Cost of Selling a House: Net Proceeds Guide

The cost of selling a house is the total of the agent’s fee, marketing, legal work, lender discharge and other sale expenses. Build the estimate from written quotes and contracts, then deduct the loan payout and settlement deductions to calculate net sale proceeds. Those proceeds are the sale money left for the client’s next transaction.

For a mortgage scenario, record both the amount and the date it becomes available. A property with $320,000 in gross equity can leave less cash once selling costs are paid. An unsigned sale estimate also carries more uncertainty than a completed settlement.

List the Selling Costs

List each selling cost separately, with its source, payment date and whether it has already been paid. An average cost of selling a house cannot establish the amount available from a particular client’s sale. Use a provisional allowance only until the relevant quote or record arrives.

Cost group	What to include	Record that replaces the estimate
Agent’s fee	Fixed commission or the contract’s percentage calculation, including any tiered rate	Signed agency agreement and final agent account
Marketing and auction	Photography, listings, advertising and auctioneer charges where separately billed	Approved campaign schedule, quote and invoices
Legal or conveyancing	Sale contract work, settlement work, searches and disbursements within the engagement	Itemised quote, engagement terms and final account
Lender discharge	Charges for releasing the mortgage and any loan exit or fixed-rate break cost that applies	Current lender payout statement and fee schedule
Preparation	Agreed cleaning, repairs, styling or storage expenses	Supplier quotes, invoices and payment records
Settlement	Registry or electronic settlement charges where payable by the seller, plus documented adjustments	Conveyancer’s settlement statement and supporting records

The cost of selling a house through an estate agent depends on the signed fee agreement. Consumer Affairs Victoria’s selling guide says Victorian commission is negotiable and can be fixed, percentage-based or a combination. Its guidance also identifies marketing expenses separately from commission.

Read the actual commission formula before applying it to the assumed sale price. A tiered agreement needs its own calculation, including whether a higher rate applies to the whole price or only one portion. Record whether each quote includes goods and services tax (GST), then use the full cash amount payable.

For marketing costs to sell a house, identify what the agreed campaign includes and what requires another payment. In Victoria, the same guide says agreed advertising expenses can remain payable if the property doesn’t sell. A campaign extension therefore needs an updated allowance if it adds expenses under the agreement.

Treat tax on the sale as a separate question for the client’s tax adviser. If the client supplies a documented tax reserve or payment amount, record it separately when deciding usable funds. This guide doesn’t calculate capital gains tax.

Calculate Net Sale Proceeds

Net sale proceeds equal the sale price less unpaid selling costs, the loan payout and other settlement deductions. Add documented settlement credits where they apply. Keep the loan repayment separate from the costs of selling your home so the client can see what each amount does.

The following example is hypothetical, in Australian dollars. Every amount is assumed, and the fees include any applicable GST. It assumes the seller owns the whole property and all listed costs remain unpaid and will be met from the sale funds.

Item	Amount	Calculation or assumption
Sale price	$800,000	Assumed price, to be replaced by the signed contract
Agent’s commission	$17,600	Assumed 2.2% of the full price, including GST
Marketing and auction	$3,500	Assumed combined campaign charges
Legal and conveyancing	$2,000	Assumed fee and disbursements
Discharge and settlement fees	$500	Assumed total, separate from the payout below
Preparation invoices	$2,400	Assumed unpaid invoices, payable from sale funds
Selling costs	$26,000	Total of the five cost rows above
Loan payout	$480,000	Assumed payout for settlement, excluding the separate $500 fee row
Other settlement deductions	$1,200	Assumed net debit confirmed through settlement records
Net sale proceeds	$292,800	$800,000 less $26,000, $480,000 and $1,200

Gross equity in this example is $320,000: the sale price less the assumed loan payout. Net sale proceeds are $27,200 lower after selling costs and the other settlement deductions. Using gross equity as the deposit would overstate available funds by that amount.

Check for double counting when replacing the assumptions. If the lender payout includes the discharge fee, remove that fee from the separate cost row. An invoice already paid from savings remains a selling expense, but it must not also reduce the settlement payment.

If the $2,400 preparation bill has already been paid, the example’s settlement cash rises to $295,200. The earlier payment has already reduced the client’s savings by $2,400. Combining settlement cash with current savings preserves the same overall funds position.

