Costs of Selling Property in Victoria

Build a complete cost list before choosing the campaign

Sellers often focus on commission because it may be the largest single campaign cost, but the final budget can include several separate decisions. Marketing, photography, floorplans, styling, maintenance, conveyancing, an auctioneer, loan discharge and moving costs may be charged by different providers and at different times. Tax or ownership issues can also matter for some sellers.

Create three columns for every item: the expected amount or basis of calculation, who approves it and when it must be paid. Distinguish a fixed quote from an allowance and an optional expense from a necessary one. This turns a collection of verbal estimates into a budget that can be tested against the seller's circumstances.

Understand agent commission and the sales authority

Estate agent commission is negotiable in Victoria. The written sales authority should record how the commission is calculated, the services the agent is authorised to provide, the authority period, marketing expenses and other agreed outgoings. Read the complete authority, retain a signed copy and ask for written clarification of anything that is unclear before signing.

A commission may be expressed as a percentage, a fixed amount or a structure that changes at an agreed sale-price level. Do not compare percentages without checking what price they apply to, whether GST is included and whether the service scope is the same. Ask the agent to show the commission outcome at several plausible sale prices so you can understand the calculation rather than relying on a headline rate.

Also check when the agent becomes entitled to commission, what happens if an offer at your stated price is rejected, and how an exclusive or continuing authority may affect a later sale. Obtain independent advice if the terms or consequences are uncertain.

Itemise marketing and campaign expenses

Marketing can include photography, floorplan production, copywriting, online listing products, signboard, print material, database activity and optional digital promotion. An auction campaign may also include an auctioneer charge. Ask which items are essential to the proposed strategy, which are upgrades and which can be changed without weakening the plan.

The agent cannot charge more for advertising or other outgoings than you authorised in writing or than the service cost them, and rebates or discounts received for services bought on your behalf must be passed on. Confirm whether every quoted amount includes GST, whether the supplier is paid directly or through the agency, and when payment is required. Marketing expenses may still be payable if the property does not sell, so that scenario belongs in the budget.

Set a limit for presentation and pre-sale work

Preparation may involve cleaning, gardening, rubbish removal, storage, minor repairs, painting, styling or furniture hire. Some properties need only a careful reset; others have maintenance or access issues that should be addressed before buyers inspect. Ask what buyer concern each recommendation solves and whether the likely benefit justifies the cost, delay and disruption.

Allow for conveyancing, legal and document costs

A licensed conveyancer or legal practitioner will usually prepare the contract of sale and Section 32 statement, advise on the transaction and manage the conveyancing through settlement. Fees can vary with the property, ownership, urgency and complexity. Owners corporation certificates, searches, copies of records and other disbursements may be additional to the professional fee.

Ask for a written scope that identifies included work, likely disbursements and charges for unusual tasks or a delayed or failed transaction. Engage the adviser early enough to identify missing information. In Victoria, the Section 32 must generally be accurate and complete and given to a buyer before they sign the contract; legal preparation is therefore part of launch readiness, not an optional afterthought.

Budget for the sale method and an unsold campaign

Auction and private sale can involve different expenses, but neither method removes the need for a written budget. For an auction, confirm the auctioneer charge, whether it is included in another package and what remains payable if the property passes in. Consumer Affairs Victoria advises that if a property does not sell at auction, the seller will generally still have to pay marketing expenses and the auctioneer's fee, but not the agent's commission. The authority and supplier terms should be checked for the actual arrangement.

For a private sale that does not sell, marketing expenses are generally still payable while agent commission is not. Again, read the authority rather than assuming every agreement operates identically. Ask whether continuing advertising, a new price strategy, additional inspections or withdrawal from sale would create further costs.

Check property, loan, tax and moving expenses

Other costs depend on the seller and property. A lender may charge for discharging a mortgage. Owners corporation information, compliance work, removalists, storage, cleaning after the sale and temporary accommodation can affect cash flow. If settlement of a new purchase occurs before the sale settles, finance costs may become relevant and should be discussed with a lender or financial adviser. Property ownership and use can also change the tax position, so obtain advice suited to your circumstances.

Estimate net proceeds, not just gross price

A seller's decision should be based on the amount likely to remain and when money is needed, not only the sale price. Prepare a conservative estimate using the commission formula, approved campaign expenses, legal and preparation allowances, loan payout information and any known transaction costs. Test more than one sale-price and settlement scenario rather than building the move around the most optimistic case.

• What is fixed, what is estimated and what is optional?
• Does every quote include GST and expected disbursements?
• Which expenses are payable before the property sells?
• What remains payable if the property is withdrawn or does not sell?
• How does the commission change at different sale prices?
• Are rebates or supplier discounts shown clearly?
• What loan payout, tax or settlement advice is still needed?
• How much contingency is sensible for unforeseen work?

Use the budget to test the selling plan

The cheapest proposal is not automatically the best, and a larger budget is not proof of a stronger campaign. Compare what each cost is expected to achieve, who is responsible for delivery and how the seller will judge whether the plan is working. Require approval before optional expenditure is added.

Use the agent-selection and agent-question guides to compare commission, services and accountability on the same basis. The property-marketing guide helps test the proposed expenses, while the appraisal-to-settlement timeline shows when costs and approvals arise.