Most sellers focus on the sale price, but what you take home depends on the costs along the way. Knowing what to expect helps you plan, compare offers properly and avoid surprises at settlement. Costs vary from property to property, so this guide describes the main categories rather than quoting set amounts. Ask your agent, solicitor and accountant to give you figures that apply to your sale. This is general information only.
Agent Commission
Agent commission is usually the largest selling cost. It is set out in the agency agreement you sign, and it is negotiable. It is commonly calculated as a percentage of the sale price, though other structures exist. Make sure you understand how it is calculated, when it is payable and what service it includes before you sign.
Marketing Costs
Marketing may include professional photography, floor plans, video, online listings, signage, social media advertising and printed material. The agency agreement should set out which marketing items are included and which you will pay for. Ask for an itemised marketing budget, and understand whether costs are payable upfront or from the proceeds of sale.
Auctioneer Fees
If you sell at auction, an auctioneer’s fee may apply, and extra costs such as additional advertising can come with an auction campaign. Your agent can explain these before you decide on a sale method.
Legal and Conveyancing Fees
You will need a solicitor or licensed conveyancer to prepare the contract of sale and manage the legal side of the sale. Fees vary between providers, and there may be additional costs for obtaining documents such as the planning certificate and sewer diagram. Ask for a clear fee quote upfront.
Preparing the Property
Presentation can have a real effect on results, and it also carries a cost. Costs might include cleaning, gardening, minor repairs, painting, decluttering, styling or furniture hire, and a pre-sale building or pest inspection. Speak with your agent about which items are worth doing for your property, and which are not.
Mortgage and Settlement Costs
If you have a mortgage, your lender will need to discharge it at settlement, and there may be fees for this, including a discharge or early repayment fee, depending on your loan. Your lender can tell you the figures. At settlement, adjustments are made for rates, water and any other charges, so that each party pays their share up to the settlement date.
Moving and Timing Costs
If you are buying another home, there may be costs such as removalists, temporary accommodation, storage, or bridging finance interest if the timing does not line up. See our guide on selling first or buying first for how timing affects costs.
Tax
Selling your main residence is generally exempt from capital gains tax if it meets the conditions, but selling an investment property can have tax consequences. Speak with an accountant before you list, and see our guide on capital gains tax when selling property.
What You Receive
In simple terms, the proceeds from your sale are the sale price, less your selling costs, less the payout of any mortgage, with adjustments at settlement. Ask your solicitor or conveyancer for an estimated settlement statement, so you understand what you are likely to receive.
Ways to Manage Costs
- Compare more than one agent’s fees and marketing proposals, but weigh up the whole service, not just the lowest price.
- Ask for the agency agreement in advance, and read it carefully.
- Be selective with presentation spending, and ask your agent where it will make the most difference.
- Request quotes from solicitors or conveyancers.
- Keep a buffer for unexpected costs.
Frequently Asked Questions
Is agent commission negotiable? Yes. It is set out in the agency agreement, and you can discuss the fee and the service included before you sign.
Who pays for marketing? This depends on the agency agreement. Marketing costs are commonly paid by the seller, either upfront or from the proceeds of sale. Ask for an itemised budget.
Do I pay stamp duty when I sell? Stamp duty (transfer duty) is generally paid by the buyer, not the seller. Sellers have other costs, as described above.
Will I pay tax when I sell? It depends on the property and your circumstances. Main residences are generally exempt from capital gains tax, subject to conditions, while investment properties may not be. Ask an accountant.
When will I know my total costs? Your agent can outline costs before you sign, and your solicitor or conveyancer can prepare an estimated settlement statement.
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This article is general information only and is not financial or tax advice. Please speak with your agent, solicitor and accountant about your circumstances.
