Want to know the costs involved in buying and selling a home?

Buying and selling a home can be a tedious process. We can help make this process easier by ensuring you know all the costs involved.

Costs involved in buying and selling property

If you’re selling a property and using a real estate agent, you’ll need to know about commissions, auction costs and other fees. As well as the cost of buying the home you wish to purchase, buying property brings additional fees and charges such as registration fees, stamp duty and mortgage registration fees. All states and territories have stamp duty. In Sydney, home buyers can expect to pay around $50,000-$80,000 on top of the sale price, depending on what you buy. So you’ll need to factor that in. If you decide to enlist the services of a buyer’s agent, there’ll be fees associated with that. Then there’s extra costs such as conveyancing and legal fees, pest and building inspection costs, and mortgage broker fees. It’s a good idea to be across them – or find yourself scrambling behind the couch for a fiddy on settlement day.

Fees involved at a glance:

  • Selling agent fees (if applicable)
  • Buyer’s agent fees (if applicable)
  • Stamp duty
  • Conveyance and legal costs
  • Pest and building inspection costs
  • Mortgage broker fees

Agent fees: seller

The commission real estate agents charge to sell your home varies between states as well as between areas, according to openagent.com.au, which estimates the lowest at about 1.6% and the highest around 4%. The average across the country seems to be around 2-2.5% of the home, meaning on the sale of a $1 million property, the agent’s fee will be $20,000 to $25,000. And while some agents include advertising and marketing costs in their commission, others don’t, so be sure to check. UNO’s Home Loan Report provides a suburb snapshot and property value estimate for your home. It looks at comparable sales in your area and makes suggestions on the loans most suited to your situation. It’s all available in one, easy to read report. Download your free Home Loan Report

Agent fees: buyer

For home buyers, if you decide to enlist the services of a buyer’s agent when looking for a property, expect to pay up to $15,000 for their services. The amount they charge will differ depending on the area you’re buying in, and whether they charge a commission or a flat fee. Some buyer’s agents will charge a commission of 1-2% of the purchase price; others charge a fee of a few thousand dollars up front and a larger sum once they’ve found and secured a suitable property for you.

Stamp duty: buyer

Stamp duty, or ‘bloody stamp duty’ as it tends to be called, is a tax on written documents and certain transactions imposed by state and territory governments. It doesn’t matter if you’re buying a home to live in or an investment property: you’re going to have to pay stamp duty on top of the property sale price. It can vary depending on the state or territory: In Sydney it can be around $50,000-$80,000 depending on what you buy. Most state revenue websites have a stamp duty calculator that calculates the rates home buyers will have to pay. UNO's stamp duty calculator also enables users in any state to work out stamp duty by entering a number of variables. Have a go and read our comprehensive guide to stamp duty here, including information about stamp duty concessions for first home buyers. As an example, the current rates and thresholds for stamp duty in NSW are outlined in the table below: NB: Along with the fee itself, there are additional costs involved with paying stamp duty. You’ll have to pay a transfer fee and a mortgage registration fee. The transfer fee is usually around $200-$300 and the mortgage registration fee around $100-$150. These differ between states and territories as well. Table of Stamp duty based on property value

