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What will it cost to sell my property?

October 22, 2024

We wish we could just give you a number in one sentence. But, like most things, it depends. House sale costs fall into five different categories:

  1. Real estate agent commission
  2. Marketing costs
  3. Legal and bank fees
  4. Capital Gains Tax
  5. Miscellaneous

1. Real estate agent commission

We have a complete guide to real estate commission that takes you through the ins and outs of the different commission structures and the factors that can impact how much commission you’ll pay.

The short answer is: if you’re using a percentage fee structure (as opposed to a flat fee or incentive structure) the real estate agent commission typically varies from as little as 1% to around 3%.

Most Canberra agencies charge between 2% and 3%, plus GST. The average commission for a real estate agent is around 2.5%, plus GST.

Commission structure options for real estate agents

  • Flat fee: A fixed amount agreed upon between the agent and seller, regardless of the sale price. It gives the seller and agent a known cost, making it easier to budget. While this is a good option for sellers, it may not incentivise the agent to secure a higher price.
  • Percentage fee: The agent earns a percentage of the final sale price, typically ranging from 1.5% to 3.5%. The percentage fee system motivates the agent to maximise the sale price as their commission is directly proportional to the sale amount.
  • Combination fee: This system uses a combination of a percentage fee with a bonus incentive for exceeding a target price. For example: the agent gets a 2% commission on the sale price up to $750,000, then an additional 10% incentive if the price exceeds the threshold. So, if the property sells for $800,000, the commission is $20,000. This encourages agents to achieve top results, while protecting the seller in case a high price is not secured.

Understanding what structure works best when selling your property can mean thousands of extra dollars in your pocket come sale time. 

Auction fees

Other fees that you may need to pay include auction fees. Usually, the agent who is selling your home is not the person running the show on auction day (although some of our auctioneers are also incredible agents). Generally, an ACT auctioneer charges between $500 - $1,000.

Why is a real estate agent necessary?

Some sellers opt to sell their property privately to cut costs by avoiding real estate agent fees. While this approach can save money, it can be quite time-intensive and potentially stressful, particularly if you're unfamiliar with the necessary steps and legalities. For this reason, most people prefer hiring an agent to take advantage of their expertise. Overall, an agent can ensure a smoother, less stressful selling experience.

2. Marketing costs

These days, there’s more to marketing your home than placing an ad in the newspaper. Marketing options are almost endless. They range from traditional print to digital to marketing you don’t even see.

The key to a profitable campaign is knowing which of the options is most likely to hook the right buyer. Your real estate agent will be able to personally tailor a marketing campaign to suit your property, your budget, and the right audience.

Marketing campaigns vary significantly in cost. In Canberra, you can expect them to start at around $2,000-$2,500 for a base-level campaign. At the higher end, you might spend $10,000 or a little more to get the best result.

What does your marketing money buy? 

A campaign may include some or all of the following:

  • Print advertising
  • Real estate portal listings (such as Allhomes.com.au)
  • Social media advertising
  • Print property brochures
  • Digital brochures
  • Signage
  • 2D and 3D floorplans
  • Property videos
  • Drone photography
  • Professional photography
  • Professional copywriting
  • Virtual tours
  • Virtual agents
  • PR/editorial

How to choose the right property marketing for you

How much you spend will depend on the type of property, your target audience and your budget. Bigger isn’t always better. If your advertising strategy isn’t focused on the right people, it doesn’t matter how much exposure it gets.

On the other hand, you don’t want to skimp on marketing and limit your pool of potential buyers.

According to Paul Corazza, Director of Independent Property Group,  it comes down to the demographic that you’re targeting for your property. “We look at who’s likely to buy your property and analyse their buying behaviours,” he says. “If your home is likely to attract first-time home buyers, we concentrate on online advertising and social media targeting. They’re younger, so they’re online. If you’re appealing to downsizers, though, the opposite is true. There, we’ll concentrate more on print advertising.”

There are other considerations as well. If you’re selling a rural spread, for example, you’ll need drone photography to show the land. Drones are also useful for vacant blocks of land, or to highlight an amazing view or great location.

What about prestige properties? Buyers for these properties can afford to be choosy, so you’ll need to pull out all the stops. Again, Paul says, a successful campaign is partly dollar spend, partly smart targeting.

“If we’re selling a high-end prestige property, we might look at Sydney newspapers as well as Canberra, so that we can reach those interstate buyers that might be looking for a professional residence. We’ll also consider which newspapers to advertise in—the Australian Financial Review, for example, is better targeted for those buyers.”

