How Much Does It Cost to Sell a House?

A successful property sale doesn’t just happen on its own. Behind every sold sticker you see is a carefully planned marketing campaign designed to maximise its appeal and attract the right buyers. From maintenance to photography, every step plays a role in the outcome.

Understanding the various costs involved in selling your home is key to making informed decisions.

Some expenses are unavoidable, such as conveyancer and solicitor fees. Others, such as styling, are optional and depend on the type of property. There may be ways to save money, such as asking friends and family to help with moving.

To navigate the financial side of selling a property, we’ve put together this complete guide so you can plan with confidence.

What does it cost to sell a house overall?

Imagine if finding a new owner for your home was as simple as putting out a ‘for sale’ sign and waiting for the offers to roll in from buyers. The reality is that without a broader marketing campaign and professional advice, you could limit your pool of potential purchasers and the chance of a better result.

So, what kind of costs can you expect when selling your home? Let’s break it down:

• Agent Commission – 2 per cent to 3 per cent of the total sale price, depending on your location

• Legal/Conveyancing – $1500 to $3000, depending on complexity

• Marketing – Allow 1 per cent of your asking price – this includes online advertising, professional photography, signage and copywriting

• House preparation - $100 to $20,000, depending on how much work is needed

• Property styling – from $1,000, depending on the size of the property, type of dwelling and whether a partial or full staging package is required

• Mortgage discharge fees - $0 to $1000, depending on lender

• Moving costs - $200 to $5,000, depending on whether it is local or interstate

It is estimated that selling a home in Australia typically costs between 1.5 and 3.5 per cent of its total value. For example, if a property is worth $800,000, a budget of around $20,000 will cover expected expenses, based on 2.5 per cent of the final sale price.

Real estate agent commission explained

In its simplest form, a real estate commission is the percentage of the final sale price paid to the agent who helps sell your property.

Real estate agents are experts in their field and will be with you throughout the entire selling process. They run open homes and private inspections, and ensure your home is presented in the best possible light.

Your chosen agent will also provide detailed market analysis, vet potential purchasers and handle paperwork. Importantly, they often maintain a database of buyers and handle negotiations to secure the highest possible price for you.

Before signing a contract of sale, the exact real estate commission will be discussed and agreed upon. This way, the seller knows exactly how much they will need to pay the agent once the property transaction has been finalised.

There are a number of ways commission can be paid, including a flat fee or tiered commission. You find more information about the different payment structures here.

 LJ Hooker operates as a franchise, so our agents set their commission rates individually depending on their market. 

Marketing costs when selling a property

Marketing allows a property to be showcased to the widest possible audience by highlighting the features that make it stand out from the crowd.

Remember, the more people who see your property, the better your chances of generating strong interest, creating competition and ultimately achieving an outstanding sale price.

The success of an LJ Hooker marketing campaign is leveraging the full range of marketing tools available to capture attention. LJ Hooker also has a marketing ecosystem, Acceler8. Acceler8 is an industry-leading suite of marketing tools, purpose-built to help drive results faster and more efficiently. When meeting with an agent you are considering to list your property, ensure you are considering whether they have a strong, integrated marketing approach to market your property. You can find out more information about the multitude of ways to promote your property here.

Ideally, you want to evoke an emotional response that helps purchasers envision living in the home. The best way to achieve this is through professional photography, video, copywriting and styling. A campaign may include digital brochures, listings on popular real estate portals, advertising, social media, signboards, and even drone footage.

If the property is likely to be suitable for a future knock-down-rebuild project, the promotion material may highlight the location, block size and development potential (STCA).

While no outcome can be guaranteed, a greater investment in marketing can improve your chances of finding that right buyer who is prepared to pay the right price. Costs incurred for marketing, such as photography and listing on property portals, remain payable even if the property doesn’t sell.

Conveyancing and legal fees

As the sale of a property is a legally binding transaction, it is important to seek professional advice from a qualified conveyancer or solicitor to ensure all requirements are met.

For a straightforward property sale, a conveyancer is often a cost-effective and efficient option. They can review and prepare contracts, manage the transfer of ownership, conduct property searches, liaise with the other party’s representation and ensure settlement proceeds smoothly. Some conveyancers will charge a flat fee, while others may have a sliding fee based on the property's sale price.

If the transaction requires more complex advice, it could be better to appoint a solicitor. This is valuable if there are any disputes, deceased estates, property owned through a trust or company, complex contract conditions, or if any legal issues arise from the sale.

If you want to find out more about why you may need a conveyancer or solicitor when selling a property, click here.

Property styling and preparation costs

Staging your property to sell is the best way to attract buyer attention, and sell quickly. It is a key strategy for achieving a higher sale price.

