Property Selling Cost Calculator

Hidden Costs of Selling Your House in Australia: A 2026 Guide

Selling a property in Australia involves more than just the sale price. Many homeowners focus on what they'll receive but overlook the significant costs of selling that eat into their net proceeds. Agent commissions, marketing expenses, legal fees, and mortgage discharge charges can easily reach $20,000–$50,000 or more on a typical Australian home. Understanding these hidden costs helps you set realistic expectations, price your property correctly, and avoid financial surprises at settlement.

Breakdown of Property Selling Costs

When you sell a residential property in Australia, you'll encounter both percentage-based fees (like agent commissions) and fixed costs (like legal fees). Here's a detailed breakdown of what to expect:

1. Agent Commission (Percentage-Based)

Real estate agent commission is typically the largest selling cost. It's calculated as a percentage of the final sale price, which aligns the agent's incentive with your goal of achieving the highest possible price.

• Typical commission rates: 2-3% of the sale price for standard residential properties.
• GST on commission: The quoted percentage is usually exclusive of GST. Add 10% to get the total commission cost. For example, a "2.5% commission" actually costs 2.75% (2.5% + 10% GST).
• Negotiable: Commission rates are negotiable, especially for high-value properties. Shop around and compare services, not just rates.
• Split between agents: The commission is usually split between the selling agent (your agent) and the buyer's agent, with your agency taking a larger share (e.g., 60/40 or 50/50).
• When it's paid: Commission is typically paid at settlement from the sale proceeds. You don't pay upfront.

2. Marketing and Advertising Costs (Upfront Fixed Fees)

Unlike agent commission which is tied to the sale outcome, marketing costs are upfront and non-refundable. You pay these whether the property sells or not. They cover professional photography, floor plans, online listings, signage, and advertising campaigns.

• Professional photography and video: $300–$1,000 depending on package.
• Online listing fees: Major portals (realestate.com.au, Domain.com.au) charge $300–$600 for a 30-day premium listing. Basic listings may be cheaper but get less exposure.
• Print marketing: Brochures, flyers, newspaper ads: $200–$1,000+.
• For Sale signs: $150–$300.
• Staging (optional): Professional furniture staging can cost $2,000–$10,000+ but may increase sale price.
• Total marketing budget: Usually $2,000–$6,000 for a standard property in 2026. Premium packages can exceed $10,000.

Key point: Marketing costs are incurred early in the campaign—often weeks or months before settlement. You need to have this cash available upfront, even though you won't recoup it until (and unless) the property sells.

3. Legal/Conveyancing Fees (Fixed Cost)

A solicitor or licensed conveyancer handles the legal aspects of the sale: preparing the contract of sale, Section 32 vendor statement, liaising with the buyer's conveyancer, and managing settlement. Selling legal fees are separate from buying legal fees (if you're buying another property).

• Fixed fee range: $600–$1,800 for a standard residential sale (2026).
• disbursements: Additional costs like title searches, council rates certificates, and registration fees: $200–$500 extra.
• When paid: Usually at settlement, but some firms require a deposit upfront.
• Selling vs Buying: If you're simultaneously buying another property, you'll pay legal fees for both transactions—double the cost.

4. Mortgage Discharge Fee

If you have an existing mortgage on the property, your lender will charge a discharge fee to process the loan payout and release the mortgage from the title. This is a fixed administrative fee.

• Typical amount: $300–$800 depending on your lender.
• Early exit fees: If you're on a fixed-rate loan and selling before the fixed term ends, you may face substantial break costs (often thousands). These are separate from the discharge fee and depend on interest rate differentials. Check your loan contract.
• When paid: At settlement, deducted from the sale proceeds before funds are released to you.

5. Other/Miscellaneous Costs

Various smaller expenses can add up:

• Repairs and maintenance: Pre-sale fixes to improve presentation: $500–$5,000+.
• Cleaning and gardening: Professional cleaning before listing and after moving out: $200–$1,000.
• Utilities and rates adjustments: You'll typically pay council and water rates up to settlement date. The buyer may reimburse you for prepaid amounts at settlement (handled by your conveyancer).
• Strata fees (if applicable): For apartments/townhouses, you may need to provide strata financials and ensure fees are paid up to date.
• Auction listing fees: If selling via auction, additional auctioneer fees ($500–$1,500) may apply.

