PHOTO: Real Estate Agents. FILE
Agent’s commission
While you only pay commission on the successful sale of a property, the agent’s commission rate will need to be negotiated during the interview process.
Generally, commissions range between 1 to 2.8 percent, but often different agencies will have different commission structures. It’s widely understood that these rates can be negotiated.
“Agent’s fees will be somewhere between 1.8 and 2.2 percent including GST, depending on where you’re located,” says agent Nicholas Charles of PPD Real Estate in Sydney.
When the market is hot or you have a property in a prime location, these can be used to your advantage in negotiations. You can also use the commission rate you’re willing to pay to incentivise your agent further to aim for a particular price bracket.
However, finding the agent with the cheapest rate isn’t always the best move – their results are king.
Marketing costs
The most powerful weapon in your arsenal will be your marketing. It’s how you attract potential buyers to your home, which ultimately converts to a sale.
An agent will provide a marketing strategy or schedule to you outlining individual costings for different materials and services. These usually include professional photography, videography, floor plans, a signboard, advertising copy and premium online advertising packages on sites like Domain.
Additional services like drone photography and videography are a good idea for properties with views, near coastline or on large land lots, but you can discuss what marketing mix will work best for your property and demographic with your agent.
In terms of cost, it ranges depending on your property and how much you want to include in your package, but they generally range from $4,000 to $10,000.
“Marketing will cost you an average of $7,000,” confirms Charles.
Legal and other fees
If you’re going to auction, you’ll need to enlist the services of an experienced auctioneer. This cost can range between $500 to $1,000.
You’ll also need a conveyancer/solicitor to prepare the contract settle, deal with a potential buyer’s legal representative, and then to finalise settlement. Fees range between $1,000 and $2,000.
If there is a mortgage on the home you’re selling, you’ll need to pay a mortgage discharge fee, which can range between $300 and $1000 depending on your lender.
Finally, sellers will also need to pay Capital Gains Tax, however this varies depending on your specific property and how long you’ve owned the asset.
Summary of costs
Please note, all costs are approximate.
General maintenance and cleaning: varies based on property
Staging and professional styling: $2,500 – $6,000 depending on property size
Movers: $400 to $2,000 depending on amount of furniture and distance covered
Marketing, photography and videography: $4,000 – $10,000
Agent’s commission: 1 – 2.8 percent including GST, but this will vary across the country
Auctioneer: $500 – $1,000
Conveyancer fees: $1,000 – $2,000
Mortgage discharge fee: $300 – $1,000 depending on lender
Capital Gains Tax – varies depending on property
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