Costs of Selling a House and how to Minimize Them

There are hundreds of reasons to sell a home. You could be upgrading to a bigger house, relocating to another city, downsizing, or loading off investments. Whatever the reason, one aspect remains constant – the costs. Selling homes in Brisbane can be costly, and home sellers cannot assume the entire sale price to go into their bank accounts. Here are the expenses that you need to consider into the financial structure of your home sale.

Agents’ Commission – This is usually the biggest expense of home selling. The seller pays for both real estate agents – seller’s and buyer’s. Real estate commissions in Queensland are deregulated. Thus, an agent can set the price of his or her services. The ongoing rate of agent’s commission is around 7% of the sale price. Commissions are only paid after the property is sold.

Going for the cheapest real estate agents is not always cost-effective. You might only be listing and marketing your home, and not selling it. Go for the agents with the best sell rate and lowest average days on market. The faster you sell the home, the better for you.

Home Fix-Ups – The cost of your home fix-ups in preparation to sell depends on the overall condition of the house and the targeted sale price. If you want your house to sell for higher, more upgrades and improvements should be done. You have the option to sell ‘AS IS’ or in whatever the house is, but this method of selling usually comes with a ‘something is wrong’ impression and expect low offers.

Homes in Brisbane are usually sold on topnotch condition. Dilapidated properties that are not fixed are usually priced for its land value. It is best to consult with an agent to determine your options and the possible sale prices you have.

Marketing – Homes do not sell by simply listing it. The best real estate agents in Brisbane appropriately market their listings in order for it to sell. They conduct open houses, staging, engage professional real estate photographers, and place paper and online ads.

Marketing costs build up while your home is on the market. The best way to cut down on marketing cost is to sell your house quick. Engage a real estate agent that have a track record of selling fast.

Taxes and Legal Fees – Real estate property tax, GST added to the agents’ commission, lawyers’ fees, and transfer taxes are some of the fees you need to cover during closing. Tax rates depends on the sale price and the applicable tax table of your territory. There is no getting around legal fees, as these are your obligations.

Banker’s Fees – This is not applicable if you fully own your home. Banks might collect several chargers when selling off properties with unpaid mortgage. Early repayment charge, exit fees, and mortgage balance payoff are all deducted from the sale price. This is the bank taking off the unpaid portion of the mortgage and other charges. Check with your bank and review the contracts you signed for any early payment charges. Know your options and talk to your bank, some creditors agree to waive or lower fees upon request.

Other expenses could include escrow, deposit, and insurance fees. Take into stock all the possible deductions from the sale of your home. This can help you set the asking price and financially plan for your next property. Do not forget the moving costs, storage, and the cost of settling in your new home. And it would be nice to still have a good amount left in your bank account after all your duties are paid off. We can help you sell and get the best deal out of your home in Brisbane, and find your next home too. Call us now.

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