How to Sell Your House in Australia

Whether you’re downsizing, moving into a larger house, or have found the house of your dreams, you’ll need to know how much it’s going to cost to sell your current house. Answering the question: ‘What does it cost to sell a house?’ will enable you to budget, work out what you need to borrow, and give you a more accurate idea of what you can pay for your new house.

Proper Preparation Prevents Poor Performance

A good way to stay on track when you sell your house is to use the 5Ps. Using ‘Proper preparation prevents poor performance’ will enable you to focus on the essential things.

Proper

Proper means having the right information on hand. Appoint your conveyancing solicitor early and ensure they have everything they need to prepare contracts and other paperwork. Also, don’t appoint your real estate agent at the last minute.

Planning

Planning means preparing your home for sale. The best way to do this is to understand what your typical potential buyer is looking for and how you’re going to WOW them.

Prevent

Prevent unpredictable things from happening. Stay in touch with your real estate agent, conveyancing solicitor, stylist, builder, gardener, and anyone else you’ve employed to prepare your house for sale.

Poor

Poor is a word you don’t want to contemplate. Make sure your house is presented in an optimal way. Don’t accept inferior work and make sure the house you present for sale is dazzling.

Performance

Performance is the culmination of your hard work. Your house is presented in the best condition possible, and all the paperwork is on hand to eliminate any holdups.

Don’t Over-Capitalize on Renovations

To ensure you sell your property for a profit, you mustn’t spend more than the price you’ll achieve at the sale. The best way to do this is to talk to your real estate agent before you spend a large sum of money on renovations.

Market Trends

They know market trends, what houses like yours are worth, and the value of your location. If you invite your agent around after you’ve done the renovation, it’s too late to undo any errors of judgment.

Return on Investment

If you’ve spent $50,000 on a new kitchen and it increases the value of your house by $30,000, then you’ve likely lost $20,000 at auction or private sale.

Style Your Way to Success

Yves Saint Laurent once said that ‘fashions fade, but style is eternal.’ When it comes to selling your house, a professional home stylist can make a difference in the price you achieve.

Create an Image

A stylist can create an image for your home that will appeal to the dreams and vision of your typical purchaser. If you’re selling an apartment in the inner-city, your stylist will make your place appeal to young professionals on the rise. If you’re selling a suburban house with a backyard, your stylist will style to appeal to families with children.

Cost of Styling

The price you can expect to pay for a professional stylist depends on the size of the home. Costs can range from $4,500–$6,5000 for three- and four-bedroom homes to less than $2,000 for a one-bedroom apartment. What does it cost to sell a house? Well, when it comes to styling, it’s worth the cost. Experience shows that a well-styled home will increase its sale price by 8–12%, over a home that hasn’t been styled.

Find the Right Agent

Finding the right real estate agent is key to a successful sale. Your agent works on your behalf, so good communication between the two of you is essential.

Agent Fees

There are two types of agent fees – a flat fee and a percentage of the sale fee. A flat fee is agreed before the sale and is set no matter what price the property sells for. The percentage of sale fee is generally between 1.5% and 3.5%. Often a bonus is added to this fee with a condition, such as a greater percentage for any amount above the reserve.

Marketing Costs

Additional costs include photos, drone video footage, and online advertisements. All up, you can expect marketing costs to average between $1,000 and $10,000, depending on your advertising needs and your state or territory.

Auctioneers

If you’re going to auction, your agent, or an auctioneer from their office, will try to fire up a bidding war between buyers to ensure you get the best outcome. Auctioneers can charge around $1,000 for their services.

Bank and Conveyancing Fees

Selling your home is a legal process that requires binding contracts of sale and formal transfer of ownership. For this, you’ll need a conveyancing solicitor at a cost between $1,000 and $2,000, depending on your state or territory.

Mortgage Discharge Fee

If you’re holding a mortgage on the property you’ve sold, your bank will likely charge you a mortgage discharge fee that ranges from several hundred dollars to $1,000, depending on your loan provider. If you’re breaking the terms of your loan, you’ll also pay a break fee.

In conclusion, selling your house in Australia involves various costs and preparations. By properly preparing your home, avoiding over-capitalizing on renovations, styling it to appeal to potential buyers, finding the right real estate agent, and accounting for marketing, bank, and conveyancing fees, you can ensure a successful sale. Remember to budget accordingly and seek professional advice to make the most of your selling experience.