Cost of selling a house in NSW 2023

In late 2022, the Australian housing market began to stabilise following a period of unprecedented home-buying activity fueled by historically low mortgage rates, now coming to an end. Despite an increase in homes for sale, the 2023 housing market in NSW may not necessarily favour buyers over sellers. Understanding the cost to sell a house in NSW, what spending is necessary to add the most value to your home and which expenses are unavoidable can help to guide a seller on how to enter the market most effectively.

How much does it cost to sell a house in NSW?

When measuring the costs to sell your property, it’s essential to understand that there is more than one NSW property market. Different areas can see significant price variations, particularly between regional and metro suburbs. In general, if you’re calculating the cost of selling a house in NSW, you’ll need to consider these expenses:

Voluntary costs - spend money to make money

Often referred to as hidden costs, these additional expenses are what you spend to make your home more appealing and stand out to potential buyers. The cost of marketing, hiring cleaners and renovations are optional when selling your home. But doing so can pay significant dividends by adding value to your property or improving the visibility of your local real estate market.

Buyer interest in NSW

The recent overhaul of NSW stamp duty is a long-awaited reform that will positively impact thousands of people by helping them shave two years off the time needed to save for a deposit. Starting from 16 January 2023, the new First Home Buyer’s Choice initiative will allow eligible first home buyers who exchange sales contracts after this date to pay no stamp duty for their purchase and instead opt-in to the annual property tax. This could create a surge in demand from first-home buyers for properties valued up to $1.5 million, expected to increase competition and prices. As a homeowner, you can benefit from the new legislation and the increased demand it will bring.

Finding a real estate agent with experience negotiating with first-time buyers is one of the most effective ways to capitalise on this new initiative. For many new homeowners, this could be an exciting but highly stressful decision, and they may not be familiar with the process of buying a house. Local agent’s with a track record for selling property to first-home buyers know the best sales strategies to attract the right person to your home. They can also assist new buyers through the sales process to make it as smooth as possible. When comparing agents, ensure you ask about the First Home Buyer’s Choice initiative and their experience with new buyers if you intend to sell your home for under $1.5 million.

Should you sell your house in NSW?

While buyers may have some advantages in the new year, the increase in available homes links closely to properties spending more time on the market amid challenging affordability conditions, the First Home Buyer’s Choice initiative will help by boosting demand for homes up to $1.5 million, bringing a large number of potential buyers into the market, previously held back by the need to save for stamp duty. Expected to advance another 5.4%, the national annual median price for 2023 remains relatively high. Although less than half the pace observed in 2022, homeowners can still walk away with a higher selling price in 2023 if they successfully attract the right buyer.

Remember that we are not an official source of legal advice. Before beginning the process of selling your property, be sure to conduct your own research regarding the laws and responsibilities involved.

For more advice on how to effectively sell your home, check out our blogs here.