What Are the Costs Involved With Selling Your Home?

Estimate your sale proceeds after the costs of selling, repaying the loan and settling the transaction. Keep the costs of buying a replacement home in a separate budget.

Agent, marketing and preparation

Read the agency agreement for commission, marketing charges, payment timing and any separately agreed incentive. A bonus is not an automatic selling expense. Obtain written quotes for photography, advertising, styling, repairs and cleaning, and decide which work is worthwhile for the property.

Legal work and the mortgage

Ask a solicitor or licensed conveyancer for an itemised sale quote. Ask the lender for the payout amount, discharge costs and any applicable fixed-rate break costs. The loan balance repaid from settlement is distinct from the fees charged to discharge it.

Settlement adjustments

Your conveyancer should explain the contract’s treatment of council and water rates, strata levies, outstanding amounts and other adjustments. Allow for moving costs and any gap between selling and buying settlements.

Tax and government charges

NSW transfer duty is generally an acquisition cost for the purchaser, rather than an ordinary seller’s expense. If you buy another property, include its duty and registration costs in that separate purchase budget.

Capital gains tax depends on the property’s use, ownership and residency history and any applicable exemptions. A main-residence exemption is not automatic in every case. Ask a registered tax agent to assess the sale. Australian-resident vendors should also arrange any required ATO clearance certificate before settlement; withholding requirements are separate from the final tax calculation.

Compare the net result

Use the expected sale price less the loan payout and itemised selling costs to estimate funds available. Keep contingency for uncertain costs and compare a range of sale prices before committing to another purchase.