Property Selling Cost Calculator
So, you want to sell your existing property to buy your dream Aussie home? Perhaps you are cashing in on investment property, or relocating to your forever home? Just how much are the costs involved in selling a property in Australia?
First, you need to check your home loan terms. If you have a fixed interest rate loan, you could have an exit fee to pay if you are selling your home before the end of the fixed-term deal. However, if you have a variable interest rate loan, there should be zero exit fees to pay.
You may need to pay for a valuation, costing several hundred dollars, to provide a formal property value. A free appraisal can be provided by your real estate agent, but a valuation is required if you decide to put your property on the market.
Then, factor your real estate agent’s fees into your budget. This will typically reach around 3% of the property sale price. You may also need to pay an additional 1% in marketing costs. Both costs will add up to a high sum, particularly if you secure a great price on your home!
Use Odin Mortgage’s Property Selling Cost Calculator to total the complete costs involved in selling a property in Australia!
How Can I Sell My Property in Australia?
To sell your home in Australia, you must list your property with a real estate agent. The average commission fee for Australian real estate agents falls between 2% – 3%. The real estate agent’s fee is a percentage of your property sale price.
So, if your home sells for $500,000, you may need to pay up to $15,000 in real estate commission. That is a sizeable sum!
You may need to pay additional marketing fees, usually estimated at 1% of the property purchase price. Based on a $500,000 property, you will need to pay another $5,000 in fees for marketing!
How Can I Get the Best Price For My Property in Australia?
The highest possible price for your Aussie home will be achieved if your home is ready to move into and desirable to home buyers.
To achieve the best price, spruce up your home with a fresh coat of paint, making sure that any repairs are complete. You should also declutter and make sure the outside of the property is tidy and attractive.
If you can, renovating the kitchen or bathroom can add tens of thousands of dollars to the property value. It will also attract home buyers to make a faster offer!
What Costs Are Involved in Selling a Property in Australia?
There are several costs to consider when selling your Aussie property. Review our checklist that covers all costs you need to know!
- Real Estate Fees
- Marketing Fees
- Lender Exit Fees
- Capital Gains Tax
- Transfer Fees
- Conveyancing Costs
- Moving Costs
How much will these overall cost you and do you need to pay all of them?
Real Estate and Marketing Fees
You will need to pay up to 3% commission fees for your real estate agent, along with 1% marketing costs.
Lender Exit Fees
If you have a variable interest rate home loan, you will have no exit fees to pay. However, if you have a fixed interest rate home loan, exit fees will be payable.
Exit fees, also called break costs, can total a few thousand dollars. To save yourself from paying exit fees, anticipate when you will need to sell your home. If you switch to a variable interest rate home loan in advance, you will not need to pay any fees!
Capital Gains Tax
When selling an investment property in Australia, you will need to pay capital gains tax. This tax does not apply when you sell your own home, providing it is your primary place of residence.
If you need to pay capital gains tax, it is typically charged against the profit you have made. Your profit is the total remaining after you have deducted all costs involved in the property.
However, if you have owned the property for over 12 months, you could receive a concession. In this case, you may only need to pay capital gains tax on 50% of your profit.
Transfer fees cost a couple of hundred dollars and are fees to transfer the certificate of title when the sale is complete.
A solicitor or conveyancer does not need to complete the formalities of your property sale. You can do it yourself! However, if you make a mistake, it will become an expensive mistake!
Conveyancing fees can cost between $1,000 – $2,000 but is a worthwhile expense!
Many homeowners forget about the costs of physically moving when selling a home. Will you acquire the services of a packing service, and storage service? Will you need a removal service and an unpacking service?
Moving costs soon build up so it is important to do your research at the beginning of the process. Try to complete as many moving tasks yourself to save money!
Do I Need a Real Estate Agent to Sell My House?
You don’t need a real estate agent to sell your home. You can market your home independently, although you may not reach as many possible homebuyers.
Real estate agents help sell your house. They may have particular marketing skills that reach more homebuyers. They will also use online marketing services to advertise your home to a wide audience.
However, you can place a sale sign outside of your home and attempt to sell your home privately. If the right homebuyer comes along, you could save a vast amount of money in real estate agent costs!
How Can I Calculate My Property Selling Costs?
Use Odin Mortgage’s Property Selling Cost Calculator and discover the costs involved in selling your property in Australia.
To use the calculator, simply enter the sale price of the property along with your real estate agent’s percentage commission. Next, enter your agent’s advertising costs and any auction costs, if applicable.
Finally, enter any appropriate agent fees along with other costs such as conveyancing fees. You will discover your total selling costs for selling your property, helping you to budget effectively!
What Can I Do If My Home Does Not Sell?
If you cannot sell your existing property, consider refinancing your home loan with Odin Mortgage! You could achieve a lower rate and lower your monthly repayments.
Additionally, you could include a lump sum from your property’s equity as part of your new home loan refinance deal.
You could access the cash from your home to pay for your next home loan deposit or subsequent investment.
You will save money by not selling your property whilst accessing cash and lowering monthly repayments!
Get in Touch With Odin Mortgage!
Once you have sold your home, you will need a new home loan for your new property in Australia.
Odin Mortgage is the leading mortgage broker for Australian expatriates, working to get great home loan deals for Aussie expats, permanent residents, and foreign nationals living overseas.
We hold an Australian Credit Licence and always strive to provide an accurate and dedicated service to get your home loan pre-approved. Request a call back and speak with one of our experienced team members!
Frequently Asked Questions
Use the Property Selling Cost Calculator above to discover all associated costs involved when selling your home in Australia.
Total costs involved in selling will include relevant early exit fees, removalist costs, and any goods and services tax.
You will also need to a pay real estate agent commission depending on the final sale price of your home. Either a fixed fee or a fee of between 2% to 3% of the property sale price will be applicable, revealing the true cost of your real estate agent fees.
The total cost of selling your home will also need to include settlement fees, legal fees, and an early exit fee to break from fixed home loans.
Odin Mortgage can secure an Australian home loan for Aussie Expats and foreign nationals.
You can access our Borrowing Power Calculator to find out how much you can borrow for a home loan purchase. You can increase your borrowing power by increasing your income and decreasing your outgoings.
Remember to ensure that your home loan deal works for you and is affordable. If you place a deposit of less than 20% on your home loan purchase, you could pay lenders mortgage insurance.
When selling property, real estate websites are a big deal. Most homebuyers will search online before viewing a property in person.
However, if you can market your home yourself, you could save a large amount of money. That money could be put towards a bigger home loan deposit!
If you are an Aussie citizen or a permanent resident, applicable government grants may be available, regardless of working overseas at present.
For example, if you are a first home buyer, you could receive the First Home Buyers Grant, a grant of around $10,000. That amount can be put towards any aspect of your property purchase, and you must intend to live in the property.
Australian citizens may be able to apply for the Home Loan Guarantee Scheme, providing they meet the criteria. You could pay a deposit as low as 5% as a first home buyer buying a brand new house, or a 2% deposit as a single parent. Once again, you must intend to live on the property.
Unfortunately, foreign nationals and Expat investors are not able to secure any incentives.