When it comes to the sale of your home, First National Real Estate Croydon is the leading agent in Croydon and we’re frequently asked, how much to real estate agents charge to sell a home.

Regardless of whether you use a real estate agent or decide to sell your property yourself, there are some costs involved. Having a good understanding of these costs, before you commit to the sale, is important as it should be part of your budget when calculating your ideal sale price.

The big three 

There are three unavoidable costs that you will need to cover, if selling your house through a real estate agent. They are conveyancing fees, marketing expenses and the agent’s fees and commissions.

Conveyancing is done by a conveyancer or solicitor and is an essential requirement of a property sale. It involves the legal handover of the property between owners and makes sure all boxes are ticked and processes enacted appropriately. Costs can vary from state to state but won’t likely be less than $1,000 and can be up to $3,000 in some cases.

Marketing costs can vary widely depending on the strategy the agency you choose uses. Features in online listings and in-office materials will be considerably cheaper than billboards and paid advertorials in property features in the media. It’s worth discussing marketing expenses when negotiating the agent’s fees as some agencies will include marketing costs in the overall service offering while others will charge it separately.

Finally, an agent’s selling fee is negotiated between you and the agent. Fees are no longer regulated in Australian but most agents charge between 2% and 3%, depending on the likely price range, and then commissions or bonuses are agreed upon on a case-by-case basis. For example, bonuses might be calculated based on the sale price achieved – with higher bonuses at different incremental levels above an agreed expectation of price.

The DIY Option

There is another path you can take that is perceived to be ‘cheaper’, however the devil or hidden ‘costs’ are in the detail. Some vendors choose to sell their property themselves to ‘save’ on real estate agents’ fees and marketing costs and keep more of the proceeds from the sale in their pocket. This, however, is not for everyone – if you care about making sure you achieve full market value, then selling it yourself will need to approached with diligence, a lot of research, and strategic thinking.

It’s true that if you sell the property yourself, you keep what would have been agent’s fees in your pocket. You can also cut back considerably on marketing expenses. However, it’s important to keep in mind that the final sale price you may get as representative for the property, could be considerably less than if an experienced agent had done the job for you.

Consider the reach of a handmade sign on the notice board at the local supermarket, against Hyperlocal advertising or a featured listing in online marketplace, that exists specifically for the audience you are reaching out too – property hunters.

Don’t underestimate the skills and experience an investment in a real estate professional offers. If the agent closes the deal on a sale price that is beyond your dreams, even after budgeted marketing expenses, you really did get a better deal in the end.

All the Incidentals

There are a bunch of incidental costs that come with selling a house too – many of which are overlooked by homeowners when budgeting to determine their listing price. From home staging to contracting a gardener to tidy up, building and pest inspections to rental furniture and art for the inspection period, fresh flowers for open homes, not to mention the cleaners, painters, handymen and movers. All of these play their part in helping you transition your property from your home to someone else’s latest purchase. These costs add up and, if not budgeted for, you can end up hundreds, sometimes thousands of dollars more out of pocket than you expected.

As a vendor, it’s crucial you understand all the costs involved before you sell and make good decisions around the purchases you’ll need to make. Don’t choose a real estate agent, or a campaign, a conveyancer or a contractor, on price alone. Your choice should be about the best possible person for the job and if you can develop a mindset that sees costs as investments in your desired outcome, you will be much better at making the best choice possible. Good investments will always pay off in the end after all.  

Let’s Talk Today

At First National Real Estate Croydon, we’re passionate about real estate and helping our clients achieve their goals. Don’t hesitate to call for free advice about your home’s value, renovations you’re planning, management of your investment property, or help coming to an understanding of government grants available to First Home Buyers.

If you’d like an appraisal, complete our request form or give us a call on 02 9744 0070.

DISCLAIMER

The following advice is of a general nature only and intended as a broad guide. The advice should not be regarded as legal, financial or real estate advice. You should make your own inquiries and obtain independent professional advice tailored to your specific circumstances before making any legal, financial or real estate decisions.