Understanding estate agent commission in South Africa – and how to choose the right agent for you

Selling a home is one of the most significant financial decisions you’ll ever make, and the person who helps you through it can make all the difference. Estate agents play a crucial role in pricing, marketing, negotiating, and closing the sale — but choosing the wrong agent can lead to costly delays, stress, or even a lower selling price.

One of the first things many sellers want to know is: how much commission will the estate agent take? But just as important is ensuring that the agent is compatible with your needs and has the right expertise to get the job done efficiently.

Here’s what you need to know about estate agent commission in South Africa — and four vital compatibility checks to do before signing a sole mandate.

What is the typical estate agent commission in South Africa?

Estate agent commission is not fixed by law in South Africa, but the going rate typically ranges between 5% to 7.5% of the final selling price, plus VAT. This fee is usually paid by the seller from the proceeds of the sale.

Currently, VAT is charged at 15%, but here’s a side-by-side example to illustrate the difference between 15% and a 15.5% VAT rate

Example 1: Sale Price of R1,500,000 with 6% Commission

What does the commission cover?

A reputable agent typically offers a full-service package that includes:

• Marketing and advertising: Listings on major property portals, social media promotions, email campaigns, professional photography, and “For Sale” signage.
• Viewings and show days: Coordinating and hosting private viewings or open houses, including pre-screening potential buyers to avoid time-wasters.
• Expert advice: Help with home staging, accurate pricing via Comparative Market Analysis (CMA), and market insights.
• Negotiation and paperwork: Drafting offers, liaising with buyers, negotiating terms, and coordinating with attorneys and conveyancers.
• Support throughout the sale: From offer to registration, agents guide sellers through every step, including compliance certificates, bond cancellations, and more.

How to choose the right estate agent: 4 compatibility checks

Not all agents are created equal — and choosing someone who aligns with your expectations and needs is just as important as negotiating the commission. It is important to work with a registered real estate practitioner who understands your needs and has the experience and drive to get the results you want.

Here are four essential questions to ask before you commit:

1. “Are you qualified and registered with the PPRA?”

Before you look at marketing strategies or fees, ensure your agent is registered with the Property Practitioners Regulatory Authority (PPRA) and holds a valid Fidelity Fund Certificate (FFC). This ensures they’ve met the legal requirements, including passing their exams and earning continuing development points.

You can also ask if they specialize in certain property types — for instance, distressed properties (CDPA certification) or luxury homes — which could be relevant to your situation.

2. “How well do you know the area?”

Local expertise is critical. An agent familiar with your suburb and price range will be better equipped to suggest a competitive asking price, offer neighbourhood-specific tips, and speak knowledgeably to potential buyers. They’ll also understand current trends in your area — whether it’s a buyer’s or seller’s market, which price bands are moving quickly, and what buyers are looking for.

3. “How do you plan to market my home?”

• A strong marketing plan is essential to get your home noticed. A good agent should offer a balanced mix of:
• Listings on all major portals
• Social media promotion
• Traditional advertising (like newspaper ads, if applicable)
• High-quality photos or even 3D tours
• Open houses and private viewings

Ask how often they’ll give you updates, and whether their approach is tailored to your type of property and its likely buyer profile.

4. “How much will your commission rate be?”

Always discuss commission upfront and get it in writing. Don’t automatically go for the cheapest agent — lower fees may come with minimal service, limited marketing, and fewer resources. What matters is value: is the agent offering a full-service experience that justifies the commission?

Ultimately, the right agent is one who’s responsive, professional, honest, and aligned with your goals. Someone who will treat your home with care and your sale with priority.

Selling your home is a big step — and the estate agent you choose can have a huge impact on how smooth and profitable the process is. While commission is important, it’s not the only factor. Compatibility, professionalism, and local expertise are just as crucial.

Take your time, ask the right questions, and don’t be afraid to shop around. The right agent will welcome your questions and be eager to show you the value they bring to the table.

Ready to start your home-selling journey? Find a qualified, experienced estate agent in your area today.