CT Real Estate

The Hidden Costs Of Selling Your Property

There’s nothing worse than being in the middle of selling your property only to be faced with (expensive) hidden costs you didn’t expect. Between agents fees, marketing costs and conveyancing, selling a home in Victoria can be quite pricey.

To prepare, you’ll need to know what the common expenses are. This article summarises these so you won’t be caught off guard when selling your home.

What Are The Upfront Costs Of Selling Your Property?

Upfront Costs Price Range
Conveyancing $800 – $2,000
Marketing  $6,500 – $8,000
Agent Fees 1% – 3% of final sales price OR $4,000 – $10,000


Conveyancing refers to the process of transferring the legal ownership of a property from one person to another. This is an unavoidable cost as it is required in every property purchase. You should set aside between $800 – $2,000 for conveyancing fees


Marketing your property is a crucial part in selling it. While each marketing campaign is unique, you should be at the very least considering a basic marketing plan. This may include listing it on real estate websites, having a board in front of the property, press advertising and professional photography

The average fees for marketing campaigns held in Melbourne in 2020 was between $6,500 – $8,000.

Agent Fees 

Real estate agents typically take a percentage of the final price of the property as part of their fees. However, some agents also charge a flat fee which is agreed upon before the sale

Commissions in the form of percentages usually ranges between 1% – 3%, but is influenced by a number of other factors like property value. As for flat fees, the range charged by real estate agents in Australia is between $4,000 – $10,000.

What Are The Hidden Costs Involved?

Hidden Costs Price Range
Staging $2,000 and $8,000
Moving $300 and $10,000 (depends on distance and number of items)
Legal fees $800 – $2,000
Council rates Depends the councils annual budget and rateable properties in the area. Reach out to your conveyancer for this. 
Bank fees $100 and $1,500
Capital gains tax Depends on how much gains are made from your property sale. Reach out to your tax accountant for this.


Styling or staging your home refers to dressing it up in preparation for a sale. This can involve redecorating, repairing lighting and fixtures, repainting and cleaning your home.

83% of real estate agents believe that a staged home sells faster and 50% say that staging can increase the property’s value by 1% – 15%. Staging your home can make a big difference to sales process and is considered a worthwhile investment. As the saying goes, you only have one chance to make a first impression. So, it’s best to make it count. 

However, staging costs can be quite expensive, ranging between $2,000 and $8,000.  


Moving costs are easily forgotten because this comes after the final settlement is completed. This cost typically depends on the number of items to be moved and the distance between places. But as an estimate, the cost of a move in Australia could be anywhere between $300 and $10,000. 

Legal Fees 

When selling your property, you may need to enlist the help of a conveyancer or solicitor. We’ve discussed what conveyancers do and how much they may cost, but solicitors are a little different. 

Solicitors have broader legal knowledge and can assist with the agreements and legal documents pertinent to the sale. They can handle the complexities of property law in Victoria and ensure that your best interests are protected. The fees for this would range from $800 – $2,000.

Council Rates 

Homeowners are responsible for council fees up until the day of settlement. Calculating council fees can get a little technical as this depends on the councils annual budget and rateable properties in your area

Your conveyancer should be able to assist you in finding out how much council fees you’ll need to pay.

Bank Fees 

Banks typically charge an early-exit and mortgage discharge fees for property sellers. This usually costs between $100 and $1,500.

Capital Gains Tax 

Capital gains tax is charged when selling an investment property or if a property is used to generate income. This is included in the seller’s taxable income.

The amount incurred depends on how much gains are made from the sale of the property and costs incurred from owning the property. This is something that your tax accountant can assist you with.

What Costs Can You Save On? And Should You?

Mandatory Costs 

Fees that you won’t be able to avoid include:

  • Legal fees
  • Council rates
  • Bank fees

These are costs that you’re required to pay when selling any property so it’s ideal to set aside some funds for these. 

