Hi Guys,
I know this probably been covered heaps of times but always good to get a current opinion.
My partner has just been given a house as part of her inheritance, worth a ball park 350k in burbs of outer Vic.
I understand there is no CGT payable(?) but am curious as to selling costs.
If i get the one of the local agents to sell it for me what costs am i up for?
Is it just a commission they are after – if so how much commission? and if we are talking 3% for example (and this will sound very ignorant of me) but is that 3% of 350k?
On top of the commission what are the other costs – assuming advertising etc?
If i can negotiate a commission what % is a fair deal?
lastly she needs to split the money with siblings, is this the money left over at the end after real estate costs?
and what about repairs and bills we have been paying that the siblings haven't been – is that also taken out of the final figure?
Any thing else I am missing??
THANK YOU THANK YOU THANK YOU !!!
You should look at getting some legal advice as there are some strategies you could employ.
Selling – agents commissions 2 to 3% sometimes this includes advertising. Negotiable. You will also need to use a lawyer or a conveyancer for the sale. Oh and commission is payable on the sale price.
You should also look at the terms of the will. If your friend has been paying bills for the house then these may come out of the estate. If she has been left part of a property then this is hers unless the will says otherwise. Maybe it is the residue of the estate that get split up, that is the left over part after making specific gifts such as this property.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
The costs that you will incur include: Agent's commission, say 3% inc gst, advertising, legal fees (contract preparation, searches, petties), surveyor (possibly), payout of any mortgage/discharge fees. (You may be able to get the agent down around 2.2% incl gst)
If you have been paying to maintain the property you should deduct these costs from the sale and get reimbursed (provided you have invoices to back the costs up).
Agents commission is usually 2% + GST. There are some cheaper ones but from my experience you get what you pay for with them.. The 2.2% is of the price it sells for. Most (but not all) also charge advertising costs- $900 to thousands.
You say your partner inherited a house but has to share the money with siblings. That doesn't make sense. Did she/he inherit it or did all the siblings inherit it?
Just take all the costs out of the money you receive from the sale, then divide.
haha. We all posted at the same time.
Thanks heaps guys clears heaps of stuff up for me,
always much appreciated – this site is an absolute asset!
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