Most fees in a Victorian house sale are paid from the money received at settlement. How much of the final price will be left for you? With a clear idea of the costs, sellers can set money aside for every bill, from marketing to tax.

Cost of Selling a House in Victoria: What Every Owner Should Know

Continue reading to learn what each fee is for and how much owners typically spend in Victoria. Later sections show which taxes apply when a house is sold.

Key Takeaways

• Total costs are roughly 2.5% to 4% of the final price.
• In Melbourne, agent commission is the largest fee, at about 1.6% to 2.5% plus GST.
• A standard marketing campaign in Victoria costs between $2,000 and $10,000.
• Legal fees of about $900 to $2,000 cover the contract and Section 32 vendor statement.
• With a free ATO clearance certificate, the buyer pays the price without a 15% deduction.
• Australian residents generally pay no capital gains tax on their main home.

Total Cost of Selling a House

Industry guides show the total cost to sell a house is roughly 2.5% to 4% of the final price. On a $900,000 home, sellers can expect about $22,500 to $36,000 in fees.

In Victoria, only buyers pay stamp duty on a property purchase. No goods and services tax (GST) applies to the sale of an established home.

Agent Commission, the Largest Fee

Commission is the biggest single fee, paid to the agent only once the property sells. In Melbourne, it typically ranges from 1.6% to 2.5% of the final price. Many regional areas have higher commission rates, at around 2.5% to 3.5%.

Before you choose an agent, compare price estimates, called appraisals, from several local offices. Sellers in Victoria can negotiate the commission before signing the agency agreement, known as a sales authority.

For example, a 2% rate on a $900,000 home equals $18,000. With 10% goods and services tax (GST) added, the total is $19,800.

Home Staging and Sales Campaign Costs

Victorian sellers spend between $2,000 and $10,000 on a standard marketing campaign. The budget covers professional photography and listings on real estate websites. Every item appears in the sales authority before the campaign starts.

Payment for marketing is due at signing or on written request, even if no buyer is found.

Auctioneers in Victoria charge around $400 to $1,000 per sale. Home staging, an optional extra, means hiring furniture and decor for the campaign. For four to six weeks, the cost is typically $2,000 to $6,000.

Legal Fees and the Section 32

In Victoria, every buyer must receive a Section 32 before signing the contract. The document, known as a vendor statement, lists the title, planning rules, council rates and any mortgages.

A conveyancer or solicitor prepares the Section 32 and the contract of sale. At settlement, they handle the transfer of ownership to the buyer.

In Victoria, conveyancing fees for a seller range from about $900 to $2,000. Many conveyancers offer a fixed price, set out in a written quote. Copies of official records for the Section 32, such as the title, cost a few hundred dollars more.

Settlement Day Costs and Paperwork

At settlement, lenders charge an average mortgage discharge fee of $300 to $350 to close the loan. The seller pays the Victorian government under $200 to update the title records.

Owners with a fixed-rate loan may face a break fee for ending it early. Ask the lender for an exact payout figure before settlement. Council rates and water charges are shared, with each side paying for its days of ownership.

Resident sellers must provide a free clearance certificate from the Australian Taxation Office (ATO) by settlement. With one in place, the buyer pays the full price without keeping back 15% for the government. Apply online early, as approval may take up to 28 days.

A property lawyer can check every settlement figure and prepare the paperwork for you.

Capital Gains Tax and Your Home

Capital gains tax (CGT) applies to the profit from selling an asset, such as property. Under ATO rules, a main home is generally free from it. No CGT is due when an Australian resident lived there the whole time without earning rent or other income there.

Investment property owners pay tax on the profit made from the sale. Agent commission, renovations and the original stamp duty can lower the taxable amount. Owners who kept the investment for over 12 months currently get a 50% discount.

From 1 July 2027, an inflation adjustment takes its place for any new gains. A 30% minimum tax rate begins on the same day. An accountant can confirm the figures before the property is listed.

Next Steps for Victorian Sellers

Once you decide to sell your home, knowing the exact fees makes each step simpler. Melissa Barlas, property lawyer and founder of Conveyed, can talk through any questions or tricky choices about the transaction. Book a meeting today to get started.

Frequently Asked Questions

How do real estate agents in Victoria set their commission rate?

Three fee types are common. With a fixed percentage, the seller pays one agreed rate on the final sale price. A flat fee is a set dollar amount, regardless of what the home sells for. Under a tiered rate, agents typically charge a higher percentage on the part of the price above an agreed target.

What are the additional costs involved if you’re selling a unit?

The Section 32 for an apartment needs extra details from the owners corporation, the body managing shared areas. In one Victorian conveyancing quote, searches for a unit cost $464.54, about $180 more than a house.

Can owners sell without paying real estate agent fees?

Yes, a private sale is allowed for a home in Victoria. A website listing, photos, signs and a conveyancer might cost $2,000 to $5,000 in total.

Do sellers need to pay land tax when selling property in Victoria?

On contracts under about $10 million, the owner covers any amount due for the full year. Victoria stopped splitting it with buyers at settlement on 1 January 2024. The $10 million limit increases each year in line with inflation.

How does capital gains tax work when buying and selling a home at the same time?

Owners moving house can generally treat both properties as a main residence for up to six months. The previous house needs to settle within half a year of buying the new one. If the sale takes longer, capital gains tax applies to part of the profit.