Selling your home? This is what it will cost you …

Selling a home can be just as, if not more, stressful than buying a home. There are so many things to consider, especially when it comes to the costs involved. If you budget carefully and make sure you prepare for all the costs, selling your home need not be a financial nightmare that leaves you without a penny to spend on your new home sweet home.

The estate agent’s commission

If you get an estate agent to sell your home, you will need to pay them commission. The going rate in South Africa is between 3 and 7.5% of the value of your home. Many agents will be open to negotiating their commission rate, so it is worth speaking to them about it. Agents may come at a cost but, besides marketing your house for you, they have experience in what’s required when selling a home. It’s important to make sure all your paperwork is correct.

Marketing costs

Your estate agent will normally take care of this for you. If you, however, decide to sell your home without an estate agent, you may need to pay a photographer for professional photos, and cover the costs of signage and advertising. This can be time-consuming and challenging if you don’t have the experience. Make sure to factor this into your selling journey.

Professional building inspector 

While it is not a requirement, hiring a professional building inspector will help you identify any issues upfront. This will streamline the sales process because you will know what to fix at the start, and you’ll be able to tackle these key issues immediately instead of finding them out along the way. This could cause time delays and could result in the souring of a sale if the buyer thinks you were trying to get away with issues that you weren’t even aware of. It also helps you identify any problems that could hold up your clearance certificates.

Compliance certificates

You’ll have to get compliance certificates for electrical, and possibly gas, your electric fence, water or plumbing and beetle. If you need to repair anything to get these certificates, it will be at your cost. Here’s a list of the certificates you need (if applicable):

Rates, taxes and levy certificate

You will also need a rate clearance certificate to confirm that you don’t have any outstanding rates due on the property. The municipality must issue this before the transfer can take place.

Bond cancellation fees

If you still have an outstanding amount owed on your bond account, you will need to settle this. There is a discharge fee for closing the home loan. You’ll also have to pay early cancellation penalty fees if you don’t give your bank three months’ notice.

Capital Gains Tax

If you’ve lived in the property for a minimum of two years, and you expect a gain of R2 million or more, you’ll be liable for Capital Gains Tax.

Moving costs (and insurance)

The cost of moving your belongings depends on the distance and the quality of the goods that you are relocating. It is a good idea to take out temporary insurance for the move to cover any loss, breakage or theft that occurs during the move.

New home expenses

Moving into your new home is exciting. There are always things that you’d like to do to make your new house a home. Whether it’s a fresh coat of paint, new furniture or renovations, keep some money aside. It's good to have that available for your finishing touches.