Optional Costs 

Fees that are optional when selling your property include:

  • Marketing expenses
  • Staging/styling costs
  • Real estate agent fees
  • Capital gains tax (CGT)

While these expenses are optional, it does not necessarily mean you should go without them. 

Marketing Expenses

A basic marketing campaign for example is somewhat necessary as you’ll need to inform potential buyers that your home is for sale. However, each listing is unique and you can and should set a budget for how much you’re willing to spend on marketing costs. 

Staging Costs

Staging costs, as we’ve learned, can be one of the best things you can do to prep your home for a sale. While not mandatory, staging a home can increase the value of the property and make the sales process a lot quicker. Similar to a marketing campaign, you should set a realistic budget for how much you can afford to spend on staging expenses to ensure you don’t entirely lose out on its benefits.

Real Estate Agent Fees

Hiring a real estate agent is another optional cost you can consider when selling your home. Most people are too busy with their day jobs and managing a family to be fully committed to selling their home, which is where real estate agents come in handy. To decide, you will have to consider the opportunity cost of selling the property on your own to hiring an agent. 

Capital Gains Tax

There are a couple ways you can minimise paying capital gains tax (CGT)*:

  • Own the asset for at least 12 months
  • Make the property your main residence
  • Sell during a low income year

The first two points above are relatively straightforward. As for the third point, it refers to timing the sale of your property during a low income year so that it lowers your marginal tax rate and reduces your CGT liability. But to do this, you’ll need to plan well ahead. 

*That said, don’t forget to consult your tax advisor for more detailed information. 

Out Of Sight, Out Of Mind? 

The key to ensuring that you don’t get any nasty surprises when you’re selling your property is to stay on top of your expenses from the very beginning. The good news is that after reading this article, these costs are not-so-hidden to you anymore. 

Start off by mapping out what you’ll need to pay for when selling your home and how you intend to fund these expenses. Along the way, you may find ways to minimise certain costs.

Managing the financial aspects of selling your home can be tricky, which is why CT Real Estate is here to help. Our dedicated team of professionals will do their best to save you the time, money and stress involved with all things real estate. 

Mistakes To Avoid When Selling Your Property

Selling your home is often a long and stressful process, which is why it’s easy to overlook certain details and make mistakes. These mistakes can end up costing homeowners time and money. But the good news is that they’re avoidable with careful planning and preparation.

We’ve compiled a list of 7 common mistakes homeowners make when selling their home so that you can avoid them. Read on to find out more. 

1. Lack Of Research 

You’ll need to do your homework before jumping into selling your home. Lack of knowledge of your local area, property type and the current market demand could be a huge hindrance to a successful sale. 

For starters, try to answer the following key questions to ensure you’re covering enough of ground:

  • What is the demand for your property type and area?
  • What is the buyer demographic in your area?
  • What’s your competition?
  • What valuable selling points does your property or area offer?

Start your search online- looking through reputable websites and at market reports on your suburb. When you are ready, reach out to a professional and experienced agent to gain insights specific to your local area. 

2. Overpricing/Underpricing Your Property 

Overpricing your home could turn away potential buyers while underpricing it could mean a lower profit. Setting an unrealistic price is the most common mistake homeowners make when selling their home

You should be setting a legal and realistic price for your home right from the beginning. Setting something too high initially with the intention to lower it later on may not work either since buyers may already be put off. Get a property valuation or appraisal done by a professional to ensure you list your home at a realistic price and start off your selling process on the right foot. 

3. Overlooking Hidden Costs

Selling your home comes at a cost, most of which can easily be overlooked in the beginning. These hidden expenses can quickly add up so it’s important that you factor this into your sales plan. 