Conveyance and legal costs: buyer and seller

The legal work involved in preparing the contract of sale for a property (if you’re selling), reading it thoroughly and making any changes (if you’re buying) to home loan documents and other related docs, is called conveyancing. Information about conveyancing can usually be found on the office of fair trading website in your state or territory but generally speaking it will include processes such as examining the contract for sale; arranging building and pest inspections; and examining a strata inspection report (if the property is in a strata scheme). Joseph Rose, a principal at Rose Lawyers in Melbourne, has kindly answered some questions for us on the conveyancing process: What does a conveyancer do?
“A conveyancer’s work is to act for purchasers or sellers of real estate property. They can act in other issues involving the Titles Office such as subdivision of land, creations of easement, transfer of a property as a result of a Probate, and the list goes on.” When do you need one?
“A conveyancer can be used in any transaction involving real estate.” How critical is a good conveyancer when it comes to purchasing property?
“A good conveyancer should always be able to resolve property issues. In this office I work together with the conveyancing department in the more difficult or complex matters. A recent issue that came through the office involved a situation where one of the bank’s used by the vendor (seller) went into receivership. This meant that the transaction could only be completed by a liquidator who was then in possession of the property. This problem caused alarm bells to ring for the purchaser. It took time for the liquidator to cooperate to complete the sale to the purchaser and skill by my office to negotiate the hurdles that the problem created and hurdles with the seller’s other bank.” How much does a conveyancer cost?
“Costs are a matter for each individual conveyancing firm. They are becoming inflated because of the complex demands now being made by the Australian Tax Office which require extra negotiation, communication with the vendor’s accountant and more paperwork than was necessary, say, 12 months ago. My fee is $1,250 plus GST and disbursements.” Does the role of a conveyancer vary from state to state?
“The process is slightly different in each state but the role of the conveyancer remains similar. It is rare for a conveyancer in one state to try to handle a transaction in another state. This may change with time as the dependence on physical presence diminishes with the advent of electronic conveyancing.” Anything else about conveyancing we should know?
“My own personal comment is that there are people who think that conveyancing is a simple clerical task. Those people are fooling themselves. Conveyancing is difficult and complex when done competently.”

Application fees

Application fees are charged by lenders for processing home loan applications. The fee is paid by the customer. Not all lenders will charge a fee. Your UNO Home Loans consultant will keep you informed about such fees.

Pest and building inspection costs: buyer

If you’re serious about making an offer on a property or bidding on it at auction, you’ll need to pay for what’s known in the biz as a “P&B”. Unfortunately it’s not a peanut butter sandwich, but a pest and building inspection. And yes, there are costs involved. P&Bs tend to cost around $250, although sometimes they’re $300 or even $400. Sometimes the vendor or selling agents will pay for one to be done, and interested buyers pay for access to the report, which is available for a slightly reduced fee. At least this is one fee you might be able to plonk on your credit card.

Mortgage broker fees: buyer

If you’re reading this, hopefully you’re considering a home loan via UNO, which doesn’t charge a fee for service. If you choose to use a traditional broker, he or she might charge you an upfront fee for providing you advice and assistance. On top of that, they’ll usually receive commission from the lender, which is a percentage based on the size of the loan and the loan to value ratio (LVR). These payments usually amount to between 0.65% and 0.7% of the loan amount, plus GST, as upfront commission; and between 0.165% and 0.275% of the remaining loan amount, plus GST, per year as trail commission. The percentage your broker receives also depends on whether they go through an aggregator or not. If they go through an aggregator it will be dependent on the aggregator’s agreement with the lender and furthermore, the broker’s agreement with the aggregator. Book in a quick call with our customer care teamRead more in our article, Explaining mortgage broker fees. Book a call in with UNO

