Understanding Real Estate Selling Fees

30th July 2024 Selling tips & Advice Grace Foley

Selling real estate isn’t as easy as placing a “For Sale” sign at the front of the property, and it isn’t as cheap either.

When you sell a real estate property in Perth make sure you understand the costs that are involved in the process such as the cost of preparing the property, selling with an agent, advertising your property, and any additional legal and tax costs you might incur.

If you’re not sure what costs to expect when selling your Perth property, this guide will help you understand what you can expect.

Getting The Property Ready For Sale

While you might think your property is ready as it is, often some work is required to improve its presentation. Small defects and outdated styling can significantly impact the selling price of your property.

Styling And Staging

Staging (or styling) prepares your property for sale by professionally decorating the interior to appeal to potential buyers. It helps display the full potential of your property and allows buyers to see how they would fit into the space following their purchase. This in turn increases your property’s appeal and can influence the selling price.

Note that this strategy is only possible if your property is not currently tenanted.

Pest And Building Report

A pest and building report helps you understand if work is required to bring your property up to standard. These reports outline any maintenance needed on the property as well as a thorough check of potential pest infestations and damage.

While some of these damages may be hidden from the naked eye, this is an important pre-sele step. It minimises the risks of unwanted last-minute surprises if the new buyer was to find a problem with the property during the due diligence phase.

Agent Fees

Selling with a Perth property agent can help you get the most out of your property while also alleviating your stress and freeing up your time.

There are three types of real estate agent fees you may be subject to depending on the agency you select.

Flat fee

The agent and you agree on a fixed fee for the selling of the property which is not subject to change regardless of the price the property sells for.

Commission

In a commission system, the agent takes a percentage of the final sale price of the property. The percentage of the final sale price will depend on a few factors such as:

  • The agent you choose to work with.
  • The properties estimated value.
  • The level of service and marketing offered by the agent.
  • The complexity of the sale.

Bonuses

Bonuses are increasing in popularity for real estate agents. These are applied only when the agent can secure a selling price that is above and beyond the agreed-upon expectations. Often taken as a percentage of the final sale price subtracted by the expected sale price.

Lender and Mortgage Fees

If you have a mortgage on the property you are selling then you may be required to pay an additional fee to your lender in the form of an early exit or discharge fee. This fee covers any legal or admin fees that occur to your lender as a result of you ending the mortgage.

Auction Fees

While not as popular as they once were, auctions can still be an effective and beneficial option for selling properties in Perth.

Some fees incurred in the auction process include the price of hiring a professional auctioneer and the additional advertising expenditure required for the auction process.

Marketing and Advertising

Marketing ensures that your property is put in front of the right buyers, with the right images, at the right time. Some of the marketing costs you may incur include:

  • The “For Sale” signage outside of your property
  • Professional photography and videography
  • Digital and print brochures and pamphlets
  • Press advertising
  • Property listing fees
  • Copywriting and content creation
  • Social media advertising

Capital Gains Tax

Whenever you sell a property at a profit you are subject to capital gains tax (CGT).

Capital gains tax applies to the following properties:

  • Retail investment properties
  • Rental properties
  • Holiday homes
  • Vacant land

Using an estimate of your asking sale price you can estimate your CGT using the ATO’s Capital Gains Tax calculator.

Strata and/or Council Fees

If you have outstanding or upcoming council rates and/or strata fees then these may become an additional expense during the selling process. This includes any outstanding fees with your local council, water, and land tax authorities.

Conveyancing Fees

Following the property sale, a conveyancer, lawyer, or settlement agent is engaged to carry out the conveyancing process. This is the process of transferring legal ownership of the home from one party to another and is an essential step in the selling process.

Ready to sell?

When it comes time to sell your home, you want a team you can trust by your side. At Selling Perth Property, we specialise in helping real estate owners all across Perth get the most out of selling their properties.

If you’re ready to start your selling journey, submit an appraisal request today.

 

Disclaimer: the fees you encounter when selling your property may be different to what is outlined in this list, contact us to learn more or submit an appraisal.