When people think about selling a home, they often focus on the sale price. What’s less talked about is the difference between that headline figure and what you actually receive at settlement.
Agent fees, marketing, legal costs and other expenses all come out along the way, and they can add up if you’re not prepared. Below is a breakdown of the main costs involved in selling a home.
Agent fees
For most sellers, the largest cost is the real estate agent’s fee. Agent commissions are not set by law and are negotiable.
Fees can be structured in a few different ways, including:
- A percentage of the sale price
- A fixed fee
- In some cases, a performance-based bonus.
The most common approach is a percentage-based commission, typically between 1.5 and 3.5 per cent, which is calculated on the final sale price and paid at settlement.
The fee is agreed before the property is listed and will depend on factors such as the property, the local market, and the level of service provided.
While cost is an important consideration, sellers should also consider the agent’s local knowledge, marketing approach, and negotiation experience when choosing who to work with.
Marketing costs
Marketing costs are usually separate from the agent’s fee and are often paid upfront.
Costs can range from $1,000 to $10,000, depending on the size and duration of the campaign and the level of exposure you want for your property. Some sellers spend a modest amount on basic exposure, while others invest more to reach a larger pool of buyers.
Marketing costs may include:
- Professional photography and video
- Floorplans and copywriting
- Online listings on property portals such as reiwa.com
- Signboards
- Digital or print advertising
Your REIWA agent should explain what is included in the proposed marketing package and how each element is intended to attract buyer interest.
Settlement agent or conveyancing fees
Most sellers engage a settlement agent or conveyancer to manage the legal transfer of the property to the buyer. This includes preparing and lodging documents, liaising with the buyer’s representative and lender, and coordinating settlement.
Fees typically range from $800 to $2,000, depending on the complexity of the sale and the services provided. It’s a good idea to obtain quotes upfront so you understand what’s included.
Lender fees
If there is a mortgage on the property, the lender will usually charge a fee to discharge the loan once the property is sold. This covers the cost of finalising the loan and releasing the lender’s interest in the property.
These fees typically range from $150 to $500. If your loan is on a fixed rate, additional break costs may apply, which can add up. It’s important to check with your lender early so you understand the full cost before settlement.
Property preparation costs
Many sellers choose to spend money preparing their home for sale. The aim is usually to improve presentation and appeal to buyers, but not every property will need the same level of work.
Common preparation costs include:
- Professional cleaning
- Gardening and outdoor tidy-up
- Minor repairs and maintenance
- Painting
- Styling or furniture hire.
Costs vary widely depending on the condition of the property and how much work is done. Before spending, it’s worth discussing with your REIWA agent which improvements are likely to add value and which may not be necessary.
Reports and checks
Some sellers choose to organise building or pest inspections before listing. These reports are not mandatory, but they can help identify issues early and reduce the risk of surprises during negotiations.
Reports typically cost around $500 to $700, depending on the provider.
Auction fees
If a property is sold by auction, there may be an additional auctioneer fee. This covers the cost of running the auction and is separate from the marketing campaign.
Auctioneer fees are typically between $400 and $1,000. In some cases, this cost is included in the agent’s overall fee, so it’s important to confirm this upfront.
Selling costs are not one-size-fits-all. Tools such as REIWA’s Property Selling Cost Calculator can help sellers estimate typical costs and plan ahead before speaking with a REIWA member.
Note: The information above is general in nature and should be used as a guide only. Sellers are encouraged to seek advice specific to their circumstances.
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