When it comes to selling your home, you need to know when to spend and when to save. Here are the costs of selling you need to consider.
Selling your home comes with some costs. From renovations and repairs to marketing your property and paying for expert advice from solicitors and real estate agents, you’ll need to carefully plan your selling budget if you want to come out on top.
Overcapitalise on renovations and you’ll risk losing money, but let repairs slide and the market value of your property may take a hit. Knowing how much to spend on marketing your home is another key component of your budget, and getting expert advice from the right solicitor and real estate agent can save you significant money – and headaches – throughout the selling process.
Here’s what you need to consider when setting a selling budget that will return the profits you need:
Many owners choose to renovate their property before listing it on the market. This can be an excellent strategy as long as you keep your renovations targeted to market demands and don’t overcapitalise on works that will not significantly increase the value of your property. A good rule is to keep your renovation budget under 10 per cent of the value of your pre-renovated home to ensure there’s a healthy margin to achieve capital growth.
Making necessary repairs is essential before selling your home. Inviting buyers into a property that is in obvious disrepair will significantly reduce its market value. Don’t expect to be able to hide any major faults, and make any minor repairs before your open house. This is especially important if there is any structural damage to the property that may be revealed in buyers’ building inspections. The exception to the rule, of course, is if you’re selling the property as a knockdown or renovator’s delight.
Whether you choose to employ a real estate agent or not, you’ll still need to pay for the marketing of your property. This can involve anything from a simple online listing and ‘for sale’ sign to the latest digital technology such as interactive floor plans, video tours and microsites. Talk to your real estate agent about the best marketing package for your particular property. They’ll know where and how to target your ideal buyer.
You’ll also need a solicitor or conveyancer to draft a contract and to look after your legal interests during the selling process. Hiring a solicitor or conveyancer to deal directly with the buyer’s legal representation can also save you significant time and stress, and ensure a smoother ride to settlement.
Real estate agent
From setting the right price to attracting qualified buyers and facilitating auctions, working with a local real estate agent connects you with a wealth of expert knowledge that will maximise the value of your home. When selecting an agent, think value over cost. Rather than automatically opting for the lowest commission, consider how the agent proposes to achieve the full market value of your property. The right agent will likely put more money in your pocket over and above their commission.
The following advice is of a general nature and intended as an opinion and broad guide. For all legal, financial or real estate advice you should obtain independent professional advice to do with the specific nature of your circumstances before making any legal, financial or real estate decisions.