Here are some common expenses that you should consider:

Expense Price Range
Staging expenses $2,000 and $8,000
Marketing and advertising costs $6,500 – $8,000
Moving expenses $300 and $10,000 (depends on distance and number of items)
Legal fees $800 – $2,000
Capital gains tax Depends on how much gains are made from your property sale. Reach out to your tax accountant for this.
Council rates Depends the councils annual budget and rateable properties in the area. Reach out to your conveyancer for this.
Bank fees $100 and $1,500

4. Letting Emotional Attachment Get In The Way

Selling a home you’ve lived in or owned for many years would likely mean that you have some personal attachment to it. Because of this, many sellers make the mistake of taking negotiations too personally and end up losing out on closing a deal that satisfies all parties.

Throughout the selling process, you will likely receive feedback from buyers that you may not like or agree with. Some owners have taken offence at this, causing their sale to fall through. Remember that not everyone will see your home the way you do

At the end of the day, this is a business transaction. Keeping emotions in check would be in your best interest.

5. Using Unprofessional Pictures

Unfortunately, settling for average images is a common mistake most property owners make. We’ve seen everything from blurry phone camera shots to others where the reflection of the owner was caught on camera. These will turn away potential buyers. Keep in mind that more than 90% of homebuyers begin their search online

Instead, recognise that you are marketing an asset valued in the hundreds of thousands to millions. A professional photographer will cost you between $150-$200 per hour which is a small investment for a big impact. At the end of the day, presenting your property in its best light, will help you make strong impressions and secure better prices for your house. 

6. Choosing The Wrong Agent/ Not Using One At All

Choosing the right agent is imperative in ensuring that you get the best out of your sale. This means you’ll need someone who is experienced and has knowledge of the local area you’re selling in

To choose the right agent, you’ll need to ask plenty of questions to ensure that they know their stuff. Here are a few questions to get started:

  • Discuss case studies of other property sales – how did the sale happen and how did they achieve the desired outcome?
  • What approach do they think will work best for you? And why?
  • Do they have extensive experience with your property type and location?
  • What sales method do they recommend for you? And why?

From their responses, you will be able to gauge if they are the right fit for you and your property. If you don’t feel confident, keep asking around till you find the right one. 

Now, not using an agent at all could also be detrimental to your sales process. Carrying the weight of preparing your home pre-sales, finding interested buyers, negotiating and finalising the paperwork are huge tasks. This could lead to unnecessary stress, wasted time and money which could otherwise be avoided by hiring a good agent

7. Not Reading The Contract 

When it comes to handling legal matters, remember to read the fine print. It’s easy to want to rush into signing your contract after a long sales process but overlooking key details of your contract can be the worst mistake to make

Once you’ve signed the agreement, you are required to comply with all of its terms and conditions. Unknowingly, you could have signed your property away including additional repairs or furnishings. To avoid this, double check everything and go through it with a solicitor before signing anything

Bottom Line – Preparation Is Key

If there’s only one thing you take away from this article, remember that mistakes can be avoided when you’re properly prepared. It’s better to take your time understanding what is required from you when you’re about to sell your home before jumping into things too quickly.

Stay on top of your process and make sure that you are fully committed to ensuring a successful sale. And where possible, enlist the help of an experienced agent. 

CT Real Estate’s dedicated team is experienced with the Melbourne CBD and surrounding suburbs. Contact one of our friendly agents today to get the help you require.

How Much Is My House Worth?

Finding out the value of your home is one of the first things you’ll need to do if you’re considering selling it. There are multiple ways to find out how much your home is worth, but which is the best and most accurate?

Before answering that, you’ll need to understand all the options available and what factors may influence the pricing of your property. Firstly, let’s take a look at why knowing the value of your home is so important. 

Why Is It Important To Know The Value Of My House? 

Simply put, your home is an asset that you own. Knowing its worth and tracking its value is good practice, regardless of whether you plan to sell or not. If you’re selling your home, knowing its value will no doubt benefit your sales process and ensure that you don’t overprice or underprice it when listing it for sale. 

If you’re not looking to sell your home, knowing its worth will still help you understand the market better and enable you to plan a successful sale later on in the future. 

How Can I Find Out The Value Of My House?

Research Your Area And Property Type 

As with any other significant undertaking, doing your research is an important prerequisite of selling your home. This will help you understand the market better and allow you to plan your sale smarter.