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Scott Wilkinson was my broker last year when I sought finance for a new property investment and refinance for my property port folio. He was an absolute delight to work with. He was always professional, on time and always available to talk at a moment's notice to discuss my credit options and give well considered advice; usually this was very much after-hours due to my work commitments during the day. He was always happy to talk. I had not used a mortgage broker in a long time opting to do the re-financing myself. This was primarily due to disappointing experiences I'd had with mortgage brokers in the past. However with the increasing complex nature of dealing with credit providers, I could see that I needed a good advocate to act on my behalf for this particular refinance. In all honesty I did not hold much hope that in the current credit environment I would be able to secure the finance I required for the new property investment I was wishing to secure. Scott found a way however and was able to secure the finance along with the refinance of my portfolio. I have since referred friends to Scott and I know they have been very happy with his work. He is ideal for property investors who have busy day-jobs and need someone who understands property investment strategy and is able to tailor credit advice and options to their needs. Scott provides this advice and information in a way that is clear and concise. He kept me up to date continually during the application process. He made what could have been a very stressful and frustrating process easy and straightforward. I could not recommend Scott and the team at UNO Home Loans more highly. They are all a delight.
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We chose Uno Home Loans from their impressive web site knowing we were going to find it hard, on many fronts, to qualify for a home loan. We were incredibly fortunate to be assigned Mike Parsons as right from the get-go, despite the complexities, he hit the ground running for us. He was incredibly knowledgeable, with years of experience but what was immediately apparent and impressive was that he was totally invested in getting us over the line, doing absolutely everything possible, including working around the clock. Despite it being a relatively small loan in the order of things, Mike never missed a beat, getting docs ready, following up and answering every request from the proposed funder immediately. He kept us informed on progress the minute anything happened, and again if anything needed to be done, he was right on it. In short, we highly recommend Uno, and Mike, knowing what a remarkable job he did, over many weeks, to get us our loan. He got us a great deal, with far better rates than we expected, so we couldn't be happier. In fact, without doubt, you'd be hard pressed to find a more personable, sharp, hard working, dedicated professional who clearly prides himself on getting his customers standout results.
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February 13, 2024
Scott and his team were just A-mazing. We felt supported through the whole process with the greatest quality and care. Every question answered right in time, or even before we asked. The process was smooth and we got the best outcomes we could have wished for.
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February 6, 2024
Our mortgage recently came up for renewal, and with interest rates skyrocketing we were looking for ways to minimise the impact. Michael and his team were proactive and attentive. Michael spent time with us to understand our circumstances. He found mortgage options that worked with our current financial situation and longer investment plans. He presented clear options, providing guidance where needed. He and his team were helpful and responsive - streamlining the process and keeping us updated through the negotiations. In the end, Uno did the heavy lifting and secured a significantly better rate than our current bank offered, all with friendly, personal service. We would highly recommend UNO Home Loans.
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January 15, 2024
I cannot help but congratulate Scott Wilkinson of UNO Home Loans for being an absolute credit to both his company and the entire loans industry. Scott is a truly rare gem of a broker in that he will not only go the extra mile to achieve for each customer the very best deal, but his knowledge of all and sundry within the industry is unsurpassed (you will see what I mean if you speak to him). Additionally, Scott has a clear passion for imparting his wealth of information with each customer, whereas the conversation with most other brokers would simply be over if they could not get you the best deal. For me, Scott Wilkinson of UNO Home Loans stands head and shoulders above the competition and I feel privileged to benefit both from his expertise and professionalism whenever it is time for a refinance or new loan.
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January 11, 2024
Michael Parsons helped me a lot when it's difficult to establish my capabilities in loan.
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Gillian Kearon
January 9, 2024
I highly recommend Mike Parsons as a mortgage broker. I couldn't fault the service provided by UNO. Thanks Mike!
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Taner T
December 20, 2023
Thank you Eren Tan for the amazing service and support. Our Loan was a little tricky and complex for other lenders but Eren managed to get it over the line in record time. His professionalism and dedication to our needs was exceptional. If you need a Loan no matter how complex your situation, make sure you contact Eren at UNO Home Loans.
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December 20, 2023
Buying & selling a house at the same time is very stressful but Scott Wilkinson from UNO home loans made sure we knew what was happening & took most of the stress away. He always kept us up to date and if we had a concern or wanted clarification on something we were able to call him, if he didn’t know the answer straight away he will find out and contact us back.. now we are enjoying our new house and turning it into a home :)
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December 18, 2023
Just completed my first loan with UNO which was so much easier than with other other brokers I have used in the past. Our broker MIKE PARSONS always had time for me and broke things down for me in the simplest of terms and was very patient with my silly questions and my constant changing of plans. I wish I had used them in the past as I wouldn't be in the situation I'm in now. Can't recommend them highly enough. Thanks UNO and Thanks MIKE 😊
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Stephen Broomfield
December 11, 2023
To be able to recommend Scott Wilkinson for your mortgage broker was a privilege. We had deals fall through but Scott supported, guided and stuck with us, proper partnership. The whole team at UNO helped us and supported us right through to after settlement. Made sure everything was correct and how we are progressing. Communication was amazing and straightforward and easy to understand. Transparent. We can not Recommend Scott and the team as Uno high enough. Use UNO with confidence.
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Tarek Hussain
December 6, 2023
Can't thank Amy enough for her hard work, dedication and determination on getting multiple loans completed for me. I wouldn't hesitate in recommending Amy and the Uno team to any of my associates. Will definitely be back in the near future!
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