Getting ready to sell your home? Remember to consider these costs during the selling process.
When selling a house in South Africa, there are several costs you may incur. The specific expenses can vary depending on factors such as the property’s value, location, and the terms negotiated with service providers. Here are some common costs to consider:
1. Estate agent commission: If you choose to work with a real estate agent, they will typically charge a commission based on the sale price of the property. The commission rates can vary but are usually around 5-7% plus VAT.
2. Conveyancing fees: Conveyancing is the legal process of transferring the property’s ownership. You will need a conveyancer or conveyancing attorney to handle the legal aspects of the sale. They will charge a fee for their services, which is typically based on a sliding scale depending on the property value.
3. Compliance certificates: In South Africa, sellers are often required to obtain certain compliance certificates before selling the property. These may include an electrical compliance certificate, beetle certificate, gas compliance certificate (if applicable), and plumbing certificate. The cost of obtaining these certificates can vary.
4. Home staging and repairs: To present your property in the best possible light, you may consider home staging or making necessary repairs. While these costs are not mandatory, they can help enhance the appeal and value of your home.
5. Municipal rates and levies: Depending on the municipality or complex where your property is located, you may need to settle outstanding municipal rates and levies before the sale. These charges can include property rates, water, electricity, and homeowners’ association fees.
6. Capital Gains Tax (CGT): If the property is not your primary residence or if it has appreciated in value since acquisition, you may be liable for CGT. Consult with a tax professional to determine if CGT applies to your situation and to calculate the potential tax liability.
7. Bond cancellation costs: If you have an existing bond on the property, you will need to settle any outstanding bond amount and pay for bond cancellation costs. These costs can include bond cancellation fees, pro-rata interest, and bond settlement fees.
It’s important to note that this list is not exhaustive, and there may be other costs or fees associated with selling a house. It’s recommended to consult with a real estate agent, conveyancer, or financial advisor to get a more accurate estimate of the expenses you may incur based on your specific circumstances and location.