Selling your home is not just a logistical process—it’s a financial one too. To ensure that you’re fully prepared for the financial aspects of selling, it’s essential to create a financial plan. This checklist will guide you through the key financial considerations, helping you budget for repairs, fees, and moving costs. With the right preparation, you can avoid financial surprises and maximise the return on your sale.
While most agents include some level of marketing in their commission, there may be additional costs for premium advertising. These can include professional photography, staging, online listing fees, and printed materials like brochures or flyers. Ask your agent about their marketing strategy and associated costs.
You'll need to hire a solicitor or conveyancer to handle the legal aspects of the sale, such as drafting the sale and purchase agreement and ensuring compliance with local laws. Legal fees in New Zealand generally range from $1,000 to $2,500.
If you still owe money on your home loan, you may need to repay it before the sale is completed. Depending on your mortgage agreement, early repayment fees or break costs may apply. Contact your lender to estimate these fees in advance.
Real estate agents typically charge between 2% to 4% of the sale price in New Zealand. For example, if your home sells for $1,000,000 and the agent charges 2%, you’ll pay $20,000 in fees. Ensure you discuss and confirm the commission rate with your agent upfront.Before you even think about putting your home on the market, it’s important to understand the costs involved in the selling process. While you may think the sale price will cover all expenses, there are various fees and costs you’ll need to consider.
Before listing your home, it's common to invest in repairs or improvements to increase its appeal to buyers. The scale of these efforts depends on your property’s condition.
Fix minor issues like leaky taps, cracked tiles, or peeling paint. For major repairs (e.g., roof or foundation), factor in higher costs. A pre-sale inspection can help identify what needs attention.
Simple upgrades like repainting in neutral tones, updating fixtures, or improving landscaping can boost your property’s appeal. Consult a real estate agent to assess which changes will offer the best return on investment.
When selling your home, consider the logistics and expenses of moving to your next property.
Hiring professional movers can cost $1,000 to $5,000, while a DIY move with a rented truck may cost $200 to $1,000. Don’t forget to include packing materials ($100 to $500).
If there’s a gap between moving out and into your next home, you may need to rent a storage unit, costing $100 to $500 per month depending on size and duration.
When selling a property, it’s essential to consider potential tax implications, especially for investment properties.
In New Zealand, if you sell an investment property within five years of purchase, you may be liable for capital gains tax. Primary residences are generally exempt if they’ve been lived in for more than two years.
GST may apply to the sale of newly built homes or investment properties owned by GST-registered individuals or businesses. Consult a tax advisor for clarity.
Even with careful planning, unexpected expenses can arise. It’s wise to set aside 5-10% of your estimated selling price as a financial buffer for surprises like last-minute repairs or fluctuating market conditions.
If you’re selling to purchase another property, consider how the timing and finances will align.
If your next purchase overlaps with your sale, explore options for bridge financing. This short-term loan covers the gap between buying your new home and receiving funds from your sale.
Plan for the deposit on your next property, which may need to be paid before you receive the proceeds from your sale.
Selling your home requires more than just a strong marketing strategy—it’s a financial undertaking that demands careful preparation. By understanding the costs involved, budgeting for repairs and moving expenses, and considering tax implications, you can ensure a smoother process and maximise your return. With a solid financial plan in place, you’ll be well-prepared to navigate the selling journey and confidently move into your next chapter.
Keep exploring! Head to the next section: Decluttering And Repairs to discover the next stage of the selling process and take another step toward a smooth and successful sale.