Exposed: Hidden costs when selling

As a real estate agent, you’ll know all about the hidden and not-so-hidden costs of selling a home. But vendors often underestimate the impact of these costs on their sale.

Now that the market has turned and margins are reducing, it’s all the more important to ensure that your vendors get the most bang for their buck. We put together some helpful information you can share with your clients on the costs involved — and how we can help to cover some of those.

Real estate marketing costs

With more and more listings coming to market, and reportedly fewer buyers shopping around, competition among vendors is gaining steam. That’s where a premium marketing campaign can help them stand out from the crowd.

Depending on your vendor’s requirements, the package can include anything from professional photos to videos and virtual walk-throughs. Of course, a targeted marketing plan featuring professional photos comes at a price, but it’s also an investment in visibility.

According to Wise Up NZ, professional real estate photography packages can cost between $200 and $1,200, depending on how sophisticated the service is. Some photographers, for example, may use drones for aerial stills and videos to give potential buyers an even more immersive experience.

Home staging costs

Professional home staging is all about highlighting the best features of the property. Home stagers know what makes buyers tick, and how to draw their attention to all the right places.

Home staging fees are based on the stager’s experience, as well as the property size and period length. So, it’s not easy to provide a ballpark figure. But generally, a vendor can expect to pay between $1,000 to $5,000 (and more) for a five-week period.

It’s important to stress to your vendors that penny-pinching may not be a good idea. Low-cost packages may use lowerquality furniture that’s not aligned with the property’s look and feel — with the risk of obtaining the opposite result.

Lastly, a quick note about storage costs: if your vendors need to declutter or remove some items, they may also need to factor in those requirements.

Last-minute repairs

From little fixes through to more comprehensive remedial work, properties often need a final spruce-up before being put up for sale.

As the real estate agent, you will be there to help to guide on what fixes are likely to boost the property’s value. It could be something as little as a fresh coat of paint or removing scratches and dents. Or it could be repairing something that, as it is now, may get in the way of a profitable sale.

Fixing around the house is more than just a nice-to-have. Often, sale and purchase agreements are conditional to building reports. And if the builder’s inspection identifies hidden issues, these may need to be fixed before the agreed settlement date.

Cleaning costs

Some buyers may add a professional cleaning condition to the sales and purchase agreement. But even if they don’t, ensuring the property is spotless, clutter-free and welcoming is all part of making it sales-ready. Again, costs vary widely depending on the company, so it’s a good idea to recommend to your vendors that they request quotes, read plenty of reviews, and if possible, ask family or friends who they would recommend.

Legal costs

Finally, let’s talk about lawyers and conveyancer fees. With so many binding documents to make sense of, it’s a good idea for vendors to get professional legal assistance, to navigate the intricacies of the sales process with confidence. Based on the complexity of the transaction and their budget, costs can vary widely — but the potential costs of not getting advice can be a lot higher.

At List Now (formerly known as Lifestyle Finance) our mission is to help Kiwi vendors make the most of their property opportunities, thanks to our smart finance tools. We can fund the marketing of a home, and your vendors will not have to make any repayments for the first six months. Plus, if the property needs a revamp ahead of going on sale, we can help with that too. Vendors pay nothing upfront and make no payments for six months or until the house is settled, whichever comes first.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion, and seek independent guidance.

Karen Jackson, Managing Director, List Now