For Australian homeowners and property investors, the costs of selling a house encompass real estate agent fees, marketing expenses, conveyancing fees, legal fees, mortgage discharge fees, settlement adjustments, property presentation costs, and moving expenses. Additionally, capital gains tax may apply when selling an investment property or any property not fully covered by a main residence exemption.
Your final net return is not simply the final sale price. It depends on the amount received, any existing mortgage loan that must be repaid, transaction and selling costs, and potential tax consequences specific to your circumstances.
Because fees and tax treatment vary across regions and situations, always request written quotes and seek appropriate professional advice before committing to the property-selling process.
Costs of Selling a House: The Direct Answer
The primary costs are typically real estate agent commission, marketing and advertising expenses, conveyancing or solicitor fees, lender charges, and optional property preparation costs. Some sellers will also incur moving expenses and tax obligations, such as capital gains tax.
There is no universal total for selling costs. The agent agreement, property market value, selling method (private sale, auction, or private treaty), location, mortgage loan terms, and extent of property preparation can all influence the total costs involved.
How to Estimate Your Final Return
Begin with a realistic estimated sale price based on current market value evidence, not the highest figure quoted by local real estate agents.
Subtract the mortgage payout, selling costs, settlement adjustments, and other amounts due from the gross sale price. Keep the result as a range because a reserve price or advertised guide does not guarantee the eventual sale price.
The following example shows why the sale price is not the same as the amount a seller receives. It is illustrative only and excludes any capital gains tax that may apply.
Calculation | Illustrative amount |
|---|---|
Final sale price | $700,000 |
Less mortgage payout | ($350,000) |
Less agent commission at 2.5% | ($17,500) |
Less marketing | ($3,000) |
Less conveyancing and legal costs | ($1,500) |
Less lender and discharge costs | ($500) |
Less moving and settlement allowance | ($1,500) |
Estimated net proceeds before possible CGT | $326,000 |
The Main Costs Involved before and after Sale
Separate upfront costs from amounts deducted at settlement. Marketing expenses, professional photography, home staging, and some legal documents may require payment before a buyer commits.
Agent commission, the existing loan payout, lender fees, and settlement fees are commonly dealt with when the sale completes, although the contract and service agreement control the timing.
Agent Fees and Real Estate Agent Commission
Real estate agents may charge a percentage commission, a flat fee, a fixed fee, or a tiered commission structure. The agreement should clearly state the rate, included expenses, and circumstances in which payment is due.
In NSW, for example, government guidance requires an agency agreement to state agreed fees or commission, services provided, and payment arrangements. Requirements vary by state or territory.
Ask several real estate agents for written proposals. Published estimates commonly place commissions between 1.5% and 3.5% of the sale price, while broader examples extend from 1.5% to 4.5%. Rates vary by location, property value, and level of service. Auction fees can add about $500 to $1,500, although some agency agreements include the auctioneer costs.
Commission structure | How it works | Potential advantage | What to check |
|---|---|---|---|
Percentage commission | The agent receives an agreed percentage of the sale price | Aligns the fee with the final selling price | Calculate the dollar fee at several possible sale prices |
Flat or fixed fee | The agent receives a predetermined amount | Makes the core agency fee easier to budget | Confirm whether marketing, GST and auction costs are additional |
Tiered commission | The rate or fee increases after the sale price exceeds an agreed threshold | May provide an incentive to exceed the target price | Review the threshold, higher rate and total fee carefully |
Marketing Costs Generally
Marketing costs can include a real estate listing, floor plan, signboard, copywriting, professional photography, video tours, social media promotion, and placement on real estate websites or property sales portals.
Published marketing estimates vary widely. Some guides quote $1,000 to $4,000, while larger campaigns may cost $2,500 to $10,000 or more. Digital marketing campaigns for premium or extended campaigns can exceed $10,000 per month. Spending more does not guarantee a higher sale price.
Ask which marketing items are compulsory, whether funds are refundable, and how the campaign will focus on generating buyer interest without pressuring potential buyers away.
Home Staging and Presentation Costs
Home staging may involve furniture hire, styling, storage, professional deep cleaning, bundled carpet cleaning, lawn mowing services, landscaping, and general repairs work. Published examples range from $100 for limited help to $20,000 for extensive staging. These are voluntary costs that can enhance property appeal but cannot guarantee a higher sale price.
Conveyancing Fees and Legal Fees
A solicitor or licensed and accredited conveyancer prepares the legal documents required for property title transfer. Conveyancers handle the contract and settlement paperwork, including searches and disclosure statements.
Published estimates put conveyancing or legal fees at $500 to $1,800, with other guides quoting $800 to $2,200. These costs are not nationally fixed. Do not rely on a single conveyancing fees estimate, which may exclude disbursement fees, searches, certificates, and extra work.
Mortgage Discharge Fees
If there is a home loan, notify the lender early that the property is being sold. The lender will provide the payout figure and arrange the mortgage discharge.
Mortgage discharge fees generally appear in published ranges from about $150 to $1,500, but the actual amount depends on the loan, lender, and government charges. Ask whether you must pay lender fees and request a written payout estimate.
Fixed Rate Loan, Break Costs and Early Exit Fees
Breaking fixed-term loans can create break costs or early exit fees based on the loan contract, interest rates, and remaining fixed period.
Do not assume loan portability will remove every cost. Portability may allow an existing loan to move to another property, but eligibility, timing, and residential lending credit criteria still apply.
Ask the lender for a current payout estimate before listing. If the loan structure is complex, obtain advice specific to your financial situation.
When to Speak with a Home Loan Specialist
A home loan specialist or mortgage broker can explain bridging loans, loan portability, or a new mortgage application. The lender’s important information and credit criteria statements apply separately to the sale, and non-Australian resident borrowers may face different requirements.
