Most sellers have a figure in mind for what they hope their home will sell for. Far fewer have worked out what they might actually walk away with once the sale is complete.

That difference matters. The last thing you want is to be surprised by costs when you’re already organising your next move.

The short answer is that selling a house in Nelson and Tasman can involve more than real estate commission, and the whole picture needs to be looked at. You may also need to budget for legal work, marketing, preparing the property, mortgage-related costs and moving. Some costs are predictable. Others depend on your property, your loan and what you plan to do next.

Here’s a practical guide to the main costs to ask about before you put your home on the market.

1. Agent commission

Commission is often one of the largest selling costs, so it’s worth understanding exactly how it works.

Most commission rates are negotiable. There is no single standard rate that every agency must charge. The amount payable depends on the agreement you enter into with the agency.

Before signing, ask for the commission calculation in writing, including an estimated total based on the appraisal and a clear explanation of whether GST is included or added.

A useful comparison is not simply the percentage. Look at the full proposal: the service being offered, the marketing costs, how the agent will communicate with you, and how they intend to negotiate on your behalf.

2. Legal fees

You’ll generally need a solicitor or conveyancer to handle the legal side of the sale. This can include reviewing the sale and purchase agreement, liaising with the buyer’s legal representative, arranging the discharge of your mortgage and completing settlement.

Fees vary by firm and by how straightforward the transaction is. A sale involving a trust, tenancy, subdivision, complicated title or other unusual circumstances may require additional work. Ask for a written quote and check what is included, as well as any additional disbursements or third-party charges.

3. Marketing and advertising

Your marketing plan may include professional photography, video, floor plans, online listing fees, a signboard, print or digital advertising and other campaign materials.

Not every property needs the same package. It’s worth looking closely at what is being proposed and separating what genuinely markets your property from what markets the agency.

4. Getting the property ready

This is often the most variable part of the budget. Depending on the property and its condition, you might spend money on:

• Cleaning, decluttering and tidying
• Garden work or exterior washing
• Minor repairs, such as a dripping tap, sticking door or chipped paint
• Staging or furniture hire, particularly if the property is empty
• A pre-sale building inspection, if you decide the information would be useful

You don’t necessarily need to renovate. Small, affordable improvements can make a home feel better cared for, while larger projects may not return what they cost. Ask for advice on which jobs are likely to make a meaningful difference to presentation and buyer confidence before spending money.

5. Costs that are easy to overlook

Mortgage break or early repayment costs

If you have a fixed-rate mortgage, repaying it when you sell may trigger an early repayment or break cost, depending on your loan terms and circumstances. It is not automatic in every case. Ask your lender or mortgage broker for an estimate based on your likely timing, and confirm the amount closer to the sale if needed.

Overlapping housing costs

If you buy your next home before your current one settles, or the dates don’t line up, you may temporarily have two sets of housing costs. This could include mortgage interest, insurance, rates, or the cost of bridging finance if your lender approves it.

Build a buffer into your budget rather than assuming both transactions will line up perfectly, and keep clear, regular communication going between yourself, your agent and any other parties involved.

Rates and settlement adjustments

Council rates and certain other property outgoings may be adjusted between seller and buyer at settlement, depending on the agreement and the amounts paid in advance. Most of this is handled by your solicitor and accounted for at the final wash-up you do with them. Your lawyer or conveyancer can explain which adjustments apply to you.

Moving and storage

Removalists, packing materials, storage, cleaning and setting up services at the next property all add up. These costs are easy to underestimate, particularly if you need temporary accommodation or storage between homes.

Tax considerations

For many people selling their main home, the bright-line test may not result in tax being payable if the relevant main-home exclusion applies. However, the rules depend on the property, ownership, use and dates involved, and other land-sale tax rules can apply in some situations even when the bright-line test is not the issue.

Investment properties, properties used partly for rental or business purposes, and properties bought with an intention or pattern of resale may need particular care. Speak with your accountant or tax adviser if you are unsure.

So what might you actually walk away with?

A useful starting calculation is to work through these in order:

1. Estimate a realistic sale priceRather than relying only on an optimistic figure.
2. Subtract the mortgage balance to be repaidIncluding any applicable lender costs.
3. Subtract the agreed real estate commissionChecking how GST is treated.
4. Subtract legal fees and any disbursementsAsk for the written quote up front so this is not a guess.
5. Subtract marketing and property-preparation costsThe ones you will actually pay, not the headline package price.
6. Allow for moving, storage and overlapping housing costsIncluding any period where you are carrying two properties.
7. Ask your accountant about taxSo nothing arrives as a surprise after settlement.

The final figure will depend on the actual sale price, the mortgage payout, the terms of your agreements and any costs that arise along the way.

A local perspective: Nelson and Tasman

When planning a move in Nelson and Tasman, one cost worth thinking about is the timing between selling and buying.

If you need to purchase another property, consider how you would manage the gap if your sale takes longer than expected, or if settlement dates don’t align. Current market conditions and selling times change, so use recent local data and advice when planning your timeline rather than relying on a general rule of thumb.

Common Questions

This article is general information about the costs of selling a property and is not legal, tax or financial advice. Costs vary by property, agency and individual circumstances. Speak with your solicitor or conveyancer about the legal side, your accountant or tax adviser about tax, and your lender or mortgage broker about any loan-related costs.