Selling Your Home in Australia — Complete Seller's Guide
This article provides general information only and does not constitute financial advice. For advice tailored to your situation, consult a licensed financial adviser. Learn more.
Contents
Selling a property in Australia involves more than accepting an offer. From appointing an agent to settlement day, there are financial decisions, legal obligations, and timing considerations that materially affect your outcome. This guide covers the full selling process and what to expect at each stage.
The Selling Process — Overview
| Stage | What happens |
|---|---|
| 1. Preparation | Engage a conveyancer; prepare contract of sale; arrange building inspection (if relevant); consider styling |
| 2. Appoint agent | Sign agency agreement; agree on method of sale and marketing budget |
| 3. Marketing | Photography, listing on realestate.com.au and Domain, open homes |
| 4. Sale | Auction or private sale |
| 5. Exchange | Contract signed; deposit (typically 10%) paid by buyer; cooling-off applies for private sales |
| 6. Settlement | 30–90 days after exchange; buyer pays balance; mortgage discharged; keys handed over |
| 7. Post-settlement | CGT obligations if applicable; rates adjusted; proceeds distributed |
Typical Selling Costs
Sellers consistently underestimate total selling costs. The key expenses:
| Cost | Typical range |
|---|---|
| Real estate agent commission | 1.5–2.5% of sale price (lower in Sydney/Melbourne, higher regionally) |
| Marketing and advertising | $3,000–$15,000 (photography, portal listings, signage, print, digital) |
| Conveyancing (vendor) | $1,000–$2,500 |
| Home styling / staging | $2,000–$10,000+ (optional but can improve sale price) |
| Auction fees | $500–$1,500 (if using auction method) |
| Mortgage discharge fee | $150–$400 (charged by lender) |
| Capital gains tax | Depends on circumstances — main residence is generally exempt |
On a $900,000 sale, total selling costs of $25,000–$40,000 (including agent commission and marketing) are common before tax considerations.
Auction vs Private Sale
Choosing between auction and private sale is one of the most consequential decisions in the selling process:
Auction advantages: Creates competitive bidding; unconditional contracts at the fall of the hammer (no cooling-off); vendor bids can be used to reach reserve; works best in high-demand markets. Typical costs: $500–$1,500 auctioneer fee on top of agent commission.
Private sale advantages: No auction risk (property passing in below reserve); works in slower markets; conditions can be negotiated (subject to finance, building inspection); buyers have time to arrange finance properly. Cooling-off period applies in most states (1–5 business days after exchange).
Which achieves a better price? This depends entirely on market conditions and property type. In seller’s markets (low stock, high buyer competition), auctions frequently achieve prices above comparable private sales. In buyer’s markets, private sales often work better because auctions with sparse attendance signal weakness.
The Main Residence CGT Exemption
The most important tax consideration when selling your home is the main residence CGT exemption. If the property has been your main residence throughout the entire ownership period, the capital gain is fully exempt from CGT — you pay no tax on the profit.
Key nuances:
- If you rented it out at any point, the gain is partially assessable. The exempt portion is calculated proportionally based on the period it was your main residence vs investment property.
- The six-year rule: If you move out but do not nominate another property as your main residence, you can treat the former home as your PPOR for up to six years without losing the exemption — provided the property is rented out. If it is left vacant, the six-year rule does not apply.
- You can only have one main residence at a time (with a six-month overlap exception when buying before selling).
- Deceased estates: Special rules apply to properties inherited through a deceased estate.
If CGT is likely to apply, speak with a registered tax agent before selling — the timing of the sale within a financial year affects which year the gain is assessed.
Frequently Asked Questions
How much does it cost to sell a house in Australia? Total selling costs typically range from 2–4% of the sale price when you include agent commission (1.5–2.5%), marketing ($3,000–$15,000), conveyancing ($1,000–$2,500), and other costs. On a $1 million property, expect $25,000–$45,000 in selling costs.
Do I pay capital gains tax when I sell my house in Australia? If the property has been your main residence for the entire ownership period, the CGT exemption means you pay no CGT on the sale. If you have rented the property out, a proportional gain may be assessable. The 50% CGT discount applies to any assessable gain if you have owned the property for more than 12 months.
How long does it take to sell a house in Australia? Selling time varies by market conditions and method. Auction campaigns typically run 3–5 weeks. Private sale campaigns vary — properties can sell within days in hot markets or take months in slower conditions. After exchange, settlement typically takes 30–90 days, with 42 days (6 weeks) being the most common timeframe.
Can I negotiate real estate agent commission in Australia? Yes — agent commission rates are negotiable in Australia. In competitive inner-city markets, rates of 1.5–1.8% are common. In regional areas, 2–3% may be standard. You can also negotiate marketing costs, auction fees, and whether the agent charges a tiered commission based on achieving a price above reserve.
This guide provides general information about selling property in Australia. For CGT advice, speak with a registered tax agent. For the legal selling process, engage a licensed conveyancer or solicitor. Find one through MoneySmart.