costs – so that they know what to expect once the sale is final.

Understanding the Question: How Much Does It Cost to Sell a House?

There are many factors influencing the cost of selling a house, from the property value, which affects the real estate agent’s commission, to the various professional fees that owners typically pay, whether out of obligation of in the interest of maximising their property’s sale price.

In any property sale, typical expenses include government fees, conveyancing fees, solicitor fees, marketing fees, and, for those selling a house in QLD, stamp duty.

Let’s dive further into the costs involved in selling a house.

Real Estate Agent Fees: A Necessary Investment

Real estate agent fees generally constitute a fair portion of the typical costs owners pay when selling; however, they are also often a worthwhile investment for owners who achieve a higher selling price. The local market knowledge and Real estate agents offer local market

While some real estate agents offer their services for a fixed fee, many work for commission based on the value of the house. This is an incentive for agents to achieve the highest possible selling price for the property, and experienced real estate agents generally offer the assurance of a strong track record.

In some cases, a real estate agent may cover marketing costs and even home staging costs on your behalf, adding to the value of the transaction.

In any case, the most important thing a real estate agent can offer you is clarity and peace of mind throughout the selling process – a view that echoes the position of Trevor Matthews, Principal of Matthews Real Estate.

“Our focus is on providing transparent and competitive fees that truly reflect the value we deliver to our clients,” Mr Matthews said.

Legal Fees: Ensuring a Seamless Transaction

The legal process involved in selling a house in QLD can be complex, but one thing that remains consistent in every sale is the need to do due diligence. This not only protects against potential legal disputes in the future, but also helps to enhance marketability, pricing certainty and the purchase experience overall, speeding up the sale. It’s also worth noting that home buyers are also entitled to a cooling off period after making a purchase, which could lead to further expenses if the deal falls through.

For the average sale of a house in QLD, typical legal fees include conveyancing fees and government fees, as well as any outstanding council rates during the settlement process before transferring ownership. Property type also plays a role in determining the fees payable; for example, buyers purchasing a unit may be required to pay strata fees in addition to other standard expenses.

In terms of the costs to buyers, they must pay stamp duty, also known as transfer duty, when making a purchase.

Financial Considerations: Capital Gains Tax

Generally, this will not apply if your property is your primary residence; however, if the property is an investment, you may be liable to pay capital gains tax on the profit made from the sale.

The amount of CGT can vary significantly depending on various factors such as the length of time you’ve owned the property, capital improvements you have made, and personal tax circumstances.

Managing Your Finances: Mortgage Discharge Fees

Part of the cost of selling a property comes from the lender that gave you a mortgage, as the loan account must be terminated when you sell.

Lenders charge a mortgage discharge fee to cover the cost of undertaking administrative tasks such as preparing and filing documents to remove the mortgage from the property title.

In Queensland, the mortgage discharge fees can vary depending on your lender but typically range from $200 to $400, making them a fairly insignificant additional cost.

In any case, it’s best to factor this into your selling budget to ensure that there are no nasty surprises.

Preparing Your Home: Additional Costs to Consider

First impressions matter, particularly when it comes to attracting the right potential buyers, and that’s where professional home staging comes in handy.

While some sellers may be keen to avoid home staging expenses, there’s no doubt that great home staging can be incredibly valuable in terms of turning buyers’ interest into commitment.

The right presentation will not only attract buyers, but also help to justify a higher sale price by enabling them to envision the lifestyle they could have

Ensuring that the property is at a presentation peak will also set the stage for professional photography, ensuring that owners get maximum value out of any marketing costs they incur.

Hidden Costs: Unexpected Expenses in Selling

The cost of selling a house in QLD can vary depending on a range of factors, including several lesser known key costs that sellers often overlook:

Repair costs

While obvious structural issues or damage should be taken care of before the sale process begins, standard building and pest inspections may raise unexpected issues requiring repair, and this may fall to the owner.

Moving costs

While you’re going through an often-intensive sale process, other costs – such as the cost of moving after selling property – are easy to overlook.

If you’re concerned about the need to cover these expenses in addition to legal fees, conveyancing costs and more, you’ll need a comprehensive financial planning strategy in place.

How to Budget for Selling Your Home

There’s no doubt about it – selling a house in QLD can be stressful given all of the different fees and costs involved. Making a budget is the best way to ensure that all the primary costs of selling are covered, as well as additional potential costs such as auction fees, if you’re considering this alternative.

When creating a selling budget, your broker or real estate agent may be a good help in understanding what you’ll need to pay fees for.

Here are a few additional costs you should budget for when selling a house:

• Legal contract preparation – generally covered by conveyancer fees
• Marketing costs
• Real estate agent commission
• Auctioneer’s fees (should you choose to take your property to auction)

Q&A: Common Questions About Selling Costs

Plan for a Successful Sale With Matthews Real Estate

Planning is crucial to the success of any property sale, from the way sellers target potential buyers to the final deal struck with the financial institution.

If you’re considering selling a house in QLD, no matter what stage of the process you’re at – from selecting a real estate agent to creating online listings on real estate websites – it’s important to note that connecting with the right agent can help you minimise the cost of selling.

The property market can move fast – so when you’re ready to move forward towards your next property goal, reach out to Matthews Real Estate for personalised guidance.