How much does it cost to sell a house in Tasmania?
For anyone thinking of selling a house in Tasmania, you may be wondering how much it costs to sell a house in the current market. This guide breaks down what fees are involved in selling a house in the Apple Isle, including typical real estate commission and conveyancing costs.
Costs to consider when selling your house in Tasmania
These are the key costs that need to be factored into your budget when selling a house in Tasmania:
Under the right circumstances, selling your house at auction can help achieve a higher sale price than a private sale. If you decide to go to auction, you’ll need a good auctioneer. A good auctioneer is a key ingredient for a successful auction, and their skills can mean the difference between a great sale and a so-so one – or no sale at all.
Most real estate agents aren’t registered auctioneers, so you’ll likely need to factor in the cost of an auctioneer as separate to your real estate agent fees. In Tasmania, auctioneer’s fees can range between $200 to $1,000, depending on their experience, location and market conditions. Some agents bundle the cost of an auctioneer into their fees – this is the case if an auction service is advertised as “free.” When you’re considering selling at auction, it's a good idea to clarify with your agent if the service will be included or is an extra cost.
Auctions also have a “hidden” cost you should be aware of – marketing and advertising. To attract plenty of buyers for a competitive auction, you need to have an extensive marketing campaign in place before the big day. Costs for advertising such as signage and website listings all add up. Typically, the cost of marketing a $700,000 house for auction can be between $6,000 and $9,000, close to or more than the higher end of marketing a home for a private sale.
Conveyancing costs in Tasmania
In Tasmania, conveyancing costs are in line with other Australian states, ranging between $500 and $2,200. A host of factors can influence how much you pay for conveyancing, including:
- How much work needs to be done
- Who you use
- The type of property you’re selling
- The complexity of the transaction
- Where you’re located
Conveyancers set their own fees and usually offer a flat fee for their services. Solicitors, on the other hand, are more likely to charge by the hour. Importantly, these flat or hourly fees don’t include the additional expenses that are incurred through conveyancing, such as search fees, transfer fees, transaction fees and your conveyancer’s out-of-pocket expenses.
Search fees, also known as disbursement costs, are charged by Government departments and other third parties to provide the legally necessary reports your conveyancer needs to complete your property sale. A title search, council rates search and land tax search are all mandatory when selling a house in Tasmania, and each search incurs its own fee.
You’ll also be charged a transfer fee to transfer your property to the buyer as well as a mortgage discharge fee if you have a mortgage on the property. All up, these disbursements can cost a seller around $400, but this can vary depending on the type of property you’re selling.
A conveyancer’s quote should breakdown what services are provided and how much it will cost – if in doubt, ask what is and isn’t included in their fee. When choosing a conveyancer or solicitor, how much they charge should also be weighed up against their experience, reputation and level of service they offer.
If you're looking to sell your home anytime soon, it's a good idea to calculate the cost of selling your home to help you budget accordingly.
Marketing costs to sell a house in Tasmania are lower than in most other states, costing between $400 to $4,000. The general recommendation is sellers spend between 0.5% to 1% of their property’s total value on marketing and advertising. Some agents offer discounted marketing campaigns, but these are unlikely to have the reach or pull needed to generate buzz around your property. Investing in a comprehensive marketing campaign is a good strategy for finding interested buyers and achieving a great sale price.
Additional costs and why these costs are also worth investing into
Putting aside money in your budget to prepare your house for sale can pay dividends come sale time. Presentation counts in real estate – buyers are less likely to favour a property they think will cost them in maintenance and repairs. On the other hand, a clean, well-presented home in good condition will feel ready to move into, and potentially attract higher offers.
Some tried-and-tested preparations for selling for the highest possible price are:
- House cleaning, from around $50/hr
- Repairs such as fixing leaky taps or replacing broken fixtures
- Renovations such as bathroom or kitchen upgrades
- Garden maintenance
- Professional home staging
How much you spend on preparing your home for sale depends on your budget and the condition of your property. Minor cosmetic updates, such as replacing outmoded tapware or paint jobs, are cost-effective and can add to your home’s value, often costing less than $2,000.
It's easy to lose track of everything you need to do when selling your property, but OpenAgent's ultimate property guide can help you stay organised and on top of it all.
Other factors that can alter the cost of selling a house in Tasmania
How much it costs to sell a house can also vary due to individual factors. For instance, real estate commission fees may be higher or lower, depending on:
Real estate agents are likely to charge more for their time and effort if a property is difficult to sell. Unusual properties or ones that are only likely to appeal to a small group of buyers fall into this category.
Method of sale
Selling your house via auction rather than private sale is typically more expensive due to the additional auctioneer’s fees and higher marketing costs.
When negotiating your agent’s fee, it helps to have a higher value property. Agents are more likely to accept a lower rate if your sale price will still ensure them a healthy fee. On the other hand, agents aren’t likely to negotiate much on their rate for a lower value home.
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