The buyer’s contract deposit is part of the $800,000 sale price. Do not add it again as extra proceeds. Reconcile any deposit money already released or directed elsewhere with the conveyancer’s final distribution statement.

Allow for Timing and Uncertainty

Keep a base estimate and a separate downside estimate until the sale price, payout and settlement distribution are established. Record the assumptions behind each version so a buffer isn’t mistaken for a quoted expense. Update both versions when the contract or settlement date changes.

The loan balance on a recent statement is not necessarily the payout for settlement. As at October 2026, CommBank’s home loan guidance describes its estimated payout as including fees and interest for the chosen settlement date. For the client’s lender, use the payout record for the actual date and reconcile every included charge.

A longer campaign can add quoted marketing expenses and keep the existing loan running for longer. Scheduled repayments also change the balance. Model a delayed payout using updated lender figures, without assuming that each repayment reduces principal by its full amount.

Settlement adjustments can be credits or debits. Consumer Affairs Victoria’s settlement guide, updated 8 April 2026, says rates and other outgoings are adjusted between the parties. Use the conveyancer’s calculation for the property’s jurisdiction and contract before adding a specific adjustment to the scenario.

Here is a hypothetical buffer method using the $292,800 base estimate. Assume a sale price $20,000 lower, another $2,000 in campaign expenses and a $1,000 higher payout. These are modelling assumptions, not market forecasts or lender charges.

At the assumed 2.2% commission, a $780,000 sale reduces commission by $440. The downside estimate is therefore $270,240: $292,800 less $20,000, plus $440, less $2,000 and $1,000. The difference of $22,560 is the scenario buffer.

Do not deduct another $22,560 if you already use the downside proceeds. That would apply the same buffer twice. Keep any additional cash reserve for moving or other client commitments separately identified.

For simultaneous sale and purchase settlements, confirm how the sale funds will reach the purchase with the settlement representative. Record the purchase payment deadlines and the expected release of sale funds. Money available only after sale settlement cannot fund an earlier purchase deposit without another documented funding source.

Use the Figure in a Finance Scenario

Enter the verified net sale proceeds as a dated source of funds, then allocate the amount once across the client’s commitments. Preserve the supporting calculation in the broker file. Reconcile it to the actual settlement distribution before treating estimated proceeds as received cash.

Finance task	Where net proceeds enter	What still needs its own calculation
Next purchase deposit	Cash contributed toward the purchase price	Purchase costs, earlier payment deadlines and funds to complete
Bridging finance	Expected sale funds available to reduce the facility	The lender’s separate bridging assessment
Refinance	Cash contribution used to reduce the new borrowing requirement	Remaining debt, refinance costs and cash retained by the client
Debt payout	Sale money allocated to documented debts	Current payout for each debt and the remaining accessible cash

For the cost of buying and selling a house, keep the sale calculation separate from the purchase budget. The deposit and funds-to-complete guide explains how purchase costs sit alongside the buyer’s cash contribution. Deduct any cash the client reserves for another purpose before counting proceeds toward that budget.

Net proceeds are one input to a bridging finance assessment. Retain the amount and expected settlement date alongside the sale evidence. A net-proceeds estimate alone doesn’t establish that a bridging facility meets the lender’s requirements.

A broker can use Bulma’s Scenario Planner to assess the client’s next mortgage scenario using the documented funds position. Bulma checks scenarios against policies across 52+ lenders and quotes the policy wording behind its answers. Keep fee quotes and lender payout records as the evidence for sale costs.

Retain these records and replace estimates at the point shown.

Record	Replace the earlier estimate when
Agent appraisal or sale assumption	The signed sale contract establishes the price and settlement date
Agency agreement and campaign schedule	The signed terms establish charges, then final invoices confirm amounts payable
Legal and preparation quotes	Completed work and final accounts establish the amount, with payments marked clearly
Loan statement and indicative payout	A current lender payout establishes the amount for the settlement date
Provisional adjustments and distribution	The settlement representative provides the final statement and confirms distribution
Expected cash receipt	The account record shows funds received, or the settlement record confirms their direct application

Keep the base and downside calculations with their dates and assumptions. Once settlement completes, replace the estimate with the actual net distribution and record how much remains available for the next transaction.