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The Costs Involved in a Property Sale

This is one of the first questions many potential sellers ask, and they should. After all, selling a property is about realising a maximum return for a substantial investment, so knowing how much it will cost is important. The following is my general guide to the costs involved in selling a property:

1. Agent’s success fee or commission

The fee covers the time and expertise agents devote to creating and launching successful sales campaigns, liaising with potential buyers, organising viewings, drawing up professional legal contracts, negotiating on behalf of the seller for the best results, liaising with the buyers and their settlement agents to ensure all conditions are successfully met within the contract dates – and offering their overall professional expertise, built up through years of experience in property sales. The fee is payable on the successful property settlement and managed by the seller’s chosen settlement agent/conveyancer, who (like ourselves) acts in our client’s best interest.

Most Albany agents’ fees work on a sliding scale in the range of a successful sales price; in reality, the fee structures of Albany agents are relatively on par, around 3%, so it’s a bit higher in country towns than city agents. A few of us are open to negotiation – within reason, of course, as we are professionals offering a highly skilled service. A well-regarded, experienced agent can be worth their weight in gold by creating the perfect sales campaign for your specific property and providing sound advice that results in a swift sale at a price you are delighted with.

2. Conveyancing Fees

Any property sale has legal implications, so you engage a legal advisor or conveyancer. Their fees may vary between locals and city-based agents, but their job is to guide you through the legal nuances of a property purchase or sale while acting in your best interest. They will help you understand the contract of sale and ensure all key dates are met during the transaction. They also ensure you know and meet all your legal obligations as a seller within the contract.

3. Property Marketing

An amazing marketing campaign is absolutely essential to achieve the highest price and a stress-free property transaction. If someone asked you to invest a couple of thousand dollars, with the possibility of returning an extra, say $20,000 or more, on your investment over a few months, you would probably think it’s a scam.

But in modern real estate sales, using state-of-the-art digital technology, the chances of achieving MANY thousands more than your investment with a top-notch marketing campaign have been proven not only possible but likely, so it’s a very low-risk investment for sellers. The added value of marketing investments tends to increase exponentially from lower to higher price classes. Still, every seller willing to invest in a marketing campaign, regardless of the price class, stands to gain many $1,000s more.

There are only a handful of certified social media marketers like myself in WA. I create finely-tuned marketing campaigns by employing highly skilled photographers and videographers to produce a beautiful live drone video of the property, showing it in its true form – and the very best light. The videos are used on social media platforms to proactively promote the property to ideal buyer types for the specific property – with enormous success. We can reach thousands of purposefully targeted potential buyers almost instantly. The property video is also on all real estate search portals like realestate.com.au, Domain, REIWA, etc., to entice and excite buyers to view it as soon as possible and, hopefully, put pen to paper after the viewing.

A live drone video is available for ANY property in ALL price ranges. I quickly sold a unit opposite IGA North Road “sight unseen” (around $250,000) and a $2.5 million property within a miraculous 6-week period—primarily due to successfully reaching the right buyer types all over the country and internationally through the seller’s social media campaigns.

If a seller’s property’s “point of difference” is a large block, gorgeous views, a beautiful garden, a pool or a lovely, secluded backyard – or enjoy a special location, for example, near a park, beach or town – the live drone videography campaign could add many thousands of extra dollars to your sales price. It’s also highly effective in marketing unique, historic, or unusual properties and brilliant exposure for all lifestyle properties, which is one of my specialities.

My marketing includes advertising on all the major portals, such as realestate.com.au, REIWA, Domain, etc. – around 14 national sites. When applicable, specialist portals, such as tourism and farms/hobby farms, are added. International advertising is offered free of charge for suitable properties.

Not all property owners will choose to have a professional live drone video of their property. In this case, my sellers do not incur extra marketing costs. I offer properties in Albany free staging, professional photography, and free standard website marketing.

Should we decide to use live, professional videography, the sellers usually contribute a small amount while I carry most of the marketing expenses. I will negotiate marketing fees with sellers outside of Albany – for example, Mt Barker, Denmark or Walpole areas, as professional contractors usually charge extra to cover their time and travel costs.

Social media marketing using live video is an extremely affordable marketing option for sellers and an incredibly valuable, proactive marketing tool. Not many agencies use this method as it’s very time-consuming. The marketing needs to be monitored and adjusted daily, but it’s a worthwhile effort for an independent agent like myself – and mostly results in a quick, high-priced sale for my sellers.

4. Styling Costs

Some properties hugely benefit from styling or staging before the sale. It can be one of the quickest and most cost-effective ways to stand out to buyers and trump your competition. We specialise in showing off the best parts of your home by accentuating the rooms to appeal to various buyers not only visually but, most importantly – emotionally. If buyers can imagine living there, we’re ahead of the crowd.

I offer my sellers free staging, excluding extra furniture. Staging adds massive appeal to property photography. It ensures more buyer interest and viewings, often resulting in a higher sales price and a quicker sale – exactly what my seller and I want.

5. Lender Fees

If the property you intend to sell has a mortgage, lender fees may be involved. These tend to cover discharging the mortgage or early exit fees. Each lender’s fees vary, so it’s best to speak directly with them about the charges you will incur. It’s also a good idea to contact your lender early in the sales process, as they will forward discharge forms and other documents that need to be filled out. Meanwhile, on average, discharging a mortgage can take anywhere from 14 to 21 days, so it’s best to get the paperwork done early if you’re after a quick settlement.

If you are considering selling a property in Albany, Mount Barker, Denmark or Walpole areas, please contact me or call me to discuss your needs. Consultation, advice and appraisals are free of charge, with no obligation or harassment – ever.