Key takeaways for sellers
- Budget for the whole ~2–4% of the sale price, not just commission. Commission is the biggest cost, but marketing, conveyancing, mortgage discharge, adjustments and possibly CGT all add up.
- Some costs are unavoidable, some are your choice. Conveyancing, discharge fees and adjustments are fixed; staging, premium marketing and styling are discretionary.
- Most costs come out of settlement — but not all. Marketing is often paid upfront before listing; commission and conveyancing are usually deducted from your proceeds at settlement.
What are the main costs of selling?
Commission gets all the attention. The line items around it are what catch people out.
| Cost | Mandatory? | When you pay |
|---|---|---|
| Agent commission | If you use an agent | Deducted at settlement |
| Marketing and advertising | Mostly your choice | Often up front, before listing |
| Conveyancing or legal fees | In practice, yes | At settlement |
| Mortgage discharge | If you have a loan | At settlement |
| ATO clearance certificate | Yes | Free — apply before settlement |
| Settlement adjustments | Yes | At settlement |
| Capital gains tax | Only if it isn't your main residence | In your next tax return |
| Staging and styling | Optional | Up front |
Agent commission — usually your largest selling cost. A percentage of the final sale price, negotiable, varying by agent and state (metro tends lower than regional).
Marketing and advertising — often paid on top of commission: photography, floorplans, portal listing fees, signboards, print. Usually a fixed campaign cost, paid upfront or at settlement.
Conveyancing or legal fees — preparing your contract, assembling disclosures, managing settlement. Some firms quote a fixed fee, some bill by the hour, and some quote low then add disbursements at the end. Ask which one you're getting before you sign anything.
Mortgage discharge costs — a lender discharge fee to release its mortgage, plus a government registration fee; check break costs on fixed-rate loans.
Capital gains tax (CGT) — may apply if the property isn't your main residence. Your main residence is generally exempt.
Where it does apply — an investment property, a second home, or a former main residence you didn't live in the whole time — you're taxed on the gain, not the sale price. If you've held the property more than 12 months you're generally entitled to the CGT discount, which halves the gain an individual is taxed on. Your selling costs also come off: commission, legal fees and marketing generally go into the property's cost base and reduce the gain. Check current ATO guidance, or ask your accountant.
Staging and presentation — furniture hire, a garden tidy, minor repairs. Entirely optional, and spent up front in the hope of lifting the price.
Other possible costs — loan break costs, auction/auctioneer fees, repairs and styling, and settlement adjustments (rates/water/body corporate reimbursed or owed).
Most of these costs carry GST — commission, marketing and some disbursements. Quotes usually include it, but it's worth asking, because a quote that excludes it is 10% cheaper than it looks.
Two of these have their own explainers: the ATO clearance certificate and how withholding works are covered in Foreign resident CGT withholding, and lender discharge fees and fixed-rate break costs in Discharging your mortgage.
How do you budget for it?
Get written quotes from more than one agent; ask your conveyancer for a fixed-fee quote plus disbursement estimate up front; add discharge and CGT to work out likely net proceeds.