When you are getting ready to sell your property, the agent's commission is often the first cost considerations you have - but there are more that you need to keep in mind during this time. We take a look at what other costs you need to keep in mind when selling a property.
Costs involved with selling a home
- Agent's commission: This is probably the most obvious cost. If you are working with a traditional real estate agency you will need to confirm the percentage of the commission with the agent. There are agencies that charge a flat-fee when selling a property and you will need to check with them what this fee is.
- Bond cancellation: This is the cancellation fee payable to the bond attorneys representing the bank that is used. Sellers can save costs by letting the bank know that the property is for sale as soon as the property is listed. Your agent will be able to advise how.
- Compliance Certificates: These include the Electrical Certificate of Compliance (COC) and costs can vary depending on the amount of work that is needed. Also, keep in mind that an electrical COC expires after two years.
Another certificate that the seller is required to provide is an Electric Fence Certificate. Costs are largely depended on whether or not work needs to be done to bring the fence up to code. If you installed the fence recently and received a certificate with installation this will be sufficient.
A Plumbing Certificate and Beetle Certificate are also required in some instances. These are to ensure that the plumbing is in order and that there are no insect infestations in the home. Cost is to be quoted for.
More here on compliance certificates - Municipality final figures: As the seller, you will need to pay around four months extra on your rates and services. You can however claim back a portion of this after the property has been sold.
- Relocation costs and administration: Moving trucks, breakages, the administration of informing people of your change of address, and taking days off work to coordinate the move should also be considered. Moving can add to your stress levels significantly.
- Sectional title clearance figures from the Body Corporate (for sectional title units): This could be a Special Levy which needs to be fully paid before the Body Corporate will issue a clearance certificate.
The followings costs are to be covered by buyers:
- Transfer costs to the transferring attorney.
- Transfer Duty is a tax payable to the government on properties over R1 million. Below are the transfer duty rates applicable on property purchased on or after 1 March 2020.
| Value of property (R) | Rate |
| 0 – 1000 000 | No transfer duty |
| 1 000 001 — 1 375 000 | 3% of the value above R1 000 000 |
| 1 375 001 – 1 925 000 | R11 250 + 6% of the value above R1 375 000 |
| 1 925 001 – 2 475 000 | R44 250 + 8% of the value above R1 925 000 |
| 2 475 001 – 11 000 000 | R88 250 + 11% of the value above R2 475 000 |
| 11 000 001 and above | R1 026 000 + 13% of the value above R11 000 000 |
- Bond attorney costs: The buyer must pay the lawyers handling the mortgage finance for the bank.
- A bond initiation fee is payable to the bank granting the bond. Banks often add this figure to the bond amount.
- A municipal deposit payable to the municipality when opening the account. You should open the municipal account as soon as possible - usually between one and two months after registration.
