Cost of Selling Property Calculator
Selling property in Australia? Learn the true costs, including agent fees and commissions. Use the Craggle Calculator to plan effectively.
Introduction
When you're ready to sell property, understanding the full range of costs involved is crucial. Many homeowners focus on the sale price, but without a clear grasp of the associated fees, you might end up with less than expected. This guide will walk you through the essential costs of selling a house, from real estate agent commissions to legal fees. We'll also introduce the Craggle Cost of Selling Property Calculator, a valuable tool to help you anticipate these expenses and calculate your net proceeds from the sale. However, remember that the calculator doesn’t account for Capital Gains Tax (CGT)—for this, you should seek specialist advice.
Real Estate Agent Costs
Sale Price of Property
The sale price is the amount your property sells for, which will directly influence all other costs. It's crucial to be realistic about what your home will fetch in the current market.
Real Estate Agent Commission
Real estate agent commission is typically the most significant cost when selling a house. Commissions generally range from 2% to 3% of the property's sale price. For a property selling at $600,000, you might expect to pay between $12,000 and $18,000 in commissions.
Agent Advertising Costs
These are the fees associated with marketing your property. Advertising costs can vary depending on the marketing strategy chosen but typically range from $1,000 to $10,000. This can include online listings, professional photography, and brochures.
Auction Costs
If you choose to sell your property at auction, additional costs may apply. Auctioneer fees typically range from $400 to $1,000, depending on the location and the auctioneer's experience.
Other Selling Costs
Government Mortgage Discharge Fee
If you have a mortgage on your property, you will need to pay a discharge fee to your lender. This fee usually ranges from $150 to $400, depending on the lender and state.
Solicitor / Conveyancing Fees
Legal assistance is essential to ensure the sale process is handled correctly. Conveyancing fees typically range from $800 to $2,000, depending on the complexity of the transaction.
Removalist Costs
Moving out of your sold property comes with its own set of costs. Hiring professional removalists can cost anywhere from $300 to $3,000, depending on the distance and amount of belongings.
Settling Costs / Outstanding Bills
Before finalising the sale, you must settle any outstanding bills related to the property. This could include unpaid utilities, council rates, and strata fees, which can total a few hundred to several thousand dollars.
Lender Fees
Prepayment Fee
Some lenders charge a fee if you pay off your mortgage early, often referred to as a prepayment or break fee. This can range from a few hundred dollars to several thousand, depending on the loan terms.
Settlement Fee
A settlement fee covers the administrative work of closing your mortgage account and transferring the property. This fee usually ranges from $100 to $400.
Early Exit Fee
An early exit fee may apply if you're exiting your mortgage before a certain period. While these fees have been largely abolished for new loans, older loans may still carry an exit fee that could be substantial.
Craggle’s Cost of Selling Property Calculator
Selling a house comes with many costs, and it's easy to overlook some of them. The Craggle Cost of Selling Property Calculator is a helpful tool that allows you to input all the relevant figures, giving you a clear picture of your potential net profit. This calculator covers most costs but does not consider Capital Gains Tax (CGT). To understand your CGT obligations, seeking specialist advice is recommended.
FAQs
What is the average real estate commission?
Real estate agent commissions generally range from 2% to 3% of the property's sale price.
Are auction costs included in real estate agent fees?
Auction costs are usually separate and can range from $400 to $1,000.
What are solicitor fees when selling a house?
Solicitor or conveyancing fees typically range from $800 to $2,000, depending on the complexity of the sale.
Do I have to pay a mortgage discharge fee when selling my house?
Yes, most lenders charge a discharge fee, which usually ranges from $150 to $400.
What is the Craggle Cost of Selling Property Calculator?
It’s a tool that helps sellers calculate the net profit from their property sale by accounting for most associated costs, except Capital Gains Tax.
Do I need to pay Capital Gains Tax when selling my property?
Capital Gains Tax may apply, depending on your situation. It’s best to seek specialist advice to understand your obligations.
Conclusion
Selling property involves various costs that can significantly impact your final profit. From real estate agent fees to legal costs and lender fees, being aware of these expenses helps you plan better and avoid surprises. The Craggle Cost of Selling Property Calculator can be an invaluable resource to ensure you have a clear understanding of the financial outcome.
Remember, for a thorough understanding of Capital Gains Tax, it’s essential to consult a tax specialist.
Disclaimer: The opinions expressed in this article are strictly for general informational purposes only and should not be taken as financial advice or recommendations.