How much does it cost to sell a house in NSW?
For anyone thinking of selling in NSW, here’s an in-depth look at the costs of selling a house including how much you can expect to pay in real estate commission fees.
Some costs of selling a house, such as conveyancing fees, are unavoidable and can vary by method of sale. Here are some of the key costs of selling a house in NSW.
Real estate commission fees in NSW
Commission rates in NSW can range between 2-2.5% in metro areas and 2.5-3.5% in regional areas. Comparing the average commission for a house sold for $1 million in an inner Sydney suburb and a regional city illustrates the potential difference:
- In Redfern, where the average real estate commission rate is 1.93%, commission would be $19,300.
- In Broken Hill, where the average real estate commission rate is 3.47%, commission would be $34,700.
Individual agents generally set their commission rates using one of two main types: fixed and tiered. Fixed commissions are calculated by multiplying the sale price by the commission rate and are the most common. Tiered commissions are performance-based meaning the amount you pay is based on how much your house sells for. If it’s more than the set sale price, the rate will be higher.
While selling privately may seem like a good way to save on real estate agent fees, selling without an agent’s expertise can bring its own costly challenges and is less likely to achieve the best possible price for your property.
Conveyancing costs in NSW
In NSW, you are likely to be charged between $700 and $2,500 for conveyancing, with the average cost around $1,400. Conveyancing fees vary depending on the work performed, type of property, complexity of the transaction and where you’re based. Extra costs can include professional fees, disbursement costs and out-of-pocket expenses.
Auction fees in NSW
Auction fees are separate to your real estate agent commission fees unless explicitly incorporated into your agent costs. Auctioneers can charge anywhere between $400 and $1,000 to sell a house in NSW but it may be higher or lower depending on your area and current market conditions.
You also need to consider the marketing costs associated with selling at auction which can be higher than selling by private treaty. As a guide, the marketing costs for auctioning a $700,000 house can be between $6,000 and $9,000.
Additional costs of selling a house in NSW
As well as the above, there are several voluntary costs to be factored into your overall house selling costs. These are the costs of preparing your home for sale to achieve the best possible sale price.
The cost of marketing a house in NSW can range between $600 and $10,000 but generally represents around 0.5% to 1% of your expected selling price. For example, the expected marketing costs of a $750,000 property are around $3,750 - $7,500. Marketing a house in Sydney can cost anywhere between $4,500 and $10,000, depending on the property.
Kitchen or bathroom renovations can increase property value but don’t have to be extensive to be effective. Minor cosmetic updates such as replacing tapware or light fittings can make a huge difference, costing around $500 - $1,500.
In NSW, hiring a home stager can cost up to $8,000 for a 4 bedroom house, depending on level of service, plus an initial consultation fee between $150 - $500. Professional home staging can add up to 10% to a home’s value and help it sell faster.
Garden maintenance costs in NSW range between $60-$500+, depending on the job and condition of the garden. Typically, garden maintenance services charge around $40 - $60 per hour. A neglected garden can lower the value of a home by 5-15% so a professional tidy up can be worth the expense.
If you're looking to sell your home anytime soon, it's a good idea to calculate the cost of selling your home to avoid any surprises.
Factors that can affect the cost of selling a house in NSW
Real estate fees in NSW can also vary depending on the situation, including:
Properties that are unusual or lack wide appeal are more challenging to sell. An agent who has to work harder to sell your house is likely to charge more for their time and efforts.
Agents may accept a lower commission rate for comparatively expensive properties as their cut of the sale will still constitute a worthwhile amount.
Method of sale (private or auction)
Selling your house at auction is generally more expensive than a private treaty sale. Auctioneer’s fees as well as a more extensive advertising campaign can add significantly to your costs.
Location of property
Real estate commission fees in NSW vary depending on where you live and are generally lower in urban areas. For example, average commission is 2.13% in Wollongong and up to 2.5% across the Illawarra.
Keeping track of all these costs and processes can be overwhelming, but OpenAgent's ultimate property guide can help you stay organised and on top of it all.
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