The following are costs that you will incur when selling a home:

  • Estate Agent’s Commission; Their commission is negotiable, but you can expect to pay about six to seven percent excluding VAT of the selling price of your property

  • Conveyancer’s Fees for cancellation of his bond over the property;

  • Capital gain tax; The first R 1 million of a capital gain made on your residence is exempt from capital gain tax. If you have owned your property for many years, there is a good change you could make a profit of more than R 1 million. If you do, you are on the top marginal tax rate of 40 percent and you can bank on paying the taxman an effective 10 percent on your profit.

  • Electrical and beetle certificates; The seller is obligated to give the buyer an electrical compliance certificate and is liable to pay the cost of any repairs to the electrical installation. The cost of the certificate may vary depending on the area and contractor, but you should set aside about R 450.00 for the certificate alone. You will also have to provide a certificate stating that your home is free of borer beetles.

  • Bond cancellation cost; If you are cancelling your Home Loan within the first two years of taking it up, it is likely that your bank will charge you a cancellation fee. This fee amounts to one percent of the outstanding balance of your bond. Whenever you cancel a bond, your bank may require three months notice of your intention to cancel the bond. If you do not give notice the bank may charge you interest for up to three months.

  • Advertising Costs; If you use the services of an estate agent, this cost is usually covered by the estate agent.

  • Compliance Certificates; An Electrical Compliance Certificate is required by law for the property to be transferred to the buyer’s name. This, and any electrical repairs that need to be made, is for your account. You may also be required by the buyer’s bank to provide a Beetle/ Infestation Clearance Certificate

  • Rates and Taxes Clearance Certificate; This is obtained from the local authority or body corporate stating that your rates and taxes or levy are paid up to date.

    • Rates and taxes have to be paid 4 months in advance before registration, of the property into the name of the new buyer, can take place

  • Bond Cancellation Fees; This is paid to the Cancellation Attorneys for cancelling your existing bond.

  • Estate Agent’s Commission; This is usually a percentage of the selling price. There is no set rate of commission. The rate of commission is negotiable with the estate agent.

  • Capital Gains Tax (CGT); CGT does not apply to the sale of your primary residence, providing the property is smaller than two hectares and/or the profit from the sale of it is less than R1,5 million

  • Moving Costs; Moving costs can only be obtained by getting quotations from removal companies.