What are the costs involved in selling a home?
Putting your property on the market can be an exciting time. But while you might be looking forward to the title changing hands and that lump sum arriving in your bank account, it can be easy to forget all the other steps involved, not to mention the costs.
Some costs are unavoidable, such as real estate agent fees, conveyancer fees, and the cost of marketing your property to potential buyers. But there are plenty of voluntary costs sellers take on in the hope they’ll be able to bump up the sales price. We run through a few below.
Agent’s commission
Real estate agent fees can take the form of either a flat fee or a commission. If you’re paying a flat fee, you and the agent will agree on a fixed amount beforehand and this will be paid regardless of how much the property sells for.
A commission on the other hand is a percentage of the final sale price, usually between 1 and 3 per cent. To use an example, if an agent sells a property for $700,000 and the commission is 2 per cent, you can expect to pay $14,000.
A tiered commission can also be used. Under this arrangement, a vendor agrees to pay an agent a higher percentage on amounts above the agreed reserve, incentivising them to work for the best possible sale price.
Conveyancer’s fees
A licensed conveyancer or solicitor will be required to transfer the legal title of land from you to the new owner. Their services can cost you anywhere from $1,000 to $2,000, so it’s a good idea to get a few quotes in advance before you make your decision.
Marketing costs
A standard marketing campaign will usually involve signage, newspaper advertising and an online listing. But if your budget allows it you can go much further, such as by hiring a professional photographer, printing flyers, and getting a floor plan produced.
Ultimately, the size of your marketing campaign will come down to how much money you’re willing to spend, but you can usually expect to pay between 0.5 and 1 per cent of the property’s value. That means if your home is valued at $700,000, the cost will be between $3,500 and $7,000.
Mortgage discharge fees
This one applies if you’ve still got a mortgage on your home. Before you can sell, you’ll need to complete a discharge form and submit it to your lender. It can take up to three weeks for this to be processed, so make sure you don’t leave it till the last minute.
If you have a fixed rate loan, terminating it comes at a significant cost to your lender, so you can expect break fees to be in the thousands of dollars. This will usually be added to the amount your lender receives from the sale.
Home staging
Nowadays, many sellers will hire a home staging service to help entice potential buyers. This involves bringing in furniture and homeware to improve the look and feel of the property, and it’s known to boost sale prices by up to 10%. The cost will vary depending on the service and the size of your home, but we can ballpark it at around $2,000 for a six week display.
Pre-sale cleaning and repairs
When selling a home, it helps to view it from the eyes of a potential buyer. Would you be impressed by what it has to offer, or are there bits and pieces that aren’t up to scratch? If you feel like some rooms could use some touching up, taking the time to do so could help increase the appeal of your home.
This might involve giving the walls a fresh coat of paint, repairing any faulty cupboards, or just making sure all the rooms are clean and presentable. While you might be able to do these yourself, it’s a good bet to hire a professional so you can be sure you’ll get the best possible results.
Auction fees
If you plan to sell via auction, you’ll also have to hire an auctioneer. Sometimes this cost is included in the real estate agent’s fees, so make sure to confirm with them if that’s the case. Otherwise you can generally expect to pay around $600 for an auctioneer’s services.
For more information, be sure to browse our tips for selling your home. And if you’re in the market for a home loan, visit our home loan comparison page, or check out the selection below.
Home loan comparisons on Mozo - rates updated daily
Smart Booster Home Loan
1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR
interest rate
comparison rate
Initial monthly repayment
1.99% p.a.variable for 12 months and then 2.48% p.a. variable2.47% p.a.Smart Booster Home Loan
A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends). 20% minimum deposit required. Winner of two Mozo Expert's Choice Award for 2021.
- interest rate
- 1.99% p.a.variable for 12 months and then 2.48% p.a. variable
- comparison rate
- 2.47% p.a.
- Upfront fees
- $520
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- Optional - with 0.10% additional interest
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $50,000
- maximum borrowing amount
- $1,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Smart Booster Home Loan
UHomeLoan
Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
1.75% p.a.
fixed 3 years2.22% p.a.UHomeLoan
$0 fees and easy application. Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.
- interest rate
- 1.75% p.a.
fixed 3 years
- comparison rate
- 2.22% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free up to $20,000 p.a.
- Redraw facility
- no
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $100,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- $395 Establishment fee waived for fixed rate loans that settle by 30 September 2022. Receive 1.75% 3 year fixed rate when you apply by 29 April 2021 and settle within 90 days.
Read our Mozo Review to learn more about the UHomeLoan
Basic Home Loan
Fixed, Owner Occupier, Principal & Interest, LVR<70%
interest rate
comparison rate
Initial monthly repayment
2.09% p.a.
fixed 3 years2.43% p.a.Basic Home Loan
Get a flexible loan structure with up to six loan accounts with different rate types. Make free extra repayments. Enjoy free redraw facility. No upfront or ongoing fees. Option to earn Qantas points.
- interest rate
- 2.09% p.a.
fixed 3 years
- comparison rate
- 2.43% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $400.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 70.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- $750,000
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Basic Home Loan
Celebrate Variable Home Loan
<60% LVR, Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
2.19% p.a. variable2.19% p.a.Celebrate Variable Home Loan
Fast and efficient online application. Automatic discounts as loan is paid off. Free extra repayments and redraw facility. Zero fees to consider. Min 40% deposit required. Winner of three Mozo Expert's Choice Award for 2021.
- interest rate
- 2.19% p.a. variable
- comparison rate
- 2.19% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- $100,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Celebrate Variable Home Loan
Fixed Home Loan
Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
1.89% p.a.
fixed 2 years2.15% p.a.Fixed Home Loan
Award-winning low rate home loan that could save you thousands. No application or ongoing fees, fee-free redraws, unlimited additional repayments and an optional offset account for $10/month. Minimum 10% deposit. Winner of Mozo’s Experts Choice Award for Online Home Lender of the Year 2021.^
- interest rate
- 1.89% p.a.
fixed 2 years
- comparison rate
- 2.15% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $325.00
- Extra repayments
- yes - free, up to $20,000 p.a.
- Redraw facility
- yes - free
- Offset account
- Optional - $10 per month
- Maximum loan to value ratio
- 90.00%
- minimum borrowing amount
- $50,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Fixed Home Loan
^See information about the Mozo Experts Choice Home Loans Awards
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