Don't Get Stung: The Hidden Costs of Selling Your Home.

Selling your home can be an exciting time. But don't forget that in reality, it actually costs money to do it!

While the focus is usually on profit, the fact is, there are plenty of hidden costs associated with selling property that can add up very quickly.

The good news? Forewarned is forearmed. And while these expenses may seem daunting, they can actually help boost your bottom line.

That’s because knowing about any costs upfront can help you prepare better for the process, make informed decisions and avoid any nasty surprises, so you can make the best decisions when it comes to pricing and negotiations.

So here’s a rundown of the hidden expenses you need to be aware of when selling your home.

Agent Commission: Partnering for Profit

Hiring a real estate agent can be a game-changer when it comes to selling your home. But it comes at a cost.

Agent commissions are often a percentage of the sale price, and range anywhere from 2% to 6%.

But while this fee can seem steep, it’s important to remember what you get for your cash.

When you hire a real estate agent, you're paying for expertise, and partnering with a professional who can help you navigate the complex world of home sales. Someone who will handle the entire selling process for you, including marketing, advertising and liaising with potential buyers.

Experienced real estate agents also have access to a huge network of potential buyers, can negotiate on your behalf to secure a higher sale price and help you sell your home faster.

So rather than looking at this as a cost, it pays to see it as an investment in your success that will ultimately put more money in your pocket.

Conveyancer Fees: Ensure a Smooth Sale

Selling a home involves a lot of legal jargon.

So hiring a conveyancer to handle that side of it is always a good idea.

And while it might seem like an unnecessary expense, they're an essential investment to ensure a smooth sale and avoid any costly mistakes that could derail your sale.

A conveyancer will do all the legal paperwork, from contracts and title searches, to undertaking government searches and preparing all the necessary legal paperwork required to transfer legal ownership of your property.

Put simply, they make sure you meet all the legal obligations involved in selling a property.

But conveyancers too come at a cost. So it pays to factor it in, when doing your budget.

Because what value can you put on peace-of-mind?

Marketing: Showcase Your Home

When it comes to selling your home, often marketing isn’t the first thing you think about.

That’s because your focus is usually on what price you might get for your property, not how you’re going to achieve it.

But take a closer look, and what do most successful home sales have in common? High quality marketing.

The truth is, you can't sell your home without attracting potential buyers. And to do that, you need to market and advertise your property.

And what’s the best way to do it?

Professional photography, virtual tours, aspirational property styling, engaging copy and online listings

And while these things all cost money (and may seem extravagant), they can make a huge difference in the price you achieve for your home - and help it sell faster.

Plus, the reality is, when you compare it to the value of your home, it actually doesn’t cost much to run an effective marketing campaign.

In fact, good results can be achieved from a tiny budget of just 0.5% - 1% of your home’s value. And if it yields even just $10-15K more? Winning!

Remember, buyers want - and need - to know why your property is worth considering.

If your home’s kept secret, it’ll never attract the attention - or the price - it deserves. So invest in the right marketing and it’s money well spent!

Building & Pest Inspections: A Small Price To Pay

Before putting your home on the market, it's important to identify any issues that may affect the sale price of your home.

How do you do that?

Hire a both a building and pest inspector to go over your property with a fine tooth comb.

These professionals uncover any issues that need to be addressed early, so you’ll avoid any nasty surprises down the track.

Realistically? Nobody wants to buy a home with issues, so interested buyers are going to arrange these checks prior to making an offer anyway.

But if you know about things before your home hits the market, you’ve got a chance to fix them and avoid low-ball offers - or worse - scaring buyers off altogether.

So while these inspections may seem like a hassle - and an unnecessary expense - they can actually work in your favour.

Repairs & Renovations: Maximising Your Home's Value

While repairs and renovations may be the last thing on your mind when selling your home (you’re not going to be living there anymore, right?), it pays to be prepared to invest in this area, especially if your home is on the older side.

Why? Because fixing your home up can reap big rewards.

Smaller updates - such as fresh paint or new fixtures - can make a huge difference to potential buyers’ perceptions, and attract higher bids.

On the flip-side, tackling repairs before you list your home for sale can help avoid low-ball offers and onerous negotiations.

Although minor repairs might not set you back too much, if there are multiple issues or larger projects that need doing, it can eat into your budget fast.

So be strategic, budget for the most important repairs - and maximise your sale price while doing it.

Capital Gains Tax: The Taxman’s Cut

It’s fair to assume that most people plan to sell their home for a profit.

But have you considered capital gains tax?

If making a profit on your sale is likely, be prepared to pay capital gains tax.

But don’t let it scare you - yet.

The amount you'll pay will depend on the final sale price, the type of property it is and how long you owned it.

That’s why it’s super important to chat with a tax professional, who can explain everything and help you plan accordingly.

And while they will charge for their services too, they’ll more than make up for it by helping minimise the impact on your bottom line.

Don’t forget about Strata Fees!

If you're selling a strata property, it’s also important to remember that you'll likely need to pay strata fees until the sale is finalised.

And apart from the insurance and management portion, these fees can include things like standard maintenance and repair of shared areas.

So budget for them upfront.

There’s no denying that selling your home is a big decision.

But if you go into it with blinkers on, it could be a costly one too.

So make sure you’ve covered all bases, factored in as many foreseeable costs as possible and spent some time preparing to avoid any surprises.

And by partnering with the right professionals, you’ll be able to turn every cost into an opportunity to supercharge those profits!

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As property experts with over 21+ years combined experience in buying, selling and managing property in Adelaide, We Connect Property are ready and waiting to offer expert guidance and support when you need it most, and answer all your questions about selling your property.

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And if you’re just getting started, or looking for valuable property investment, buying or selling tips, tricks and advice?

Check out these other handy articles on our blog:

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DISCLAIMER: All recommendations made by We Connect Property are general in nature and not to be relied upon as legal or financial advice. To ensure accuracy, we always strongly recommend seeking independent, professional advice tailored to your specific situation before making any investment or financial decisions.