Example: Selling a $800,000 Property in NSW

Let's illustrate with a typical scenario:

• Sale Price: $800,000
• Agent Commission: 2.5% = $20,000 (ex GST). With 10% GST: $22,000 total.
• Marketing Package: $4,500
• Legal Fees (conveyancer): $1,200 + $300 disbursements = $1,500
• Mortgage Discharge Fee: $450
• Other (cleaning, minor repairs): $1,000
• Total Selling Costs: $22,000 + $4,500 + $1,500 + $450 + $1,000 = $29,450
• Net Proceeds: $800,000 - $29,450 = $770,550

In this example, the seller keeps about 96.3% of the sale price after costs. The 3.7% reduction represents the real cost of selling.

How to Maximise Your Net Proceeds

While some selling costs are fixed, others can be managed:

• Negotiate agent commission: With high-value properties, push for 1.5-2% instead of 2.5-3%. Get multiple quotes.
• Review marketing packages: You may not need premium listings or extensive print ads in today's digital market. Choose a leaner package.
• Compare conveyancers: Get 3 quotes. Fixed-fee conveyancers are often cheaper than solicitors for standard sales.
• Pre-sale preparation: Invest in minor cosmetic upgrades (paint, garden) that increase sale price more than their cost. But avoid overcapitalising.
• Time your sale: Selling in a hot market may achieve a better price, but also consider that some costs are fixed regardless of price—higher price dilutes their impact.

Tax Considerations

In most cases, selling costs are added to the property's cost base for capital gains tax (CGT) purposes. This means if the property is an investment (not your main residence), you can deduct these selling expenses from your capital gain when calculating CGT. Keep all receipts. However, for your principal place of residence (PPOR), CGT is generally exempt (except for certain income-producing use), so selling costs aren't tax-deductible.

Selling While Buying: Double Costs

If you're selling your current home to buy another, you face both selling and buying costs. Legal fees double (sale + purchase), and you may have mortgage discharge fees on the old loan plus establishment fees on the new loan. Budget accordingly—your total transaction costs could exceed 5-7% of property value when combining buying and selling expenses.

Frequently Asked Questions

Q1: Are agent commissions negotiable?

Yes. Agent commission rates are not set by law; they're a commercial agreement. It's common to negotiate, especially for properties over $1M. However, be wary of choosing an agent solely based on the lowest commission—service quality, marketing reach, and track record matter more. Compare value, not just price.

Q2: Can I avoid marketing costs by selling privately?

Possibly. Selling privately (FSBO - For Sale By Owner) eliminates agent commission entirely, but you still need to cover marketing costs to reach buyers (online listings, signage). Private sales also require you to handle negotiations, contracts, and legal compliance yourself, which carries risk. Many private sellers still engage a conveyancer, so legal fees remain. Commission savings may be offset by a lower sale price if you lack marketing expertise.

Q3: Do I pay GST on selling costs?

Most selling services (agent commission, conveyancing, marketing) attract 10% GST. When you receive quotes, ask whether prices are inclusive or exclusive of GST. A "2.5% commission + GST" actually costs 2.75% total. Similarly, legal and marketing fees usually include GST. These GST amounts are part of your total outlay.

Q4: Are selling costs tax-deductible?

For investment properties, selling costs (agent commission, legal fees, marketing) are added to the property's cost base, reducing your capital gain for CGT purposes. They are not immediately tax-deductible but reduce the taxable capital gain. For your main residence (PPOR), selling costs are not tax-deductible because the capital gain is generally exempt. Consult a tax advisor for your specific situation.

Important: This property selling cost calculator provides estimates based on your inputs. Actual costs may vary based on your chosen agents, conveyancer, lender, and local market practices. This tool is for planning and comparison purposes only. Always obtain detailed quotes from service providers before making decisions. For personalized advice on selling costs and net proceeds, consult a qualified conveyancer or real estate agent.