What costs will I incur when selling my house?

The real estate agent's commission: The largest service charge

If you decide to hire a professional, the commission is the most visible component of the costs involved in selling your house . In Switzerland, real estate agent fees typically range between 2 and 3 percent of the sale price, plus VAT. For a house worth one million Swiss francs, this quickly adds up to 25,000 to 35,000 francs that you have to factor into the overall costs of selling your house .

Is that too much? It depends. A good real estate agent often achieves a higher selling price, which offsets the cost of their services. Furthermore, this commission usually includes all marketing measures (photos, listings, viewings). If you sell privately, you save on this part of the selling costs , but you have to cover the fees for real estate portals (approx. 200–500 Swiss francs per month) and your own time.

Notary and land registry office: The official costs of selling a house

No transfer of ownership without notarization. The costs for the notary and the land registry when selling a house are regulated by law, but vary considerably.

• Notary fees: These are usually in the per mille range of the sale price (often 0.1% to 0.5%).
• Land registry fees: Here too, a per mille rate is usually charged (approx. 0.1% to 0.3%).

An important aspect of the costs of selling a house : Who pays for it? In many cantons (e.g., Zurich, Bern), it is customary for the buyer and seller to split these costs equally. In other cantons (e.g., Geneva, Vaud), the buyer traditionally pays the lion's share. Consulting the cantonal customs is necessary to correctly budget for this part of the house sale costs .

The capital gains tax on real estate: The great unknown

It's the "elephant in the room" when it comes to the costs of selling a house . The capital gains tax is levied on the net profit – that is, the difference between the original purchase price (plus value-enhancing investments) and the current selling price.

This tax has a massive impact on the final cost of selling a house . The amount depends on two Factors depend on:

• Amount of profit: The higher the profit, the higher the tax rate (progression).
• Length of ownership: The longer you have owned the house, the lower the tax rate (holding period deduction). Those who sell after two years often pay 40% tax or more. Those who sell after 20 years pay ... perhaps only 5% more .

Tax advisors therefore consider this item one of the most variable costs of selling a house . Important: In almost all cantons, a statutory lien exists. If the seller doesn't pay the tax, the authorities can seize the property. For this reason, buyers often transfer this portion of the house sale costs directly to the tax office or into an escrow account, not to you.

Property transfer tax: A thing of the past?

In some cantons (e.g., Bern, Lucerne, Solothurn), property transfer tax is also included in the costs of selling a house . It usually amounts to 1 to 1.5% of the purchase price. Zurich and Schwyz have abolished this tax for residential properties. Where it still exists, it is often split equally or paid by the buyer. Check carefully whether this item will increase your overall house sale costs .

The bank: Prepayment penalty

An often overlooked part of the costs of selling a house lurks in your mortgage. If you have a fixed-rate mortgage with a remaining term of, for example, 5 years and sell today, the bank misses out on the interest earned. The bank demands compensation for this: the so-called prepayment penalty. In times of falling interest rates, this fee can be extremely high and quickly add 10,000 to 50,000 Swiss francs to the costs of selling your house . Tip: Sometimes the mortgage can be transferred to the buyer or carried over to your new property. This eliminates this part of the house selling costs .

Preparation costs: Energy certificate and documents

Before the house goes on the market, there are minor costs associated with selling the house .

• GEAK (Building Energy Certificate of the Cantons): In some cantons (e.g., Vaud, Fribourg), it is mandatory upon change of ownership. Cost: approximately 600 to 1,000 Swiss francs.
• Obtaining documents: Land registry extracts, cadastral maps, or safety certificates (SiNa) for the electrical installations (must not be older than 5 years). These administrative costs for selling a house often amount to between 500 and 1,000 Swiss francs.

Cleaning and clearing

Once a house is sold, it must be handed over in a clean and tidy condition. The cost of a professional house clearance and final cleaning with a guarantee of acceptance ranges from 1,000 to 3,000 Swiss francs, depending on the size of the property. Skimping on this could lead to problems during the handover.

Conclusion

The question "What costs will I incur when selling my house?" can't be answered with a single number, but it can be estimated fairly accurately. As a rule of thumb, you should expect to pay around 3 to 5% of the sale price for real estate agents, notaries, and other fees – excluding capital gains tax. If a high capital gains tax or a prepayment penalty from the bank is added, the costs of selling your house can increase significantly.

Transparency is your best protection. List all potential costs of selling your house early on and review your mortgage agreements. Knowing the costs of selling your house allows you to set a realistic asking price and avoid disappointment with the net proceeds.

If you are looking for a transparent overview and support to optimize your house sale costs and make the process efficient, Loft offers you modern approaches for this.

Glossary

• Capital gains tax: A tax on the profit from the sale of real estate. It is often the largest variable item in the costs of selling a house and decreases with a longer holding period.
• Prepayment penalty: A penalty fee charged by the bank if a fixed-rate mortgage is terminated early. It can unexpectedly increase the costs of selling a house .
• Property transfer tax: A fee levied in some cantons when ownership changes. It is often split between buyer and seller .
• Real estate agent commission: The success fee for the sale, usually 2–3% of the price. A significant part of the costs of selling a house , but one that saves time and often increases the proceeds.
• SiNa (Safety Certificate): A document confirming the safety of the electrical installations. If the last certificate is older than 5 years (in the case of a change of ownership), it must be renewed.