Look into your local area and the average price of homes there. Also, make sure to search for homes that are the same type as yours. Having an idea of the value of homes in your area will give you a yardstick for the value of your own home.

To start, you can also get an estimate of your property’s value online:

Step 1: Fill in your address

 Step 2: Provide the reason why you’d like to track your property

Step 3: Sign up with your email to get access to a detailed dashboard. Here, you can get an estimation based on whether you refinance your loan, sell or rent out your property or even renovate it. 

Appraisals vs. Valuations

Appraisals and valuations are not to be confused with one another. 

What’s An Appraisal? 

An appraisal is an estimate of the value of your home done by a real estate agent. The agent will compare the value of your property with others in the area to determine its value.

An appraisal has no legal standing. It’s merely seen as a guide to give you insight on how much your property is worth. Most real estate agents offer this service for free and it is useful to get if you’re thinking of selling your home.

Contact CT Real Estate to get a free appraisal of your property today. 

What’s A Valuation? 

A valuation provides you with a more accurate value of your home. It is a formal property report and thus, has a legal standing. A trained valuer will conduct the valuation by assessing the property and considering the following factors:

  • Features of the property
  • The property’s condition
  • Location
  • Land and dwelling size
  • Accessibility to the property
  • Planning restrictions

A valuation can cost between $300 – $600, depending on the property size, location and other factors. 

What Can I Do To Increase My Final Sales Price?

While you can’t control the market and factors like demand and supply, you can…

Time Your Sale Well 

Timing the sale of your property is complicated but with some research you’ll notice that certain periods of the year are better than others. Learn how the different seasons like spring or winter can affect the success of your sale. Look into the real estate cycle and how to understand demand in your area. Check out our article on when’s the best time to sell your property for further information on this. 

Figuring out the correct time to have your sale can get quite technical which is why contacting an experienced real estate agent may be of help. Getting a professional on board can give you the best chance of increasing the final price of your property.

Make Strategic Upgrades

Upgrading your property can add to its value. This means first ensuring that everything is functioning well and repairing or replacing what is required

In addition, you can redecorate, repaint and clean your home to improve its appearance. This could involve making aesthetic changes to your kitchen and spending some time on the landscaping. Buyers are naturally drawn to homes that are well maintained which is why this can improve the demand and value of your property

Have A Good Marketing Strategy 

Having a good marketing strategy in place from the very beginning can potentially increase the selling price of your property and perhaps quicken the pace of the sale. 

You can market your home by putting up sign boards, advertising in local newspapers or promoting on social media. Whatever medium you choose, the aim is always to cast a wide net so you have a wide pool of potential buyers. Having more buyers interested in your property will increase the demand and value of your home. 

Effectively Negotiate The Price 

At the end of your sales process, it all comes down to the negotiation of the final price. Having a good marketing strategy goes hand in hand with effectively negotiating the price in this case. 

If you have multiple buyers competing for your property, you have the upperhand when it comes to negotiating. This can contribute to driving up the sales price of your home.

Bottom Line 

Many homeowners have considered selling their property but not all of them know how to determine its accurate value. To get a realistic and accurate price, you will need to do your research and get an appraisal or valuation.

CT Real Estate has experience in the Melbourne CBD area and can help you determine the value of your property. Reach out to the team to schedule an appointment or book a free appraisal.


Do I Need A Real Estate Agent To Sell My House?

Legally, you don’t have to use a real estate agent but most Aussies do anyway. There is no one-size-fits-all solution to this question because it all depends on your preferences and your situation. 

There are benefits to both approaches so consider them carefully. Yes, the thought of doing it on your own can be exciting, especially when you think about saving on agent fees. Having said that, there are reasons why almost everyone uses an agent. Let’s look at some below.

What A Real Estate Agent Can Do For You

Valuation/Appraisal Of Property

A huge part of the sales process is identifying the value of your property. It’s important to get a realistic value to avoid overstating or understating the price. 

