The un­ex­pected costs of sell­ing your home

The Coffs Coast Advocate - - REAL ESTATE -

Whether you’re down­siz­ing, chas­ing a sea change, or mov­ing to a fam­ily friendly neigh­bour­hood, putting your prop­erty on the mar­ket is a timely and costly process. If you’ve de­cided to sell up, you need to un­der­stand and pre­pare for the costs of sell­ing to avoid any fi­nan­cial fric­tion or de­lays that may oc­cur along the way.

Get­ting your prop­erty sale-ready and pay­ing agent fees aren’t the only ex­penses you need to bud­get for.

To nav­i­gate the sell­ing process as smoothly as pos­si­ble, con­sider the com­plete range of costs you’ll en­counter and de­cide how you’ll man­age or mit­i­gate these. Bank charges While the days of exit fees are long over if you’re pay­ing out your loan early, your bank may still charge you a dis­charge or set­tle­ment fee to cover the ad­min­is­tra­tive costs of re­leas­ing your mort­gage.

Set­tle­ment fees are around $150–$400 de­pend­ing on the lender and the prod­uct type, so be sure to add this one to your bud­get. Con­veyanc­ing costs There’s a fair amount of pa­per­work that needs to be com­pleted prior to sell­ing your home, so it’s likely you’ll need to hire a con­veyancer.

From or­gan­is­ing mort­gage doc­u­ments and the con­tract of sale to car­ry­ing out a ti­tle search on your be­half, a con­veyancer en­sures that ev­ery­thing in­volved in the sell­ing process runs smoothly.

De­pend­ing on the na­ture and com­plex­ity of the work re­quired, you should bud­get around $1000–$2500 for con­veyanc­ing ser­vices. To min­imise this cost, source sev­eral quotes from dif­fer­ent con­veyanc­ing com­pa­nies to en­sure you’re get­ting a good price. Removalist charges The cost of trans­fer­ring your be­long­ings from one prop­erty to an­other is one that’s prob­a­bly es­caped you, but it’s one that you need to be aware of. Of course, if you have a friend or fam­ily mem­ber with a large ve­hi­cle, you can save on this cost by do­ing it your­self, but for many of us (and es­pe­cially if you’re mov­ing in­ter­state), you’ll need to hire a removalist.

The av­er­age removalist price for mov­ing prop­erty in­ter­state ranges from $3500 to $4500. Sale method and ad­ver­tis­ing costs De­pend­ing on your sale method, such as whether you’ll sell via auc­tion or pri­vate treaty, you’ll need to advertise to put your prop­erty on the mar­ket. The commission charged by your real es­tate agent is nor­mally cal­cu­lated as a per­cent­age of the prop­erty sale price, on av­er­age, around 2–3%. Pre­sen­ta­tion costs Pre­par­ing your home for sale to at­tract fu­ture buy­ers can be ex­pen­sive, de­pend­ing on the ex­ist­ing con­di­tion of your prop­erty.

For in­stance, if you need to con­duct mi­nor up­grades such as re­plac­ing floor­ing or in­vest­ing in new kitchen ap­pli­ances, this could set you back a few thou­sand dol­lars.

On the other hand, if you just want to spruce up your kerb ap­peal by in­vest­ing in a new let­ter box or clean­ing your gut­ters, it may only cost you a few hun­dred dol­lars. You’ll also want to clean your prop­erty prior to open in­spec­tion, but you can save money by do­ing it your­self.

Sell­ing your home can be a daunt­ing task, but as long as you bud­get care­fully and pre­pare for the costs in­volved, you should be able to nav­i­gate the process as smoothly as pos­si­ble. - from ope­na­

Satur­day, March 18, 2017

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