What are the costs of selling a flat?

Selling a flat involves many costswhich owners often do not think about at the beginning. Many people focus only on the price they will receive for their property, but forget about the expenses that have to be incurred throughout the process.

The main cost categories are:

• taxes and compulsory levies
• preparing the flat for sale
• broker's fee and marketing
• notarial and legal fees

Some of these costs are mandatory - arise from the law and cannot be avoided. Other expenses are optional and depend on how you want to prepare the flat for sale.

Knowing all costs allows:

• realistic estimation of sales profit
• setting the right sales price
• avoiding unpleasant financial surprises
• make informed decisions about investing in renovation

A well-planned budget for the sale of a flat is the basis for a successful transaction. It is a good idea to estimate all expenses in advance so that you know how much will actually be left in your pocket after the sale.

Tax on the sale of a flat

Income tax on capital gains

The mandatory cost is income tax calculated on profit from sales. The profit is the difference between the sale price and the purchase price of the flat. Documented costs related to the acquisition and improvement of the property can be deducted from this amount.

Tax exemptions - when you don't pay tax:

Type of exemption	Conditions
After five years of acquisition	You have owned the dwelling for at least 5 years
Expenditure for own residential purposes	Sell after 3 years and use the money for housing purposes

Costs of preparing a flat for sale

Basic interior refreshment

Painting the walls is the most common pre-sale investment. The cost depends on the area of the flat and the quality of materials chosen. Fresh walls greatly improve the first impression when viewing.

Minor repairs and upgrades

Most flats require minor repairs prior to sale:

• replacing damaged tiles
• repair of taps and faucets
• replacement of lighting
• floor renovation
• repairing minor damage

Professional cleaning

Many people choose to thorough cleaning by a cleaning company. A clean flat looks much better at shows.

Intermediary's remuneration and marketing costs

Real estate agency commission

Standard commission represents a percentage of the value of the transaction. The amount of the commission depends on:

• the range of services provided
• the type of contract with the intermediary
• local market conditions
• the reputation of the estate agency

What is included in the services of the office:

• professional photos of the flat
• Online and offline marketing
• carrying out demonstrations
• assistance in negotiations with buyers
• formal and legal services

Self-selling costs

If you decide to sell without an intermediary, you have to factor in marketing costs:

Professional photographs
Good photos are the basis for a successful sale. Flats with professional photos sell faster and for a higher price. This is one of the most important investments when selling yourself.

Advertisements on portals
Publication on popular property portals is a fixed monthly cost that depends on the number of portals and the promotional package. The more portals, the greater the chance of reaching buyers.

Promotional material
Leaflets, billboards and other promotional material can help to reach more potential buyers, especially for flats in attractive locations.

Cost of time and limited availability

Self-selling requires a significant time commitment. You need to be available for shows at various times, often at weekends or evenings. Limited availability could mean loss of potential buyerswho are looking for a flat within a specific timeframe. In addition, a lack of negotiating experience can lead to a sale for a lower price than a professional intermediary would achieve.

Additional formal, legal and notary fees

Notary fees - mandatory costs

Notary's fees for drawing up the notarial deed of sale is regulated by law. The amount depends on the value of the property.

Extracts from land registers

For the transaction, copies of the land register are needed. 

Deletion of the entry of ownership

After the sale of the flat, you have to pay for the deletion of the ownership entry from the land register.

Additional costs with a mortgage

If the flat is mortgaged, cancellation of mortgage entry generates additional costs.

Other documents and opinions

In some cases, additional documents are needed:

• certificates from property management
• legal opinions
• technical expertise

Valuation by the valuer

Some transactions require professional real estate valuation carried out by an approved expert.

Legal services - when you need them

In complex cases such as inheritances or joint ownership, you may need a assistance of a lawyer. Professional legal services ensure the safety of the transaction.

How much you will actually earn from the sale of your flat

Total costs of selling the flat can represent a significant percentage of the value of the property. The amount depends mainly on the value of the flat, its technical condition and the chosen sales strategy.

Key cost categories:

Mandatory taxes and charges - can account for a significant proportion of the profit, but tax exemptions are often available. Some fees are unavoidable with any transaction.

Preparation of the dwelling - from basic refreshing to comprehensive renovations. Investment in renovation increases the attractiveness of the offer and achieves a higher selling price.

Remuneration of the intermediary - A commission payable in the event of a successful sale of the flat. It represents a percentage of the final transaction price. Real estate office provides professional service and access to a larger group of buyers.

Formal and legal fees - notary, extracts from land registers and other documents. These costs are unavoidable with any transaction.