Real estate agents usually provide an appraisal of the property for free. Sign up for a free property appraisal with CT Real Estate to get started. However, bear in mind that appraisals have no legal standing

Furthermore, you could get a formal valuation by a trained valuer who will consider the following factors to determine the worth of your property:

  • Land and dwelling size
  • Location
  • Connectivity
  • Home features
  • Building condition

Guidance Through The Sales Process

A real estate agent knows the ins and outs of the property sales process, and will be able to guide you from the pre-sales process right through to the final settlement. If you’re unsure of where to begin once you’ve decided to sell your home, figuring things out on your own can be very time consuming and frustrating

A real estate agent can organise the whole process for you and even close the deal quicker. Along the way, they will also be able to provide you with some helpful advice on your sale. 

Marketing Strategy

The successful sale of your property depends on how good your marketing strategy is. This is where a real estate agent can be advantageous. A good agent will have a strong marketing strategy allowing your property to shine in its best light. Their professional network of clients would also mean that they can show off your property to the most interested buyers

Additionally, real estate agents would know what mediums are suitable for advertising your property on i.e. online marketing, newspaper ads, signs and flyers. Instead of playing the guessing game with what might work, your agent should advise you on this so you save on time and money. 

Legal Documentation 

A real estate agent would be able to simplify the paperwork process for you so you can focus on other things. The paperwork includes documents such as the written offer, counteroffer and settlement agreement, just to name a few. 

Keeping on top of all of these documents can be overwhelming especially when certain documents have strict deadlines. A real estate agent would be able to keep you in check and ensure that you’re not missing anything.

Benefits Of Hiring An Agent vs. Doing It Yourself

Pros Of Hiring A Real Estate Agent

  • Save on time 

Real estate agents would handle the meticulous details like paperwork, organising inspections from potential buyers, coordinating marketing efforts and managing calls from interested parties

Having someone in charge of this can save you lots of time so you can focus on other things.

  • Experienced and insight in your area 

Having an agent that is well versed with your area would be a huge advantage when pitching to potential buyers. Interested buyers can ask all types of questions such as the local bus/tram route, number of primary/high schools in the area and highway links

Having an agent that already knows the area well can potentially make the sales process move faster also. Because of their experience in the area, a local agent would have valuable information like the average market price or trends ready at hand.

  • Good marketing strategy and negotiation skills 

Real estate agents would have the best marketing strategy and negotiation skills to sell a home. They may already have an existing network of potential clients to pitch your property

Also an agent with years of experience under their belt would have good negotiation skills, which can be helpful in ensuring that you get what you want

  • Added value on experience and sale 

Having an agent on board puts you in a better position to close the deal at a more attractive price. 

Also, you will generally have a smoother experience with a professional there to guide you every step of the way. There is no price tag that can be placed on the peace of mind this will provide you.


Pros Of DIY (Doing It Yourself)

  • Save on agent fees/commision 

The main benefit of not using a real estate agent is that you’ll save money on paying for their commission and fees. While this may save you some money, selling your home on your own requires a good business acumen and time

  • Direct involvement in the process 

Not going with an agent means you have full control over the whole process. This also means that you will get to know your buyers personally and can negotiate with them

But being directly involved with the sale means you will need to remain impartial about certain things and refrain from being too invested. For example, when pricing your property or negotiating prices, emotions can get in the way and lead to less desired outcomes.

How Do I Decide?


Do you have the time to invest in running the entire sales process of your property on your own? Be realistic about this and consider your day job and other key responsibilities you have. Will you want to give up on those things to work on the sales process? 

If you can’t commit to being fully involved, it’s probably best to consider enlisting the help of a real estate agent. 

Expertise & Negotiation Skills 

Do you have the skills and knowledge required to market your property on your own? Are you able to negotiate the price well? This is a skillset not everyone possesses and could mean the difference between selling at a minimum or maximum profit. 

