When we decide to sell our homes, most of us are naturally focused on getting the best price from the sale, tying up loose ends and arranging our next move. With house prices at record highs, it could be a great time to sell. However, before counting the capital gains you will most likely make from selling your property, you need to budget for the costs that you will incur to see your property sold.
1. Pre-sales preparation
If you haven’t already, declutter your home and gift, sell or store other items that take away from the home. It also goes without saying that you will want to give your house a spring clean. There are a number of cleaning companies that specialise in ‘end of tenancy deep cleans. The costs vary on the size and condition of the home but an average family home of 3 beds with two bathrooms will likely cost between $300-500.
2. Small scale renovations and maintenance
There are a few things that you can do that really improve the look of your house. Consider replacing items like kitchen and shower taps. Repaint hallways and other areas if the paint has dulled or is scuffed. Tip: It’s worth painting as soon as possible so that the paint looks great but does not look / or smell like it was done yesterday.
3. Style the property
We are sure that you have great style. However, there are companies that specialise in styling properties for sale. They will bring fancy furniture, coffee table books, small plants and furniture and a range of touches that will make your house look fantastic. Having your house styled professionals is costly - upwards of $3000, but can make your house more competitive, sell for more and sell faster. Plus, it saves you the hassle of having to do it!
4. Marketing costs
There are a huge array of marketing options available to house sellers - and it can be overwhelming. Generally, a marketing package will be used to attract buyers and therefore will include floor plans, professional photography and videography. Your marketing package will also include online listings of your property on different online platforms. A marketing package can costs upwards of $6000 depending on the value and type of home.
5. Conveyancing costs
Yes, one cant avoid legal costs! However, of all the costs, this is the most essential and unavoidable. Your solicitor or conveyancer is your representative and will prepare the contract of sale and handle the communications and between the buyers representative until the day of settlement. They will ensure all title are transferred and that you best interests are looked after.
To sum it up:
When selling your home, the old adage applies. "You have to spend money to make money". Whilst selling your home in a hot market means that you will undoubtedly get a good price for your property, taking some of these steps will ensure that you get the best price from the sale. Other costs, such as legal conveyancing, are essential steps to ensure that your rights are covered.
Costs will vary depending on the type of home and your situation. Not all costs are necessary. There are some properties that are in such high demand that they will sell without engaging stylists or renovations. Other properties will hugely benefit from superficial renovation before selling. The key is to balance the pros and cons of each expenditure and decide for yourself whether it's worth doing or not.
In next weeks blog, we will look at the 6 more costs that you need to be aware of following the sale of your home, such as agents commission fees, mortgage fees and the dreaded capital gains tax! Stay tuned.
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