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expense In Real Estate

Know the Hidden Expense When Selling Your Home

When selling your apartment, you know that you need to pay your real estate agent’s commission. But that’s not the only expense you have to settle. There are several other costs to consider when choosing the agent to market your property. Understanding the fees up front will help you ultimately bring home more dollars. Here are the standard expenses with some rough estimates you need to know.

Hidden expense 1: your agent’s commission

The commission is one of the largest expenses, and it is about 3-4% of sales price up to $300k, 2.5% of selling price upward. It’s important to remember that the commission percentage is +GST. An exception to that rule is if you are an international owner and can prove residence in another county – if so, no GST is charged on the sale.

Hidden expense 2: marketing fees

The next category is marketing. The success or failure of your sale depends on a lot on how well it is marketed. Expect about $1000+ for marketing on most properties, up to $2-3K for homes valued over a million dollars.

Hidden expense 3: lawyer fees

We can’t forget lawyer fees. You will need a lawyer to handle conveyancing at the least. If you are not dispatching a mortgage, this may cost between $800 and $1,000. If you do need to send a mortgage, that figure jumps to around $1,300. And if there are other complicating factors to the sale, conveyancing could cost up to $2,000. Other charges from your lawyer will include a precontract or disclosure at approximately $250, and any hourly fees for consultation on the agreement you sign with your agent.

Now the good news! If you paid your Body Corporate fees for an entire year but are selling before the year is up, you are likely eligible for a rebate on that money.

These are all important considerations when choosing the right agent to sell your property. Give us a call at NZ Residential to learn more about expected fees for your particular case.