Consider The Added Value 

Real estate agents provide added value to the process of selling your home. They can handle the meticulous paperwork, finding potential buyers and marketing your property efficiently. 

In addition to this, you will be able to save some time and have peace of mind that a professional is handling your sale for you. 

You will need to consider these services and your own situation to decide whether it’s worth the money to hire a real estate agent.

To Hire A Real Estate Agent Or Not? 

All home sellers will be faced with this decision and it all boils down to how confident you feel handling it entirely on your own. If you feel overwhelmed at the mere thought of the whole sales process and keeping on track with the documentation, perhaps hiring a real estate agent might be the best choice.

If you’re looking for agents you can trust to guide you through the process from A to Z, reach out to CT Real Estate. With decades of experience in the Melbourne real estate market, CT Real Estate is well equipped to assist you on all aspects of real estate.

What’s The Difference Between Private Sales And Auctions? Decide What’s Best For You.

If you’re thinking about selling your home there are two main ways to go about it – through private sales or auctions. One may work better than the other depending on several factors.

Below, we’ll go through both methods in detail so that you can figure out which process suits your situation best.

Private Sales

What Is The Process Like?
The private sales method involves advertising the property at a set asking price or a suggested price range. From there, interested buyers put in their offers via the real estate agent or directly through the seller. Once that’s done, the negotiation process begins. The average duration for the negotiation process is a short 1 to 3 days which includes going back and forth on the pricing at most 3 times.

The key difference between a private sale and auction is of course the element of a deadline. With a private sale, buyers and sellers have more liberty to negotiate on the final price; however with an auction, the final deal is determined on the spot.

That said, other factors also contribute to whether it is a good option for you. Below we look at some pros and cons of the private sales method to help you decide.

What Are The Pros And Cons?



 1. Potentially quicker than auctions.
Auction campaigns can take up to 4 weeks to be fully completed, between marketing the property and hosting the auction itself. But if an immediate offer comes up via the private sales method, you can act on it quickly.
 2. Offers more flexibility.
There is more control associated with a private sale. Sellers have the liberty of taking their time to carefully consider all offers before selecting their most preferred option. Unlike auctions where there is a rush to sell by a certain time or price, private sellers are not as restricted.
 3. Privacy.
If you are a very private person, you might find that the private sales option is more your cup of tea. With auctions, information about your property is laid out in public which can be off putting for some people.


 1. Uncertainty of time.
Just as private sales can be quicker than auctions, the opposite is also true. Private sales are inherently less structured and there is no guarantee on when your property will be sold. Pricing your property is tricky and if you or your agent get it wrong, this could have a direct impact on how long your property remains on the market. Also, if there are interested buyers, the negotiation process in itself can take up time too. Whereas with an auction, there is no room to go back and forth on the price once the bid has been submitted.
 2. Lack of urgency.
Due to the lack of urgency of private sales, potential buyers can spend some time shopping around and considering other options. While this is an advantage from the buyer’s perspective, as a seller this can make the process more drawn out which can also have a direct impact on the final price.


What Is The Process Like?

Auctions are more structured than private sales and require a marketing campaign followed by a sale held at a specific date, time and location. A real estate agent will agree upon a reserve price with the seller prior to running the auction. This refers to the lowest price the seller is willing to sell the property for. Bidders must either meet or exceed the reserve price to successfully secure the property.

What Are The Pros And Cons?


 1. Has a fixed deadline
If you need your property sold by a certain time, auction is the way to go. Prices are usually decided on the day of auction, provided they meet the reserve price.
 2. Creates a sense of urgency
Having an auction date builds urgency and competition in interested purchasers. It also means that your marketing efforts are maximised to ensure that you attract the right buyers for the right price.
 3. No cooling off period
The highest bidder (after meeting the reserve price) is obligated to buy the property. This makes the process quick and final.


