The Cost Of Selling

 

Selling your property can incur costs such as the real estate agent's commission and legal fees when using a solicitor. The REIQ recommends sellers take into account the agent's commission, advertising and marketing costs, a valuation report, pest and building inspection reports, as well as legal and financial fees when they sell their property.

Agents Commission
 

The Property Agents and Motor Dealers Act 2000 regulates the real estate industry in Queensland. Introduced on July 1, 2001, this legislation has changed the way consumers buy and sell property in this State.

The Queensland Government has set the commission for real estate agents at a maximum of 5% of the first $18,000 of the sale price and 2.5% of the balance of the sale price. 10% GST is also payable on the agent's commission.

Sellers are by law able to attempt to negotiate below the regulated government commissions, however, agents are not obliged to accept.

Some examples:

Sale price Agent's Commission 10% GST payable by the seller

Advertising & Marketing Costs
 

Real estate agents will charge the seller fees for advertising and marketing your property in order to achieve for you the highest possible price. This can involve advertising your property in local newspapers, on property websites, or dedicated property magazines. GST is payable by the seller on these items and included in the advertising account.

Remember that the agent must itemise these costs - before the Appointment of Real Estate Agent (Sales and Purchases) PAMD Form 22a is signed by the seller - and both parties must sign the Advertising Schedule agreeing to the advertising and marketing items and their costs.

Advertising and marketing is particularly essential if you decide to auction your property - the more people who are aware of the auction date, the more likely it is you will achieve a high turnout on the day and consequently sell your property at the best price.

Legal Costs
 

Solicitor's fees are negotiable - it is advisable to compare the fees being charged by a few different solicitors. Good referrals and past experience is valuable when choosing your legal representative.

Sometimes sellers are required to procure the Title Deed to their property through a solicitor.

Financial institution fees
 

As the seller of property your bank or financial institution may charge you for their attendance at the Settlement to receive and discharge the mortgage. Fees vary between institutions.

Valuation report
 

In some cases the seller may wish to procure a valuation of their property to give to potential buyers. In Queensland, contact the Australian Property Institute on Ph: 07 3832 3139 for names of registered valuers.

Inspections and other miscellaneous items
 

Miscellaneous costs to the seller can include preparing the property for sale through garden and painting service providers and other attendant costs of making the property look its best for potential buyers.

Sometimes real estate agents will encourage sellers to procure a pre-sale building and pest inspection report from a licensed professional (see www.bsa.qld.gov.au for more information). This can help to save the seller time when it comes to selling the property, as buyers are able to appreciate upfront the condition of the property for sale.