3. Legal and bank fees

Conveyancing

Conveyancing fees are mandatory expenses when selling your home. These legal fees cover the transfer of property ownership from the seller to the buyer. Finalising the sale requires the preparation and processing of several important legal documents. It can be easily overlooked by a non-specialist, like a missing compliance certificate, which can cause major delays and financial penalties at the time of settlement.

You can find all the information you need about conveyancing costs and the conveyancing process.

As a rough guide, the average conveyancing cost can range from as little as $500 to $2000 or a little over.

Some conveyancers charge a sliding fee depending on the cost of the property, but most charge a flat rate.

Essentially, conveyancing costs can be divided into two categories:

  1. The amount that you pay to the solicitor or conveyancer for their time and expertise. This might be a fixed amount, a sliding scale, or a ‘base’ fee with additional charges for extra work on top.
  2. The amounts payable to various authorities for the required searches and due diligence. Your solicitor will pay these for you and then charge the amount back. This should be itemised on your final invoice, usually under a category heading of ‘disbursements’.


Disbursements include:

  • A title search confirms if the property belongs to the person who is selling it, and has no restrictions that would impede the sale
  • Compliance certificate and search fees charged by government authorities
  • Registration of mortgage fee
  • Registration of transfer fee
  • Photocopying

Bank fees

There are some fees and formalities that you may need to complete for your lender when you sell your home. These include:

  • Mortgage discharge fees: 

If you have a mortgage on the property you're selling, make sure you contact your lender about a mortgage discharge fee. You need to pay a mortgage discharge fee (also known as a settlement fee) for closing your home loan, which applies to both fixed and variable loans. 

These lender fees vary depending on factors like your loan amount, fixed term, and specific loan conditions. Mortgage discharge and break fees typically range from $150 to $1,000.

  • Early exit fees:

If you end a fixed home loan before the term expires, you could also face a break fee (also known as an early exit fee). This can vary depending on your loan, but typically ranges from $150 - $600.

  • Loan portability:

If you’re buying another property, you might save on costs by staying with your current lender. Selling your home doesn’t always mean you need to close your mortgage. Many home loans offer the option to transfer your existing mortgage to your new property, a process known as loan portability.

Loan portability can also speed up the process. Instead of applying for a new loan, you simply transfer your current one to your new property, making it a faster and more convenient option. Additionally, it can help you avoid some of the upfront costs associated with closing and reapplying for a home loan.

4. Capital Gains Tax 

When you sell your property, ideally, it will be for a price higher than your original purchase cost plus associated transaction expenses. If this results in a profit, known as a capital gain, it may be subject to Capital Gains Tax (CGT).

This is only relevant if you’re selling a property that is not your primary place of residence. You can be exempt from CGT if your house has not been used to generate income (as a rental or for a business), and if the property is less than 2 acres. 

CGT applies when selling an investment property. Special rules apply for CGT on inherited properties, depending on how the deceased used the property and the time of ownership.

Since calculating CGT can be complex, it’s advisable to seek guidance from a tax adviser to ensure your liability is accurately assessed. You can find more information on the Australia Tax Office website.

5. Miscellaneous

There are a few other expenses that should be kept in mind as you put together your budget. Miscellaneous costs include:

  • Pest and building report: This report identifies structural issues, pest infestations, or damage to the property. Buyers often request this report for peace of mind, and sellers may cover the cost to speed up the sales process. In the ACT, this is a cost that the seller outlays initially, however, the purchaser will reimburse the seller for these costs at settlement.
  • Property maintenance and styling: You can control how much you spend on this, however, your agent will provide some guidance. They’re experts in knowing what investments will pay off.
  • Outstanding council rates and strata fees: You were going to pay these eventually anyway, but it’s worth remembering that these bills will need to be paid on settlement.
  • Moving costs: This includes expenses for hiring professional movers, renting moving trucks, or purchasing packing materials. It’s time to call on your friends and family to help out. Costs vary depending on the distance (with interstate and international moves being the most expensive)
  • Cleaning and renovations: Thorough cleaning ensures the property is presentable for open homes and inspections. This may include professional cleaning services for carpets, windows, or general areas. Updates like painting, minor repairs, or lawn care can enhance the property's appeal and potentially increase its sale price. 

Understanding all the costs involved, as well as what your home might sell for, is an important part of the appraisal process. If you’re after a local expert, drop us a line in the form below and an agent who specialises in your area will be in touch.

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