 1. No guarantee of successful sale.
Not all auctions work out as intended and reserve prices are not always met. As a seller that has chosen to sell your property via an auction, you should already prepare yourself to expect the unexpected.
 2. Property’s market value is decided on the spot.
There’s no way of fixing the property value beforehand – this is decided on the spot so you can’t predict what would happen. Auctions tend to be designed for people who are looking to let go of their property at a set date and are not too fussed about the specific details.
 3. Expensive marketing costs.
Since auctions require marketing campaigns to advertise the properties beforehand, the costs incurred tend to be higher. However, these efforts play a big role in ensuring that your property has a higher chance of being sold at a better price and so they are considered necessary.

How Should You Decide?

It’s important for you to understand what your goals and expectations are and how the right sales method can help you achieve them.

When it comes to deciding on which method is preferable, use these questions to help you determine your specific needs and what would best meet them.

1.  How quickly do you require the funds?
If you require funds quickly, an auction might be the best choice for you. While planning and executing the auction may take up to 4 weeks, there is a better chance of your home being sold.

It may not close at the price you’re hoping for, but if you are in a rush this might be your best bet.

2. What are the current market conditions? Can you wait to time your sale?
If market conditions look favourable, you might want to consider a private sales option. Private sales would give you better flexibility in deciding when exactly to close the deal, allowing you to take advantage of good market conditions.

3. How important is privacy to you?
Depending on how highly you value privacy, auctions may be out of the question. If you’re uncomfortable with having information about your home being displayed out in the open, a private sales method might be more suitable.

4. How much money are you willing to invest in marketing costs?
Auctions require marketing campaigns to promote the properties beforehand and these costs can really add up. If you’re unwilling to spend a lot on marketing, you might be better off with a private sales option.


Only 20-30% of homes sold in Australia are closed via auctions, indicating that private sales are the most preferred method. However, just because the private sales route is more popular does not mean that it is the best suited method for your particular situation.

Finding the right method, unfortunately, is not as clear cut and there are factors specific to your property type and location that need to be looked at. As always, we recommend speaking to a trusted agent with experience specific to your area for better insights into the sales process.

Need help figuring out how to decide or have any other questions related to the sales process? CT Real Estate are experts when it comes to real estate in the Melbourne CBD and surrounding suburbs. Contact one of our friendly agents and put your mind at ease.

When Is The Best Time To Sell Your Property?

Timing the sale of your home is never easy. You may have heard that certain periods do better than others but how do you know which is best for you?

It all boils down to supply and demand and how this will affect your selling price. Below, we’ve highlighted what to consider when you’re deciding on when to sell your property.

1.  Phases Of The Real Estate Cycle

The real estate market goes through 4 main phases in each cycle:

  • Recovery
  • Expansion
  • Oversupply
  • Recession

Understanding these phases will help you identify when it’s most appropriate to sell your home.

Look Out For The Expansion Stage
While you will see sales and purchases throughout the year, the best time to let go of your property is during the expansion stage. Here, interest rates are low which makes it easier for buyers to secure loans to purchase properties. Also, demand is high because of the market having completely recovered and its generally easier to find new tenants.

The second best time to sell your home is during the recovery phase. This is a popular time for real estate investment since property prices are lower.

How do you identify each phase?

Interest Rates
High interest rates usually happen when the economy is in the recovery phase. This can act as a deterrent for home buyers or real estate investors because it’s more expensive to service their mortgage.

Low interest rates usually happen when the economy is experiencing a recession. This will make homeownership more affordable and encourage more real estate investments.

Market Reports
Observing how the real estate market is behaving will give you an idea of what phase it is currently in. If there is increased demand for housing, it’s likely that the market has entered the expansion phase.

If supply has exceeded demand and there is a property glut, the market is in the oversupply phase.

Enlist The Help Of A Professional
Sometimes, identifying the cycle of the real estate market can be difficult and may require some technical knowledge. Reach out to CT Real Estate and let our team of professionals assist you.

Nevertheless, the phase of the real estate market is only one part of the multiple factors that will affect the sale of your property.

2. Depends On Area And Type Of Property

Identify what you’re working with before you begin trying to time the market.

