How Much Does It Cost to Sell a House in NSW?
The sale price is not what lands in your account. Here is every cost of selling in NSW, who it goes to, and the ones sellers forget until settlement.
Key Takeaways
- What is the biggest cost of selling? The agent’s commission, a percentage of the sale price set in your agency agreement. It is negotiable, so agree it before you sign.
- What does conveyancing cost to sell? With RM, about $2,650 including the contract, disbursements and PEXA, plus $150 per person for AML checks.
- Do sellers pay stamp duty? No. Stamp duty is paid by the buyer.
- What else comes out at settlement? Your mortgage payout and discharge fees, and any rates, water or strata you owe up to settlement.
- Is there tax to pay? Usually not on your main home. Capital gains tax can apply to an investment property.
How much does it cost to sell a house in NSW? Most of the cost is the agent’s commission and marketing, which depend on your agreement with the agent and the sale price. On top of that you pay conveyancing (about $2,650 with RM), the cost of paying out your mortgage, and any certificates the contract needs. Sellers do not pay stamp duty, and on your own home there is usually no capital gains tax.
What are the costs of selling a house in NSW?
Here is the full list for a typical NSW house sale. Some are paid upfront, but most come out of the sale proceeds at settlement.
| Cost | Who it goes to | How much |
|---|---|---|
| Agent’s commission | Your real estate agent | A percentage of the sale price, set in your agency agreement and negotiable |
| Marketing and advertising | Your agent and their suppliers | Agreed upfront in your agency agreement, often paid whether or not the property sells |
| Auctioneer’s fee | The auctioneer | Only if you sell at auction, as agreed with your agent |
| Conveyancing professional fee | RM Property Conveyancing | $1,900 |
| Disbursements | Councils, NSW LRS and search providers | $600, covering the certificates and searches for the contract |
| PEXA settlement fee | PEXA | $146.30 |
| AML and identity checks | RM, for the verification | $150 per person |
| Mortgage payout and discharge | Your lender and NSW LRS | Your loan balance, the lender’s discharge fee and a registration fee, plus break costs on a fixed rate loan |
| Pool compliance or building certificates | Council or a private certifier | Only if your property needs them |
| Capital gains tax | The ATO | Usually none on your main home. Can apply to investment property |
With RM, you pay $400 upfront when you instruct us to prepare the contract, and it is credited back at settlement, so it is not an extra cost. Our guide on how much a contract of sale costs breaks the conveyancing fee down further.
How much is the agent’s commission?
Agent’s commission is a percentage of the sale price, and it is set in the agency agreement you sign with the agent. It varies between agents and areas, and it is negotiable. Marketing is usually a separate cost on top, often payable even if the property does not sell. Read the agency agreement carefully and talk to us before you sign it, because once it is signed the commission and the marketing budget are locked in.
Do you pay stamp duty when you sell a house?
No. Sellers in NSW do not pay stamp duty. It is paid by the buyer on the purchase. Our guide on how stamp duty works in NSW explains who pays and how much.
Do you pay capital gains tax when you sell in NSW?
Usually not on your own home. Your main residence is generally exempt from capital gains tax. If the property was an investment, was rented out, or you did not live in it the whole time you owned it, some or all of the gain may be taxable. That is a question for your accountant, and it is worth asking before you list, not after you sell.
Costs sellers forget
The ATO clearance certificate. It is free, but if you do not have it by settlement the buyer must withhold 15% of the price and send it to the ATO. Apply early, because it can take up to 28 days. See why you need an ATO clearance certificate.
Mortgage break costs. Paying out a fixed rate loan early can cost far more than the discharge fee. Ask your lender for a payout figure before you list.
Smoke alarms and pools. If your pool needs a compliance certificate or your smoke alarms are not up to standard, fixing them costs money and time. See our guides on pool certificates and smoke alarm requirements.
Unapproved building work. Unapproved work can delay a sale or reduce the price. See selling with unapproved building works.
Moving and bridging. If you are buying as well, budget for removalists and any gap between the two settlements. See buying and selling at the same time.
What do you get back at settlement?
Settlement is not all costs. If you have paid council rates, water or strata levies in advance, the buyer reimburses you for the days after settlement. We calculate these adjustments and they are added to your proceeds. Our guide on rates and water adjustments shows how it works.
Worked example
You sell for $800,000 with a $400,000 mortgage. From the sale price come the agent’s commission and marketing, your mortgage payout and discharge fees, and about $2,650 in conveyancing plus $150 per seller for AML checks. Add back any rates and water you have paid in advance. What is left is paid to your nominated account through PEXA on settlement day.
How do you keep the cost of selling down?
Talk to us before you sign the agency agreement
Commission, marketing and the agreement’s terms are easiest to negotiate before you sign.
Get the contract ready early
A contract ready before you list avoids delays that can cost you a buyer. See getting the contract ready before listing.
Ask your lender for a payout figure
Know your discharge fees and any break costs before you set your price expectations.
Apply for your ATO clearance certificate now
It is free and avoids 15% of your price being withheld at settlement.
“The cheapest time to fix a selling problem is before the property goes on the market.”
Thinking of selling? Call us before you sign with an agent and we will tell you what to have ready.
Ready to sell?
Talk to Justin, Julie, Amanda or Nicole. We prepare your contract, check what you need before you list and get you to settlement.
