How Much Does It Cost To Rightsize?

In this post, Jenny Simmonds and Belinda Woolrych discuss how much it costs to Rightsize.

This is something I think we can probably both talk about as far as the process costs in getting the property ready. But there are also costs from a financial planning perspective. So can you tell me from your point of view Jenny, what are the costs involved in, for example; conveyancing, your planning and those sorts of things that our downsizers should be aware of.

Conveyancing does vary a little but I usually budget for around two and a half thousand dollars – of course, one charge for the sale of your home and then, again, for the purchase of the new home.  Roughly in total you should budget approximately $5000 for legal costs. Then there’s also obviously real estate agent costs, which do vary depending on agent and on the market. You can be a bit more competitive when there’s less stock on the market, but as a guide I usually estimate it somewhere between about 1.8 and 2% of the set of the sale price. I usually suggest to people to make sure when they’re signing those contracts to find out whether that’s inclusive of GST or on top of that.  Generally it should be 1.8 to 2% inclusive of GST in this current market.  There’s usually marketing costs in addition, so that is separate and upfront costs, and that varies wildly depending on whether you want to have full page spreads in magazines like Manly Daily or online promoted listings or whether you’re happy just to have mostly online marketing, but I usually would estimate them an average of at least $6000. People go a little bit higher and if your properties were exclusive, you might want to access some of those high end magazines so you might need to budget a little bit more.  Prices do change for premium ads for which suburbs you’re in and how much you buy in to do this. So quite significant differences online, but you’re right, everyone needs to be doing online marketing. 

That’s actually the way buyers are making most of their enquiries. To get the most out of their property sale, I usually would send clients back to people like yourself Belinda, to get an estimation of costs to present the property on the market – to get that WOW factor!   Remember too, there could be buyers agents investments to save you money and find the right place! It’s also important to factor in any movement moving costs. If someone’s relocating in particular, and also stamp duty. 

It’s important to consider all of these expenses as investment in an outcome, a way to make money and invest in you for your next phase.  If you’re interested in finding out what properties aren’t seen on realestate.com and domain.com, consider a buyers agent.  You can email us at info@belindawoolrych.com to find out more about putting you in touch with the buyers agents service or our financial planner contacts.

Today’s blog is a nugget from last week’s Right Size Your Home Online Workshop. Every Friday fortnight at 10:00am, join me as I take you through the “Rightsize Your Home” framework to help and support you move through the process effectively and efficiently with a practical, step-by-step roadmap on how to overcome the fears and challenges of Rightsizing and plan to make the journey a fun, stress-free and profitable process..

This Online Workshop is full of tips and guidance: How Can I Afford to Downsize?

With over a decade of experience as a Property Makeover and Change Specialist, I have spent many years helping transform homes and lives. My experience in helping those looking to Downsize has led me to write my first book – Rightsize Your Home – The Empty Nester’s Guide to a Stress-Free Downsize, available to download or in hardcover.

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