What is the area and type of property that you’re looking to sell? Beach homes for instance sell better during the summer months while homes with gardens fetch better prices in spring.

Similarly, certain types of properties are in demand at specific times of the year. For example, studio apartments or smaller dwellings do well on the market right before the start of the year as people move closer to their offices or universities.

To understand the trends for your property, do your research. Go online and survey properties similar to yours in the area. How many have been sold recently and at what prices? Is there a noticeable pattern?

This part will involve a lot of research and technical understanding so it’s also best to reach out to an experienced professional to guide you through this. CT Real Estate are experts when it comes to Melbourne real estate. They can help you process through tough questions like:

  • Is it a buyer’s or seller’s market now for the area you are looking at?
  • What is the demand for your property type?
  • What is the asking price of properties similar to yours in the same area?


3. Reason To Sell

The reason you have decided to sell your home will also affect the timing of your sale.

Job relocation
Many decide to move because of a change in their job. In this case, you’d need to schedule the sale of your house to coincide with the schedule of your new job.

Property upgrade or downgrade
A change in the size of your house could be another reason you’d like to sell. Whether you’re looking for a bigger space because of a growing family or you prefer to downsize after retiring, this can affect the urgency of selling your home.

Family reasons
Perhaps you’re moving to be closer to family. If this is for health reasons, selling your home may require some urgency. Otherwise, if you’re not rushing you could take your time selecting an appropriate home that is close enough to your family.

Financial reasons
Another common reason to sell your home is to gain a cash profit. Depending on how soon you may need the funds, this will influence the time of your sale. Do you have the flexibility of waiting it out to get the best possible price? Or are you ok to settle at a reasonable price so as to not drag the sales process on too long?

Whatever the reason, it will likely influence how quickly you need to complete your sale. Contact CT Real Estate to get advice on how you can time the sale of your home to fit into your schedule.

4. The Season To Sell

Certain cities have stronger seasonal effects vs. others, such as Sydney, Melbourne and Hobart. In these cities, when you decide to sell will play a bigger role in the selling price.

Below we look at how Melbourne property prices change according to season.

Let’s go through the seasonal trends affecting sale prices throughout the year.

Typically, most people tend to observe a higher demand during spring time as the weather is more appropriate for viewing houses.

It also helps that the warmer season allows homeowners to display the best features of their property then, such as their garden in full bloom. With more buyers out and about to view properties, you will see more bids for a property which is then reflected in higher sales prices.

Summertime might be the best season to sell specific types of properties, such as beach houses or other waterfront properties. However, generally summer is seen as a bad time to sell a home. This is because summer is in the middle of the holiday season and most people are too preoccupied with this to be viewing houses.

Other than spring, autumn is the second best time to sell your home. It’s a milder season versus summer and winter, which makes viewing houses easier. While this season is not as active as spring, it is still considered a busy period in the real estate market. There are considerably fewer listings versus springtime, which means less competition for you. Not a bad option too.

Winter is generally seen as the worst period to sell your property. The weather is not appropriate for house viewing, which could be a huge deterrent in closing sales. Also, your home may not look its best in minimal natural light and wetter weather conditions.

In Melbourne, most locals escape the worst of winter by getting on a plane and vacationing in more temperate climates. Because of this, you’ll find that there are less potential buyers around.

All in all, selling your property during winter is not a dead end. With less transactions happening during this season, there is less competition which would make it easier to stand out from the crowd.

If you’re unsure about which season is best, contact our experienced team to discuss and weigh up your options.

The Question Of When

We’ve explored what you should be considering when timing the sale of your property and by now, you can see why it’s tricky to pinpoint an exact time.

What’s optimal will always be unique to your situation.

That said, having a knowledgeable expert provide personalised and professional advice can make all the difference to your success.

If you are considering selling your home, CT Real Estate is happy to help. With decades of experience in Melbourne’s real estate, we are well equipped to assist you on all property matters.