What costs should I consider when selling a property?

The selling fee or commission isn't necessarily the only cost involved in selling a property.

Understanding the potential costs before you begin can make it easier to compare different selling options and decide where spending money may or may not add value.

Agent fees or selling costs

Depending on how you choose to sell, you may pay an agent commission, fixed fee or another agreed selling fee.

The amount and structure can vary, so understand what is included in the service you're considering.

As a simple illustration, 2% of an $800,000 sale is $16,000, before GST or any additional charges. This is arithmetic only, not an average commission, and there is no single standard rate. Before signing, it's worth understanding how the fee is calculated, when it's payable and exactly what's included.

Marketing

Marketing costs may include professional photography, online property advertising, floor plans, signage, copywriting, print material or other promotional activity.

Ask which elements are being recommended for your property and what they will cost. Spending more doesn't guarantee a better result, so it helps to ask what each expense is designed to achieve and whether it suits the property and its likely buyers.

SA.GOV.AU notes that sellers using an agent may be charged upfront advertising costs and recommends asking about those costs as part of the selling process.

Property preparation

Some sellers choose to spend money preparing the property before sale.

This might include cleaning, gardening, minor repairs, painting, styling or other presentation work.

Not every property requires extensive preparation. Consider the likely benefit before committing to significant expenditure. Thoughtful, well-chosen preparation often goes further than extensive improvements, and our guide to what to do before selling covers this in more detail.

Conveyancing and professional costs

A conveyancer or solicitor may be involved in the legal and settlement aspects of the sale.

Depending on the property and your circumstances, other professional services may also be required.

Other possible costs

Depending on your circumstances and property, there may also be costs associated with moving, loan discharge, strata or body corporate matters, certificates or searches, settlement adjustments and other requirements.

Tax implications can also arise in some circumstances and are appropriately discussed with a qualified tax professional.

Can professional fees be reduced?

In many cases there are options. You can compare and negotiate traditional service packages, or consider whether a guided arrangement suits you, where you take on agreed parts of the process with professional guidance alongside you. Our guide to selling yourself or using an agent looks at the choices in more detail.

Clarity offers two fixed-fee options for sellers. The Guided Pathway ($2,500) suits sellers comfortable carrying out agreed activities themselves, with professional guidance at each key decision. With Full Support ($5,500), I manage the sale as your selling agent for a fixed fee rather than commission. Marketing costs are separate and paid directly by you.

Look at the overall picture

A lower headline selling fee doesn't automatically mean the lowest overall cost, just as spending more doesn't automatically produce a better result.

The useful comparison is the whole selling proposition: the service being provided, likely expenses, level of support and what matters to you. Two good questions to ask any provider are “What does it cost?” and “What am I receiving, and is it right for me?”

Useful resource: SA.GOV.AU — Selling your home.