How much does it cost to sell your house? [Hidden costs revealed]

It’s easy to focus on how much profit you’ll make when you sell your house.

However, house sellers are often surprised by the number of hidden costs they have to pay.

These costs start to add up even before your house hits the market.

Of course, you probably expect to pay a real estate agent’s commission. That’s usually around 3% of the final sale price. But that’s not the only cost you’ll have to pay.

When you add everything up, you’ll likely spend thousands when you sell your house.

In this article, you’ll learn what the main costs are for getting your house listed, and when you have to pay them.

#1 – Real estate commission

Cost: around 3%+ of the final sale price

When do I pay them: After your property sells

Most people use a real estate agent to sell their house. They charge a commission – a percentage of the final sale price.

It’s often hard to figure out how much a real estate agent will charge. That’s because they might charge 4% on the first few hundred thousand dollars.

Then, they might charge 2% on anything above that.

But don’t forget: most real estate agents will quote you their fee, excluding GST. So multiply whatever fee they tell you by 1.15. More often than not, that’s the actual fee.

Commission rates vary based on the agency you use. And every agency’s tiering (of when the lower fee kicks in) is different.

So, if you were to sell a $1 million house, here are what different agencies would charge:

#2 – Getting the listing live (marketing, photos, videos and Trade Me fees)

Cost: around $3.5k

When do I pay them: Upfront

The first step is to get your house listed online.

These days buyers expect your listing to have high-quality photos, videos, and even drone shots. That’s the standard you need to meet to get a premium price.

Real estate agents often bundle these services into a marketing package.

This package usually includes:

• professional photography
• video tours
• and a listing on popular real estate websites like Trade Me (where a premium listing can cost up to $2,000)

This can cost anywhere from $1.7k - $3.5k, depending on the extent of the marketing.

A more expensive property will tend to spend more on marketing. This includes the sign board outside your house too.

This cost is paid regardless of whether your house sells, and you usually pay for that upfront – before the listing goes live.

#3 – Staging

Cost: $2-4k

When do I pay them: Upfront – before the furniture goes into the property

Next, you might like to consider staging.

Staging is a popular strategy to make your home more appealing to potential buyers.

It involves temporarily furnishing your home with modern furniture and décor.

This will often replace your existing belongings, or you could stage a property to fill an empty house. That’s because empty areas often feel small.

From experience, it’s hard to comprehend how a bed will fit in some smaller bedrooms if it’s empty. But once you see the bed or the couch … it’s easier to visualise living there.

Staging can range from $2,000 to $4,000, depending on the size of your home and the amount of furniture required. This price is for a 4-week marketing campaign.

But, if your house doesn’t sell in 4 weeks you’ll need to pay more to keep the furniture in there.

At the moment, it’s taking about 50 days (2 months) to sell a house, so you’re probably going to need it for longer. This means you might need to pay extra, potentially adding another $500 per week.

It could be an idea to negotiate a good price upfront.

Remember, you’ll want to take your marketing photos once the furniture is in there. And you want to take your photos when it’s not raining.

So, you’ll have to allow a few days before your listing goes live.

Staging your house isn’t compulsory, but most agents recommend it.

#4 – Building Reports/LIM (and then repairs)

Cost: $700-$1,000 + GST

Repair costs: $0 - $10k+

When: Upfront

Agents often recommend you get a building report before you list your house. This is to identify issues that could deter buyers.

That way, you can get ahead of buyers’ concerns before they become a concern. We call this vanguarding.

A building report usually costs between $700 and $1,000.

If the report uncovers problems, you might need to invest in repairs before listing your home.

Common repairs include re-carpeting, repainting, or fixing minor defects.

These costs can quickly add up. Some homeowners spend upwards of $10,000 to make their home market-ready.

While it’s hard to put a number on your repairs ... I almost guarantee they will be cheaper than what a buyer thinks they will be.

For instance, that re-carpeted house cost you $10k, but it’s likely a buyer would want to knock $20k off the asking price to cover the same costs.

The other risk is if the buyer finds something wrong with your property, they are going to be more cautious about it. The seeds of doubt have been sewn.

And the real estate agent has to tell all interested buyers if they find an issue. So, it’s best practice to get ahead of this first.

#5 – Additional Costs

Cost: $0-$2,300

When: Upfront

Beyond major expenses there are several smaller costs to consider:

1. Property Cleaning

A deep clean can make your home shine, but it may cost you around $500 to $1,000, depending on the size of your home.

2. Gardening

If your garden needs a spruce, you won’t get much change from $500.

3. Washing

Cleaning the exterior of your home can cost between $500 and $800.

Do I have to pay these costs?

No, you don’t have to pay for all of the things mentioned on the list.

Some are unavoidable, such as marketing costs and real estate fees. But you could cut costs by doing your own cleaning, or water-blasting the house.

There is one thing to be aware of once you’ve invested in these upfront costs: it can be tempting to accept a lower offer just to recoup your “investment”.

Just know, these costs are part of selling a home. They should be viewed as an investment in getting the best possible price.

Is it worth paying all these costs?

Selling a home involves more than just finding a buyer.

The process requires careful planning and budgeting for a range of expenses ... that can easily total several thousand dollars.

By understanding these costs upfront, you can better prepare for the sale and avoid unwelcome surprises along the way.