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Agent commission, if you use an agent
This is the largest single cost in a traditional sale. Commission is not regulated in New South Wales and is negotiable, with most residential sales falling between 1.8 and 2.5 percent of the sale price.
On a $1.5 million sale, 2 percent is $30,000. GST is often quoted separately, so a rate advertised as 2 percent plus GST is 2.2 percent in practice.
This cost, and only this cost, disappears when you sell privately. Everything below applies either way. Commission rates in NSW covers how it is calculated and what the agency agreement commits you to.
Marketing
Marketing is charged separately from commission and is generally payable whether or not the property sells. It is also the cost with the widest range, because portal listing fees vary enormously by suburb.
- Professional photography, typically $400 to $900
- A floorplan, typically $150 to $300
- Portal listing fees on Domain and realestate.com.au, from around $600 to well over $2,500 depending on the suburb and the placement
- A signboard, typically $200 to $500
- Printed brochures and open home material, typically $200 to $600
- Video, drone footage or print advertising, where the property warrants it
Conveyancing and government searches
A licensed conveyancer or solicitor is required regardless of how you sell. Professional fees for a straightforward residential sale in New South Wales commonly run around $980, though they vary by firm and by complexity.
On top of the professional fee are the searches and certificates that have to be attached to the Contract for Sale. These are charged at cost and typically total $200 to $400, depending on the council and whether the property is in a strata scheme.
- A title search and the registered plan for the lot
- A section 10.7 planning certificate from the local council
- A sewerage service diagram from the water authority
- Strata documents, where the property is in a strata or community scheme
- A swimming pool compliance certificate, where there is a pool
Mortgage discharge and lender fees
If the property is mortgaged, the lender charges a discharge fee to release the security at settlement. This is commonly $150 to $400 depending on the lender.
A fixed-rate loan discharged before the end of its term can also attract a break cost, which is calculated by the lender and can be substantial. If your loan is fixed, ask your lender for a break cost estimate before you commit to a settlement date.
Settlement adjustments
At settlement, council rates, water rates and any strata levies are adjusted between you and the buyer so that each party pays for the period they owned the property. If you have paid ahead, you are reimbursed. If you have not, the amount is deducted from your proceeds.
These are not really a cost of selling, since they are amounts you owed anyway. They do change the figure that lands in your account, so they are worth including in any estimate.
Tax, where the property is not your home
If the property has been your main residence for the whole time you owned it, the main residence exemption generally means no capital gains tax applies.
If it has been an investment property, or was your home for only part of the period, capital gains tax may apply on part or all of the gain. Foreign resident capital gains withholding may also apply and is deducted at settlement unless a clearance certificate is obtained beforehand.
This is the one area where the numbers depend entirely on your circumstances. It is a question for your accountant rather than something to estimate from a table.
What the total looks like
On a $1.5 million sale in Sydney with an agent, a realistic total is around $30,000 in commission, $3,000 to $6,000 in marketing, roughly $1,200 in conveyancing and searches, and a few hundred dollars in lender fees. That is comfortably above $34,000, or a little over 2.3 percent of the price.
Selling privately removes the commission line. The marketing, the conveyancing, the searches and the lender fees remain, because they are costs of transacting rather than costs of representation.
For reference, an OwnAgent campaign is a flat platform fee of $999 plus a marketing package, at $2,000 for Complete. Conveyancing and government searches sit outside that and are billed to you directly by your conveyancer, exactly as they would be in an agency sale.
Common questions
How much does it cost to sell a house in NSW?
Usually between 2 and 3 percent of the sale price when an agent is engaged. Agent commission is the large majority of that, with marketing, conveyancing, government searches and lender fees making up the rest.
Who pays the conveyancer when selling?
You do. The vendor engages their own conveyancer or solicitor and is billed directly. The buyer engages and pays for their own.
Do I pay marketing costs if my house does not sell?
In a standard agency agreement, yes. Marketing is generally payable whether or not the property sells, which is why the amount should be capped and agreed in writing before the campaign starts.
Do I pay stamp duty when selling a house?
No. Stamp duty in New South Wales is paid by the buyer on the purchase. Vendors pay the costs of the sale rather than transfer duty.
What is the cheapest way to sell a house in NSW?
Selling privately, because it removes the commission. The costs that remain are conveyancing, government searches and marketing, all of which exist in an agency sale as well.
This article is general information about selling property in New South Wales. It is not legal or financial advice. For anything specific to your own sale, speak with your conveyancer or solicitor.
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