The overall expenses associated with selling a property may seem minor compared to the sale price, but they can add up significantly.
Often, people talk about "hidden costs," implying fees or charges that are not immediately apparent. However, with competent property conveyancers and agents, most of these costs are transparently disclosed.
Apart from the direct costs of the sale, there are additional expenses that sellers may encounter, such as moving expenses or necessary repairs to ready the property for sale.
While these are sometimes labelled as "hidden costs," they are more accurately described as "unexpected" or "unknown" expenses.
Nonetheless, sellers can still estimate these costs when budgeting.
Here's a breakdown of the various expenses sellers can anticipate, ranging from preparing the property for sale to moving out:
Property Preparation: This may involve tasks like painting, landscaping, or significant renovations.
Marketing Expenses: Typically covered by an estate agent and may include photography, signage, and advertising.
Agent Commission: Usually, a percentage of the selling price, negotiable in many cases.
Conveyancer Fee: Legal fees for document preparation and handling any legal issues.
Bond Cancellation Fees: Settling outstanding amounts and a discharge fee for closing the home loan.
Builders Insurance: Required until property transfer is complete.
Compliance Costs: Certificates of compliance for electrical, gas, and possibly water and pest infestation.
Home Inspection: Recommended for identifying any issues that could delay the sale.
Rates, Taxes, and Levies: Settlement of municipal bills and anticipated usage until transfer.
Capital Gains Tax (CGT): Applicable under certain conditions, such as significant gains on the property.
VAT: If the property is owned by a VAT-registered entity.
Moving Costs and Insurance: Depending on distance and amount of belongings.
Storage Fees: If temporary storage is needed.
Temporary Accommodation: Necessary during the transition period.
New Home Expenses: Additional costs like plumbing adjustments or furnishing purchases.
It's advisable for sellers to budget generously and be mindful of any penalties for non-compliance with legal requirements.
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