What's The Cost of Selling Property?
Selling property involves a range of expenses, some of which are essential, while others are optional but can help maximise your sale price or simplify the process.
Summary of Costs
Advertising & Marketing
This cost category involves two main components: producing the digital assets (daylight and twilight photography, walkthrough video, drone footage, floorplan, virtual tour) and promoting them across multiple channels (Real Estate portals, Social Media, Street Signage, Magazines, Brochures).
While some Real Estate agencies include basic Advertising & Marketing packages in their commission structure, additional premium packages often come at an extra cost to generate more competitive interest, potentially leading to a higher sale price.
Real Estate Agency Commission
The Real Estate Agency commission forms a key portion of the cost of selling property. This is because you are paying for specialist expertise, industry experience, local market knowledge, and access to valuable contacts, techniques and technologies that will help you to sell your house quickly, and at the best price. Your agent will also be your advisor and advocate throughout the process, answering your questions, providing support, and negotiating on your behalf.
In Queensland, there is no standard commission rate. Commission structures and fees vary between agencies and may be charged as a flat fee, a percentage of the sale price, or a tiered commission. For this reason, it is important to discuss and agree on the commission rate and structure upfront, before entering into any agreement.
When you find the right agent and are ready to get started, you must both complete an Appointment To Act Form (Link here). This is a service agreement that sets out the rights and obligations of both parties – you and your agent. Their commission, fees and expenses should be clearly laid out in this form, and you should make sure that you understand how much you are likely to pay, and when. After the terms have been discussed and agreed upon, the agreement must be signed by both parties.
Solicitor & Legal Fees
Engaging a solicitor to manage the legal transfer of ownership helps ensure the process is handled correctly and reduces the risk of costly mistakes. Fees vary between providers, so it’s worth comparing services and rates and inclusions before choosing one. That is, does their quote cover PEXA Settlement fees, Titles Queensland registration fees, Title Search fee, and any other third-party disbursements?
Also, under Queensland legislation, sellers are required to provide prospective buyers with a Seller Disclosure Statement (Form 2) before the contract of sale is signed. This document contains important information about the property, including title details and other prescribed disclosures, and is typically prepared by the seller’s solicitor at an additional cost.
Body Corporate and/or Council Rates Adjustment
As council rates and strata fees are typically paid quarterly, there may be an outstanding amount payable, calculated proportionally from the date of your last payment to the date of settlement. This adjustment is usually handled by your solicitor/conveyancer before the property actually changes hands.
Mortgage Discharge Fee
Australian lenders generally charge a Mortgage Discharge fee (sometimes also known as Loan Settlement fee) to cover administrative and legal costs for removing their interest from your property title. Mortgage discharge costs vary by lender, with some institutions charging no fee or offering to waive it.
Capital Gains Tax
Capital Gains Tax will apply to any profits made from selling a rental property, holiday house or vacant land.
Make sure to factor paying CGT into your budget, while also checking if any relevant CGT exemptions apply to your circumstances. Below are two of the most commonly claimed CGT exemptions:
- Individuals or trust beneficiaries get 50% CGT discount if the property was help for more than 12 months. (More info from ATO here)
- Individuals or trust beneficiaries get full CGT exemption if the property was once their Principal Place of Residence, the property has been used to generate income for less than 6 years and they haven’t treated any other property as main residence during this time. (More info from ATO here)
Pre-sale Maintenance, Improvements and Styling
Preparing your property for sale, and getting it in the best condition to attract buyers, is likely to involve some financial outlay. This might sound counter-intuitive, but a little money spent on maintenance, improvements and home styling can translate into a premium sale price.
Start by addressing any visible issues that could raise concerns for buyers, such as maintenance problems, worn finishes, or signs of damage. Refreshing interiors with neutral paint, fixing minor defects, and ensuring the property is clean and well-presented can dramatically improve how the home is perceived. Outdoor spaces are equally important—simple landscaping and gardening can create a positive first impression before buyers even step inside.
Depending on the condition of your property, you may be able to do the work yourself or you may need or prefer to pay for external contractors. An experience real estate agent will be able to point out which works can be prioritised and which ones can be left for the future owners.
Intentionally styling your home for marketing materials and buyer inspections plays a powerful role in attracting interest to your property. You can make small changes to de-clutter, de-personalise and re-arrange the setup of the property even while still living in the home, but if you’re moving out before selling you can make an even bigger impact with a furniture package setup. We work with you to style and present your home at its best.
Removalist
Moving costs are often overlooked when selling a home. Most people hire a removals company to relocate furniture and personal items, so be sure to factor in these fees. Rates may be fixed or hourly—clarify the arrangement beforehand.