At Nesters, our research shows that more people would sell their homes if it didn’t cost so much. Clearly, there’s a need and desire to save money, but it’s just too dangerous to sell without agents. But what should selling a home really cost? Here we break down all the different types of real estate fees in Perth, including all charges and taxes, to give you a clear picture of what figures you’re looking at.
The initial fees involved with selling a property are the costs of marketing. These charges can be low or high, depending on how much and what quality of marketing you want. The simple fact is that the better your marketing, the greater the chance of selling your home for the best price. Good marketing hits two key checkpoints: it represents your house as beautiful and liveable, and it reaches the widest audience possible.
In Perth, a bare-basics marketing package consisting of just a sign board and a few letters, could cost as little as $400. But a more effective package consisting of staged-photography, virtual 3D floor plans, online listings and social media advertising, can cost as much as $7,000. Press advertising and quality copywriting are just some of the add-ons you can get to promote the sale of your home.
While not necessary to selling your home, an agent certainly helps you get a better price. If you choose to sell without agents, you’ll pay no fees, but you’re also likely to get a much lower price for your home. It’s up to you to decide whether this gamble is worth it.
If you do decide to use a traditional agent, they will charge you between 2.5% and 3.25%. To put this is more digestible terms, if your house is worth $500,000, you’ll pay the agent a minimum of $12,200. However, there is yet another innovative option to avoid the urge to sell without agents. The Third alternative is a “breakthrough” real estate like Nesters, where technology is used to give the homeowner updates in real time and with an expert professional working in partnership to achieve the best results.To read more about it, see our How It Works page.
Every real estate transaction in Australia requires the transfer of property title from one person to another – this is called conveyancing. You’ll need to hire a conveyancer or a solicitor to do this job, which will cost you between $800 to $1300.
Capital Gains Tax
If you’ve made a profit selling your home, then you’ve made a capital gain (as opposed to a capital loss). This profit is counted as part of your income for the year and taxed. Although we tend to call this capital gains tax (CGT), it’s really just your income tax that you need to take into account when selling your home.
CGT is often another factor that prevents people from selling, however there are ways to avoid paying CGT. The tax doesn’t apply to depreciable items, so one way to save money might be by renovating the property before you sell. There is also a special rule where you don’t have to pay CGT on your main place of residence.
In addition to the above typical real estate fees, Perth sellers may also be looking at some extras. These might be items you choose to boost the value of your property, such as maintenance or landscaping, or they may be unexpected fees from councils, body corporate or water rates. Be sure to research any extras you’ll have to pay before launching into your sale.
Want a cost-effective solution to selling your home? Nesters take only a 1.5% commission fee while helping to sell your home for the best possible price.