The costs at a glance
The costs of selling a house depend heavily on the canton, the property and how long you have owned it. The overview below shows the typical items. The amounts are guidelines and do not replace a case-by-case assessment.
| Item | Guideline | Who pays | Note |
|---|---|---|---|
| Documents such as land register extract and plans | About CHF 100 to 200 | Seller | Depending on municipality and effort |
| Market valuation | About CHF 1'000 to 2'000 | Seller | Often included in an agent's mandate |
| Agent's commission | Often 2 to 3 percent of the sale price | Seller | Usually only if the sale succeeds |
| Property transfer tax | Cantonal, none in some cantons | By law often the buyer, in practice sometimes shared | Not levied in the canton of Zurich |
| Notary and land registry fees | Vary by canton | By law or contract, often split equally | Settle in the purchase contract |
| Property gains tax | Depends on gain and length of ownership | Seller | Often the largest single item |
| Early repayment penalty | Depends on remaining term and interest rates | Seller | Only if a fixed-rate mortgage is terminated early |
Costs before the sale
Before a listing goes online, two items usually arise: documents and valuation. Typical documents include the land register extract, the official valuation, the building insurance policy, floor and cadastral plans, and evidence of renovations. Together they usually cost only a few hundred francs, but give prospective buyers a complete picture quickly.
An independent market valuation by a property valuer often costs CHF 1'000 to 2'000. It is particularly worthwhile if you sell without an agent or if several agents' assessments differ widely.
Renovate with restraint
Freshly painted walls, smoothly working doors and windows and a tidy garden improve the impression at viewings. Major alterations rarely pay off, because buyers often want to adapt a property to their own taste.
Agent and marketing
The agent's commission is often the largest item you can influence directly. It is usually success-based and often 2 to 3 percent of the sale price, typically plus VAT. Clarify which services are included: valuation, photos, listings on property portals, viewings, negotiations and support up to notarisation.
Selling without an agent saves the commission, but you bear listing costs, time and the risk of a wrong price yourself. An asking price set too high often leads to long marketing periods and later price cuts, which can cost more than a commission.
Taxes and fees
Property transfer tax
Property transfer tax falls due when ownership is transferred and is regulated by the canton, sometimes by the municipality. Some cantons levy none, including Zurich. In the canton of St. Gallen, for example, it is 1 percent of the purchase price. By law the buyer often owes it, but in practice it is frequently split equally. This is a matter for negotiation and belongs in the purchase contract.
Property gains tax
Property gains tax is levied on the gain, i.e. the difference between the sale proceeds and the investment costs. Investment costs include the original purchase price, value-enhancing investments and certain selling costs such as the agent's commission. The longer you have owned the property, the lower the tax usually is; many cantons add surcharges for short ownership periods. If you sell an owner-occupied home and buy a replacement within a reasonable period, the tax can be deferred in full or in part.
Keep receipts and check cantonal rules
Only documented value-enhancing investments reduce the taxable gain. Keep invoices for the entire period of ownership. Rates, deadlines and deductions vary widely between cantons and change over time. Have the tax estimated before the sale by the tax office, a notary or a tax specialist.
From sale price to net proceeds
What matters is what actually remains in your account after the sale. Calculate as follows:
- Sale price
- minus repayment of the mortgage
- minus any early repayment penalty on a fixed-rate mortgage
- minus agent's commission and marketing costs
- minus your share of transfer tax, notary and land registry fees
- minus property gains tax
- equals net proceeds
Because many cantons have a statutory lien for property gains tax, buyers or notaries often require part of the purchase price to be secured for it. Do not earmark this amount for your next purchase until the tax has been assessed.
Talk to your bank early as well. A fixed-rate mortgage can sometimes be transferred to a new property, avoiding the early repayment penalty.