Remember, you don’t get a second chance to make a positive first impression when selling your home. The aim is for buyers to feel a connection from the moment they step through the front door.

Your real estate agent can put you in touch with a stylist who will work their magic and revamp the look and feel of your home. This can be achieved by using hired pieces and depersonalising the space, for example, by removing trinkets and family photos.

Expect to pay anywhere from $1800 to $8000, which will also include furniture hire, linen, cushions, lamps and artwork for the duration of your marketing campaign.

Rather than staging every room, one way to save money is to focus on key areas that are likely to influence a buyer, such as the living area, kitchen and master bedroom. A stylist may also utilise your own furniture, which can also reduce costs. If you want to find out how to make buyers fall in love on the first inspection click here.

How much does a property valuation cost?

It is essential to know your home’s value to determine an appropriate price range and plan your future move. This can be done in two ways.

You can obtain a standard residential valuation from a certified practising valuer for a cost of between $300 to $600. They will factor in the condition of the property, land size, number of bedrooms, fixtures and fittings when inspecting a home. Location, zoning, any planning restrictions and access to amenities are also considered. They usually use three methods:

• Direct comparison

• Capitalisation

• Summation

A property appraisal is conducted by a local real estate agent and includes an informed assessment of your property’s value based on recent comparable sales of similar-sized homes.

LJ Hooker provides free expert appraisals to offer insight into your home's current market value and how to achieve the best possible price. Their research may also be influenced by conversations with buyers looking to purchase in your area.

Are there any hidden costs when selling?

Knowing what to expect is key to minimising any financial stress when listing your home. If you have a good step-by-step understanding of the selling process, then you are unlikely to be caught out by surprise expenses. Mortgage discharge takes 14-21 days, so factor this in your timeline and budget. You will need to keep making repayments until settlement. Property investors, may also need to budget in capital gains tax and land tax payments.

How to reduce the cost of selling a house

It may take time and effort, but being strategic about where you spend can save you money while still maximising your return.

• DIY property preparation – Handle any minor maintenance issue yourself, such as high-pressure hosing driveways, fixing chipped paint and cleaning windows. Always outsource any electrical or plumbing repairs to the professionals.

• Thrifty home staging – Rearrange your own furniture to make rooms feel larger and remove any bulky items. Declutter your space by packing away any personal items such as trophies, awards and photos.

• Negotiate commission – Before signing, discuss rates with your real estate agent and explore different options for structuring commission.

• Focus on high-impact marketing– A streamlined but targeted approach may help to find a buyer.

• Storage – Ask friends and family if you can store any excess furniture or items in their garage during your marketing campaign.

• Moving costs – Look for old removal boxes on second-hand websites. Utilise removal services only for heavy items, such as the refrigerator and the washing machine.

Is it worth paying higher agent fees?

Some agents are willing to negotiate their commission to win business. While this may appear to be a good thing, sellers should be wary. The best agent is rarely the one with the lowest commission rate. With less in their pocket, you need to ask yourself if they will go the extra mile on your behalf.

You want to find an experienced and caring agent who will advocate on your behalf.

The commission paid to the real estate agent is their reward for taking on the sale of your home. It provides an incentive to work hard to get the deal done. A quality agent wants to see the property as sold as much as you do and has a detailed understanding of the market and the best strategies.

It is important to remember that if the property isn’t sold, then no commission is paid despite their effort. You will still need to pay for marketing and advertising, as well as any auctioneer fees. If an exclusive listing agreement is cancelled before the agreed deadline, you may also be charged a penalty.

Your agent may also suggest a method of sale that is better suited for your property and market. Some such as an auction campaign come with some additional costs. You can find out more here.

Get an accurate selling cost estimate with your local LJ Hooker agent

If you are considering downsizing, upgrading or listing your investment property for sale, the best place to start is by booking a free, non-obligation property appraisal through LJ Hooker. It is easy to arrange – just follow these simple steps:

• Step 1 – Book your property appraisal - simply fill in the form on our LJ Hooker Property Appraisal or contact your local office.

• Step 2 – Relax about the state of your home – our agents are experts at seeing past household clutter. They are more interested in the property's size, number of bedrooms, key features, and overall condition.

• Step 3 – The real estate agent comes for a home visit – they will have a good look around your property and ask some questions about any renovation or maintenance. This is also a chance for you to ask any questions, such as their experience and market knowledge.

• Step 4 – Property appraisal and supporting documentation – the agent will provide a figure they think is achievable in the current market. This includes supporting documentation of sales recorded in the past 90 days and wider market trends.

Your LJ Hooker may also identify areas of your property that could be improved to boost sales results while staying within your budget.