Selling Costs When You Sell Property in WA

A strong sale price means little if the costs were never clear in the first place. Selling costs affect what you actually walk away with at settlement, so they should be mapped out before your property goes live – not discovered when contracts are being signed.

For sellers, the goal is not simply to spend less. It is to spend with purpose. Some costs protect your result, such as professional marketing and negotiation. Others are unavoidable, such as settlement and loan discharge fees. Knowing the difference gives you control over the campaign and removes nasty surprises.

Selling costs: start with your net proceeds

The figure that matters is your net sale proceeds: the sale price, less the amount owing on your mortgage, less the costs required to sell and settle the property. This is the money available to put towards your next purchase, reduce debt or invest elsewhere.

A realistic estimate should be prepared before you set a price expectation. It should account for your loan payout, agent fees, campaign costs, settlement fees, any agreed buyer credits and likely tax considerations. If you are selling an investment property, a commercial asset or a home that has not always been your main residence, the tax position may materially change the outcome.

No guesswork. A clear estimate lets you make decisions based on facts rather than headline sale prices.

Agent fees are not the whole story

Real estate agency fees are usually one of the most visible selling costs. They are commonly structured as a percentage of the sale price, a fixed fee, or a combination of a base fee and incentive. The right structure depends on the property, the expected sale range and how the campaign will be managed.

The cheapest fee is not automatically the best value. A lower-fee agent who underprices, communicates poorly or fails to create competition can cost far more than the fee saved. Equally, a higher fee should come with a clear reason: stronger buyer reach, better campaign management, direct communication and proven negotiation when pressure is highest.

Ask for the fee structure in writing, including GST, the timing of payment and what happens if the property does not sell. You should also understand whether there are separate administration charges or withdrawal fees. A good agent will explain these directly, without hiding behind vague package language.

Marketing should be treated as an investment

Marketing is separate from agency commission in many campaigns. It may include professional photography, floorplans, copywriting, signboards, online advertising, premium listing upgrades, social media promotion, brochures and video.

Not every property needs every marketing product. A well-presented family home in a high-demand pocket may need a different approach to a waterfront property, acreage or commercial premises. The question is not whether a campaign looks impressive on paper. The question is whether each element will reach the right buyers and create enough urgency to support competition.

In Mandurah, buyer demand can shift between owner-occupiers, Perth-based lifestyle buyers, investors and local upsizers. That makes positioning especially important. Generic advertising attracts browsing. Sharp presentation and a targeted campaign attract inspections from buyers who are ready to act.

Confirm whether marketing is paid upfront, deferred until settlement, or payable if the property is withdrawn. Also ask who owns any photography or video after the campaign. These details are small until they are not.

Settlement and legal costs still need a place in the budget

In Western Australia, sellers commonly use a settlement agent or solicitor to manage the transfer process. Their role typically includes preparing settlement documents, liaising with the buyer’s representative and lender, coordinating rates adjustments and helping ensure the title can transfer correctly.

The fee will vary according to the complexity of the transaction. A straightforward sale with a clear title is different from a property with a mortgage, caveat, deceased estate, tenancy arrangement, strata issue or unusual title condition. Obtain a written quote and check what disbursements are included.

Council rates, water rates and strata levies are generally adjusted at settlement. You are responsible for charges that apply up to the settlement date, while the buyer takes responsibility from settlement onwards. This does not always mean a major extra bill, but it can affect the final funds calculation. If the property is tenanted, rent and bond adjustments may also need to be handled accurately.

Your mortgage can create costs beyond the balance owing

If there is a loan secured against the property, your lender will need to provide a payout figure and release the mortgage at settlement. The payout is not always the balance you see in mobile banking. Interest accrues daily, and lenders may charge discharge or processing fees.

Fixed-rate loans can require closer attention. Ending a fixed loan before its term may trigger break costs, which can be significant depending on interest rate movements and the remaining term. Do not assume this amount will be minor. Request an indicative payout early, then update it as settlement approaches.

You may also need to consider linked accounts, redraw facilities and direct debits. Sorting these before settlement reduces the risk of delayed discharge or an unexpected shortfall in funds.

Presentation costs can improve the result, but set a limit

Sellers often spend money before launch on painting, gardening, cleaning, minor repairs, styling and building reports. These are discretionary selling costs, but they can make a material difference when they remove obvious buyer objections.

The key is to focus on work that improves first impressions, presentation and buyer confidence. Fresh paint in a tired entry, a repaired leaking tap, cleared garden beds and professional cleaning can be more valuable than an expensive renovation completed purely for sale. Buyers will still price in the parts of the property they believe they must fix.

Major upgrades need a harder look. A new kitchen, pool refurbishment or large landscaping project may add appeal, but it will not always return dollar for dollar. The answer depends on the property’s position, current condition, likely buyer pool and the ceiling price for comparable homes. Get clear advice before committing.

If building or pest concerns are known, dealing with them early can also be smarter than waiting for a buyer’s inspection to expose them. Transparency creates confidence. Trying to conceal a problem usually creates a tougher negotiation later.

Tax considerations are personal, not optional

Capital gains tax may apply where the property is an investment, a commercial property, vacant land, or a former home that does not qualify fully for the main residence exemption. The amount depends on ownership structure, purchase history, periods of occupation, income-producing use, deductible costs and other personal circumstances.

Selling costs such as agency commission, marketing and settlement fees may be relevant when calculating a capital gain, but the treatment is not identical in every situation. Keep invoices and records. Speak with your accountant or tax adviser before you sign a contract if tax may influence your timing or minimum acceptable price.

GST can also be relevant in some commercial transactions and property development scenarios. Residential sellers should not assume commercial rules apply, and commercial sellers should not assume a standard residential process is enough. The contract needs to reflect the correct advice from the outset.

Control costs before they control your sale

The best time to discuss selling costs is during the appraisal, when there is still time to plan. Ask for a written estimate that separates commission, marketing, settlement, loan discharge, preparation work and any likely adjustments. Then identify which figures are fixed, which are estimates and which depend on the final sale price or settlement date.

At Beshay Realty, the focus is on making those decisions clear before the campaign starts. Selling is not hard. Selling well means pricing with discipline, marketing with purpose and knowing exactly what the result will mean for you.

A property sale should leave you with confidence, not a spreadsheet full of late surprises. Get the numbers clear early, invest where it strengthens buyer demand, and keep every cost tied to a reason.