Worked Cost Examples and Checklists
How much will I get from selling my house? A net proceeds worked example
A full worked example of the money left from an Australian home sale after commission, marketing, conveyancing, mortgage payout and settlement adjustments.
To work out what you will actually receive from a sale, start with a realistic sale price, subtract the agent's commission including GST, the marketing, your conveyancing and discharge fees, the mortgage payout figure and any break cost, then add or subtract the settlement adjustments for rates, water and strata levies. In the illustrative example below, a $1,050,000 house with a $520,000 mortgage leaves the seller about $492,600 at settlement, roughly $37,400 less than the simple "price minus loan" figure of $530,000.
This is the starting guide for the Worked Cost Examples and Checklists section. Every guide in the section takes one part of this calculation further:
- Commission structures compared: percentage, flat and tiered fees in dollars
- Stamp duty calculation examples: what your buyer, or you on your next purchase, will pay
- Upfront costs of buying a home: the cash needed if you are buying again
- How to choose a real estate agent: questions and a scoring checklist
- Conveyancing fees: reading a conveyancing quote
- Property marketing costs: building and controlling a campaign budget
- CGT partial exemption worked example: when part of the gain is taxable
Step 1: choose a realistic price
Use recent comparable sales of similar homes nearby, not the top of an agent's range. If three agents estimate $1,000,000 to $1,100,000, model the middle and the bottom. Here we use $1,050,000 and test $1,000,000 at the end.
Step 2: commission and marketing
The agent quoted 2.0% plus GST, so 2.2% of the price:
- Commission = $1,050,000 x 2.2% = $23,100
- Marketing campaign (portal listings, photography, floorplan, video, signboard) = $7,500
- Auctioneer fee, not included in commission = $800
Subtotal: $31,400.
Step 3: legal and loan costs
| Item | Amount |
|---|---|
| Conveyancing professional fee and disbursements | $1,900 |
| Lender discharge fee | $350 |
| Government fee to register the mortgage discharge | $160 |
| Fixed-rate break cost (variable loan here) | $0 |
Subtotal: $2,410. Discharge fees and land registry fees vary by lender and state; the figures here are illustrative. Ask your lender for a payout figure for the settlement date, because interest accrues daily.
Step 4: preparing the home
- Garden tidy-up, minor repairs and painting: $1,800
- Professional cleaning before photos and after moving out: $600
- Removalist: $1,400
Subtotal: $3,800.
Step 5: settlement adjustments
Council rates, water service charges and strata levies are apportioned at settlement. If you have prepaid the quarter, the buyer reimburses you for the days after settlement; if you are in arrears, the amount is deducted from your proceeds.
Example: council rates of $2,400 a year, paid to 30 June; settlement on 15 May. The buyer owes you for 46 days (16 May to 30 June): $2,400 x 46 / 365 = $302.47. Your quarterly water service charge is unpaid for the quarter: $90 is deducted. Net adjustment: +$212.
Step 6: put it together
| Item | Amount |
|---|---|
| Sale price | $1,050,000 |
| Less commission (2.2%) | -$23,100 |
| Less marketing and auctioneer | -$8,300 |
| Less conveyancing and discharge | -$2,410 |
| Less preparation and moving | -$3,800 |
| Plus settlement adjustments | +$212 |
| Less mortgage payout | -$520,000 |
| Paid to the seller at settlement | $492,602 |
Rounded, about $492,600. Total selling costs (excluding the loan) are $37,610, or 3.6% of the price. If the buyer paid a 10% deposit ($105,000) held in the agent's trust account, the agent normally deducts commission and marketing from the deposit after settlement and pays you the balance, but the total is the same.
Step 7: test the downside
At a sale price of $1,000,000, commission falls to $22,000 and the result is $443,702: $48,900 less. The costs fall by only $1,100 while the price fell by $50,000, which is why the price assumption matters far more than the commission rate.
What can change the result
- No clearance certificate. The buyer withholds 15% ($157,500 here) for the ATO: see foreign resident CGT withholding.
- Capital gains tax, if the home was rented out or used for business: not deducted at settlement, but payable through your tax return.
- Land tax: in some states the contract can require an adjustment; check with your conveyancer.
- Bridging finance or a second move if you buy before you sell.
Frequently asked questions
When does the agent take the commission?
After settlement, usually from the deposit held in trust. The agent must give you an account showing the deductions.
Does the buyer pay any of my costs?
No. Each party pays its own costs. The buyer reimburses you only for prepaid rates and levies through adjustments.
Should I include GST in my estimate?
Yes. Commission and most service fees include 10% GST, which a home seller cannot claim back.
Is the deposit paid to me before settlement?
Normally no. It is held in trust until settlement. In some states sellers can ask for an early release of the deposit to fund their next deposit; it needs the buyer's agreement and carries risk.
Official sources
- Australian Taxation Office — clearance certificates and CGT on property
- NSW Fair Trading — agents' trust accounts and selling property
- Consumer Affairs Victoria — selling a property and the sale contract
- Moneysmart (ASIC) — budgeting for buying and selling a home
