Most people who ask what it costs to sell are really asking about commission. It's the biggest cost, but it's one of several, and the cheapest agent on paper isn't always the cheapest once the house has sold. Here's the full list.
Agent's commission
In NSW, commission is usually a percentage of the sale price, agreed in writing in the agency agreement before the campaign starts. Comparison sites put the Illawarra average at around two per cent, give or take, plus GST. Some agents charge a flat fee, and some use a tiered rate that rises above a target price.
Whatever the structure, the agency agreement has to state it clearly, including GST, and show an estimate of the total. If something isn't in the agreement, you don't have to pay it.
Marketing
Marketing is normally paid by the seller, separately from commission. It covers photography, floor plans, video and drone, the listing on realestate.com.au and Domain, signboards and any social media or print advertising. Ask for an itemised schedule and be wary of a campaign that costs the same for every home: a two-bedroom unit and a family home on the water don't need the same spend.
Conveyancing
You'll need a conveyancer or solicitor to prepare the contract of sale, which must be ready before the home is advertised, and to handle exchange and settlement. Ask for a fixed fee and what it includes.
The smaller costs
- Mortgage discharge. Your lender charges a fee to release the mortgage at settlement, and possibly a break cost if you're on a fixed rate.
- Preparation. Repairs, painting, gardening, cleaning and styling. Often the best money you'll spend, if it's spent on the right things.
- Certificates and searches. The contract needs certain documents attached, such as a zoning certificate and drainage diagrams; your conveyancer will order them.
- Auction costs. If you sell at auction, the auctioneer's fee.
- Capital gains tax. Usually not payable on your home, but it can be on an investment property. Talk to your accountant before you list.
How to compare agents fairly
Compare what each agent is likely to sell the home for, not just what they'll charge. A difference of half a per cent in commission is a few thousand dollars on a typical Illawarra home; a difference in the sale price can be many times that. Ask each agent for their recent sales of homes like yours, their median days on market and how they'd market your home in particular, then compare the full cost in dollars.
The question isn't what an agent costs. It's what you'll have in your bank account after settlement.
We set out our commission and the full marketing schedule in writing at the appraisal, before you sign anything.
