Understanding the true cost of buying and selling property

We all know that property is one of life’s biggest investments. And whether you're purchasing your dream home or preparing to sell, it pays to understand the full financial picture, beyond the sale price.

While some costs are expected, others can be easily overlooked. That’s why we’ve created this guide to help you navigate the finer details with confidence, so you can budget accurately and move forward with clarity.

For buyers: Understanding the real cost of purchasing property

You’ve done the hard work—saved your deposit, secured pre-approval, and found the perfect place. Before you finalise your offer, here are a few additional costs to keep in mind:

1. Stamp duty
A major upfront cost that varies by state and property value. Most banks offer online calculators to help estimate this amount.

2. Building & pest inspections
While optional, these inspections provide valuable peace of mind and can help avoid costly surprises down the track.

3. Legal & conveyancing fees
Engaging a legal professional is essential for a smooth transaction. They’ll review the contract, manage the title transfer and flag any potential issues.

4. Bank fees & lender’s mortgage insurance (LMI)
Your loan may include valuation and application fees. If your deposit is under 20%, LMI may apply—it protects the lender but is paid by the borrower.

5. Council & utility adjustments
At settlement, you may need to reimburse the seller for prepaid council rates or utilities. It’s a small detail that can often be missed.

For sellers: Costs to consider when preparing your home for sale

Even with a strong sale price, it’s important to factor in selling expenses so there are no surprises come settlement. Here’s what to expect:

1. Agent commission & marketing
A good agent is worth the investment. Clarify what’s included in their fee, and understand the cost of marketing—such as professional photography, premium listings, and digital promotion.

2. Styling & presentation
Creating a strong first impression can add value. Whether it’s fresh paint or professional staging, these enhancements are often well worth the spend.

3. Legal & conveyancing fees
Just like buyers, sellers require a legal expert to handle documentation and disclosures. Transparency around fees is key.

4. Mortgage exit fees or break costs
If you’re repaying a fixed-term loan early, check whether any exit fees apply.

5. Capital Gains Tax (CGT)
If the property isn’t your principal place of residence, CGT may be payable. It’s best to speak with your accountant early in the process.

How to stay one step ahead

While these costs are part of the journey, being informed helps you plan strategically and maximise your outcome.

• Ask for clarity: Request a full breakdown of fees before engaging with agents, lawyers or lenders.
• Compare providers: Explore multiple quotes and services to find the right fit for your goals.
• Build in a buffer: Set aside an additional 5% of your property budget to cover unexpected expenses—just in case.

At Hockingstuart, we’re here to guide you through every step with clarity and confidence. Whether you're buying or selling, our local experts can connect you with trusted professionals and help you make informed decisions every step of the way.

Thinking of making your next move? Let’s start the conversation.