House Selling Fees
When selling your home, there are a lot of things that you will have to take into account. One of those such things is the fee that a real estate agent will charge you. However, there are far more hidden house selling fees than just the agent fees. In this article, we tell you all these costs so that you are better prepared.
The Key Costs of selling a house
The Cost To Sell At Auction
The agent commission is not the only fee that you will pay when selling your house. Auctions usually come with extra costs. For instance, you could have to contend with auctioneers fees. The expense could be included in your agent’s sales commission but you should always clarify this.
In case you currently have a mortgage on your home, you will have to pay the creditor the mortgage balance. If you are planning to have the mortgage changed to a different lender, you may also have to contend with discharge fees.
Associated Costs With Marketing/Advertising
You should also brace yourself for marketing and advertising costs. Make sure that that you get a detailed marketing plan from your agent. Also, you need to agree with your agent on all outgoing expenses. They should be documented all over the contract terms. Generally, expect to pay for advertising and marketing costs, and this is regardless of whether your property sells or not. This is why it is recommended to try and negotiate the no sale, no fee agreement.
How Much Can A Solicitor/Conveyancer Cost?
Conveyancer or Solicitor fees also form the cost of selling a house. Conveyance is simply the process whereby ownership is transferred from one party to the other. Conveyancing process involves 2 title searches, which is why most people choose to us a conveyancer or a solicitor. Costs can be as little as $500 or a much as $2000. However, these costs go up in states that require solicitors to complete conveyance. Make sure to inquire if the solicitor/conveyance fee is part of the full costs, or if it’s an estimate.
Repairs And Maintenance
Although this seems obvious, before you put your home up for sale, you need to factor in the repairs that will have to be done to ensure that your house is ready for sale and also appealing to potential clients. You need to find out from your agent if the repairs are a must or which ones are simply good to have.
If the home has major issues such as faulty plumbing, leaks or electrical work, it could turn off potential buyers immediately, something that could prolong the time that it takes for your home to be sold. However, there are certain repairs that greatly improve your home’s value and attract a sale price which more than covers total repair costs. It is advisable to attempt to see any possible maintenance issues which could come up during the process of sale and see to it that they are rectified immediately.
Real Estate Agent Commissions
While the agent commission varies from one state to another, it is usually calculated as a percentage of the sale price of a home. However, there also a few other options that your agent may propose and they include sliding-scale commissions, flat fees and fixed rates among others.
Home valuation guide collects together the only statistical data outlining real estate agent commission fees for all the states in Australia.
Real Estate Agent Costs Explained
Real estate commission refers to the fees that agents charge for the service. It is a percentage of the sale price of a home usually negotiated between a seller and the agent at the time of listing the home. The fee is usually split between real estate agents that are involved in the transaction. This commission can range from anywhere between 1% and 6%. It’s paid out of the sales proceeds at the close of a transaction.
How Is The Commission Determined?
The selling agent and the homeowner negotiate on the commission percentage at the instant of listing. When the property is under contract and a sale price is determined the commission amount is then worked out based on this. The commission is proposed by the real estate agent but the seller is free to negotiate.
Is the Commission Negotiable?
The real estate commission remains negotiable until such a time that the seller signs listing a agreement with agent. A listing agreement refers to a contract between real estate agency that the agent works for and the seller. The contract spells out the rights as well as the responsibilities of both parties, i.e. the company details, property details and the seller. This includes the commission amount, when it’s paid and who pays it.
Another cost of selling a house is home staging. Today’s crops of homebuyers are savvier, which has increased the need to have your home be outstanding from the crowd. Majority of homeowners seek the services of home stagers to assist them showcase the best assets of their properties. Consider the price point of your home and discuss the cost-benefit analysis of contracting a home staging professional with your agent.
After selling your house, you may need to move. Given that it may have taken many years since you moved last, you might be shocked by the cost of hiring a professional mover. The good thing is that there are lots of options with regard to moving. These include DIY options and full-service moving companies. Make sure that you compare costs and choose an option that suits you most.
Most people associate selling house with just on cost, which is the agent fees. But the truth is that there are many house selling fees that you need to be prepared for. These include auction fees, mortgage costs the cost of moving, repair costs that can become quite significant and home staging fees among other things. The best thing to do is to talk with your agent to understand these costs and know which ones are necessary and the ones that are not.