Settlement Fees and Other Costs Involved
At settlement, adjustments may be made for council rates, water, owners corporation charges, rent, or other property outgoings. The exact treatment depends on the contract and jurisdiction.
Settlement fees can also refer to conveyancer, lender, or electronic settlement charges. Ask each provider to identify its own fee so the same amount is not counted twice.
If a property sells with a tenant, confirm rent, bond, notices, and management adjustments with the conveyancer and property manager.
Moving Costs and Transition Expenses
Moving costs can include removalists, storage, utility connections, mail redirection, temporary accommodation, and insurance changes. Published examples range from about $200 to $5,000 or more, depending on distance, volume, and service level.
Capital Gains Tax When Selling Property
Capital gains tax applies to profits from selling a property, although exemptions and cost-base rules matter. A net capital gain is generally included in assessable income and taxed at the applicable marginal tax rate.
You generally will not pay CGT on a property that qualifies for the full main residence exemption. Investment property sales and mixed-use or previously rented homes can require a capital gains calculation.
Some transaction costs may form part of the CGT cost base rather than being claimed as an immediate deduction. The ATO identifies incidental acquisition and disposal costs, including certain agent, legal, and valuation fees, as potentially relevant to the cost base.
The contract date is commonly the CGT event date for a property sale, not the later settlement date. Exceptions and special rules can apply.
Whether you pay CGT, the amount, and eligibility for any discount depend on facts beyond the sale price. This article does not constitute tax advice. Ask an accountant or tax adviser to review your records and current tax laws.
How Property Value Changes the Costs of Selling
Property value affects the final net return in several ways. First, a higher final sale price increases gross proceeds.
Second, a percentage agent commission increases with sale price, while a flat fee does not. Marketing and presentation costs may also differ for specialised or high-value properties.
Third, market value can matter for related-party transfers and tax calculations, even when the agreed consideration differs.
Selling Property Privately
Selling property privately may avoid some agent fees, but the owner takes responsibility for pricing, enquiry management, inspections, negotiation, and buyer follow-up.
The seller may still pay for legal work, online listings, professional photography, signage, compliance, and settlement. Private sale does not remove mortgage discharge, moving, or tax issues.
Before selling a property privately, compare potential savings with the time, risk, and reach of the marketing campaign. Saving commission is not useful if poor exposure or negotiation reduces the final sale price.
Typical Costs to Compare before Signing
Selling cost | Indicative amount or basis | When it may be paid | What to confirm |
|---|---|---|---|
Real estate agent commission | Commonly 1.5% to 3.5% of the sale price, although broader published examples extend to 4.5% | Usually at settlement | Whether GST, marketing and administration are included |
Marketing campaign | Around $1,000 to $4,000 for some campaigns, with larger campaigns potentially costing $2,500 to $10,000 or more | Often upfront | Photography, listings, signboard, floor plan and advertising inclusions |
Auctioneer | Approximately $500 to $1,500 | Before or after the auction | Whether it is included in the agency agreement |
Home staging and presentation | From limited preparation to $20,000 or more for extensive work | Usually upfront | Furniture hire, cleaning, storage, repairs and styling |
Conveyancing or legal work | Published examples range from approximately $500 to $2,200 | Upfront, during the sale or at settlement | Searches, certificates, disbursements and additional work |
Mortgage discharge | Published examples range from approximately $150 to $1,500 | Usually at settlement | Lender, registration and fixed-rate break costs |
Moving and transition costs | Approximately $200 to $5,000 or more | Before or after settlement | Removalists, storage, utilities and temporary accommodation |
Capital gains tax | Depends on the property, ownership, use and available concessions | After the sale through the tax process | Obtain advice from a registered tax agent |
These figures are indicative planning ranges only. Actual costs depend on the property, location, service providers, loan and selling strategy. Obtain current written quotes before listing.
Optional building and pest inspections are commonly quoted at $600 to $1,800. Renovation costs can range from $100 to $20,000 or more. Repairs and maintenance costs vary significantly depending on the extent of work needed. Obtain current local quotes.
Building a Selling-Cost Budget
Create a worksheet with three columns: expected, low, and high. Record the estimated sale price, loan payout, agent fees, marketing, legal work, lender charges, settlement adjustments, moving, and possible tax.
Identify which upfront costs must be paid before exchange and which amounts are likely to be deducted at settlement.
Frequently Asked Questions
Are Real Estate Agent Fees Negotiable?
Often, yes, depending on local laws and the agency. Before signing, compare the commission, marketing costs, services included and the total dollar cost at different sale prices.
Can You Save Money by Choosing the Cheapest Marketing Campaign?
You can reduce your upfront marketing costs, but the cheapest campaign will not always provide the best value. Consider whether it will effectively reach and inform the buyers most likely to be interested in your property.
Does Home Staging Guarantee You a Higher Sale Price?
No. Home staging can improve your property’s presentation, but buyer demand, property condition, location and market conditions will still influence the final sale price.
Will You Pay Capital Gains Tax When Your Property Sells?
It depends on how you owned and used the property, the relevant dates, your residency status and any available exemptions or discounts. Obtain professional tax advice before completing your capital gains tax calculation.
Will Higher Interest Rates Increase Your Selling Costs?
Higher interest rates can affect your accrued loan interest, buyer demand and some fixed-loan break costs. The effect will depend on your existing loan and current market conditions.
Plan around the Net Result, Not Only the Sale Price
The best comparison is between realistic net outcomes. A formal property valuation can support the estimated market value when an independent assessment is useful, but it cannot remove selling costs or guarantee what buyers will pay.
General information only: This article is general in nature and does not take into account your individual circumstances. It should not be relied on as tax, financial, or legal advice. Speak with a qualified professional before making decisions about your property, tax position, or investment strategy.
