When you have decided to sell your house, you should have a rough idea of the cost involved. You need to do a lot of homework before deciding on the selling price of the house. It should be calculated beforehand. You can find out the prices for which similar houses in the neighbourhood have been sold recently to get an idea of the selling price of the property. You should not forget to add the costs of mortgage loan, cost of repairs, broker’s commission, and the cost of advertising the sale. You must consider the equity in the property too. Kits are available to help you through the process of selling your property.
Loan Repayments -
Loan repayment is the major factor in considering the selling price of a house. First you should check if there is any penalty for making pre-payment of loan and how much loan is remaining to be repaid. Home equity loan or a lien must be cleared before you close the sale.
Agent Charges -
The broker’s commission is the largest cost of selling your house. Being unregulated, this can go up to 15 percent so it is better to get broker with a reasonable rate. Higher rates will apply if the property value is lesser. You can compare the rates of different real estate agents in your area and select one with a lesser rate. This relieves you from the burden of selling the house on your own and can reduce the cost of sale of your house.
Cost of Advertising -
Since agents consider advertising as an essential part of selling properties, the cost of advertising may range from $1000 to $10000 depending upon the value of the house. Using the services depends on your circumstances and can be discussed with your agent.
- Know the closing costs so that you know how much you should price your house. The most expensive of closing cost is insurance closing. The closing costs are different for different regions and increases proportionately with the price of the property. Taxes, lawyer’s fees and contract charges are also to be considered inclusion in the selling cost of a property. You have to contact many different firms to find the right deal for you. These costs should be settled well in advance.
- To motivate the buyer to clinch the deal the seller of the house should provide some incentives. The cost of moving out furniture and other belongings from the house is necessary as the house must be empty before being handed over to the buyer. You have to find the right transporting company and the cost involved.
Capital Gains Tax and Government Fees -
The cost of selling a house also includes government fees and charges in addition to Capital Gains Tax in some cases. Check if you owe any money to land tax, water and sewerage etc.
Other Costs -
Other costs of selling a house may include fees for document preparation, switching costs and line service fees etc. In some states, pest and termite certificates are necessary. Mortgage discharge fee is applicable in some cases. If you are using a solicitor conveyancing costs should be included. The cost of selling a house in Australia
varies according to where the property is and what services you use.