What are the costs when I sell my home?

Reviewed by Christina Penrose

Are you thinking of selling your home? There's a lot to consider when it comes to navigating the property market, from property values and interest rates to marketing and repairs. Understanding these costs will ensure that you are fully prepared for what’s ahead – and can help ensure you receive the best possible value for your home. In this blog post, we'll walk through key considerations so that you can have an informed understanding of what kind of expenses come with selling your home.

Understand the costs associated with selling a home, including repairs 

Some of the costs of selling your home include title searches, conveyancing, and transfer taxes. Presentation is core to attracting the right buyers and selling your home quickly, and some repairs and renovations can help prepare your home for sale.

If you are selling, you should have a current pool safety certificate and compliant smoke alarms in the property. Whilst some repairs may be required to make your home compliant with current regulations (such as fixing pool fencing), other repairs and updates may help your property attract more buyers, sell faster and fetch a better price.

Being aware of these expenses upfront can help you plan accordingly and make the selling process less stressful. At the end of the day, an experienced real estate agent can guide you through the process and help you understand which renovations will help improve the presentation and add value to your property.

Calculate the cost of marketing your home, including advertising and staging fees

Selling your home can be an exciting but nerve-wracking time, especially when it comes to listing a property. Developing a sales strategy and marketing your property effectively is an investment, but one which can pay off by minimising the time on the market, increasing competition and improving the sale price.

Your marketing plan should be strategically designed to appeal to potential buyers of your home. Your marketing fees may include photography, realestate.com.au listing, online ads, signboards, brochures and staging costs. 

You will also need to understand your selling agent commission and if there will be any additional fees, such as an auctioneer fee. At Penrose Real Estate, we create custom marketing and sales strategies suited to your property, the market and your goals.

Budget for legal expenses like conveyancing

When it comes to purchasing property, conveyancing fees can seem like an unnecessary expense, but they are essential in protecting your investment. From title searches to settlement conditions, your conveyancer or solicitor's job is to protect you against unforeseen issues and prevent future legal disputes about the property. While legal expenses may seem daunting, it's important to allocate a budget for them to avoid any potential financial headaches down the road.

Consider any taxes you will owe after the sale of your property

It's important not to overlook any potential tax obligations that may arise from the sale. If the property has been an investment property at any stage, Capital Gains Tax may apply and the timing of a sale could make a difference to the impact of that. Depending on various factors, such as the length of time you owned the property and the amount of profit made from the sale, you may be required to pay taxes such as capital gains tax.

If your property has been leased, you may have to pay Capital Gains Tax. By speaking to a tax professional such as your accountant, you can ensure that you clearly understand any taxes you may owe after the sale of your property.

Be prepared for unexpected costs that may arise during the process of selling your home

It's important to be prepared for any expenses that might arise so you can minimise stress and avoid any nasty surprises. From unexpected repairs to legal fees, many potential costs can come up during the property-selling process.

We are here to assist you in preparing your home for sale and provide insights into the costs involved, ensuring you achieve the best possible results when the time comes to sell. 

Your home is one of your most valuable assets, so if you're ready to take the next step and sell your home, be sure to consider all of these costs that may arise.

If you would like a free instant property appraisal, please click this link. Alternatively, we would be happy to provide you with a full property appraisal. Please contact us to arrange your property appraisal.