3 Costs of Selling Property
The bulk of your costs is in the agents commission. This is calculated as a percentage of the selling price. The percentage is agreed upon between seller and agent, usually 5% + VAT.
Example: Selling Price = R2 000 000.00
Agents commission = 5% +VAT of R2 000 000 = R115 000.00
Before transfer can be effected the property must be found compliant in these areas:
Electrical, Electric Fence, Pests, Water (only in Cape Town), Gas.
If you do not have an electric fence or gas installation then you do not need to get a Compliance Certificate for these. Each certificate could cost roughly R900 each. However if there are any problems found, these need to rectified and would cost extra. It is a good idea to budget R5000 for each certificate, just in case.
All rates and taxes must be up to date before transfer. The seller will need to pay up any rates and taxes which are overdue. The municipality will
also require the seller to pay 3-6 rates up front. This is cover to the rates and taxes which
would have been payable over the coming months whilst the property is in transfer and still
in the seller’s name. However, if the property is transferred within the time that the rates
have been paid for, the municipality will refund the seller the appropriate pro-rata amount.
These are just 3 of the costs you can expect to incur whilst selling your property. On top of this you should budget for Capital Gains Tax, bond settlement amounts and bond cancelation fees.