Sellers guide: The costs involved with selling your home

Private Property Reporter • Mar 16, 2020

Below is a list of most of the costs incurred when selling your home. However, they are by no means the only ones. Especially if you are buying another home. Re-connection or relocation of your services are costs to keep in mind.

Advertising costs
If you use an estate agent, this should be covered by them.

Compliance certificates
There are numerous certificates that may be necessary, such as levy clearance certificates, electrical certificate of compliance, plumbing certificate of compliance and so forth.

Rates and taxes clearance certificate
This is obtained from the municipality stating that your rates and taxes are paid up to date. Rates and taxes have to be paid 4 – 5 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. The Cancellation Attorneys are appointed by your home loan bank.

Estate agent’s commission
The commission is usually calculated as a percentage of the selling price. There is no set rate of commission and it is negotiable with the estate agent.

Capital Gains Tax
An individual is exempt from CGT on the sale of a primary residence (the home you physically occupy) where the gain/loss is not more than R 2 million. If you sell a second or third property (one in which you don’t live), you will be liable to declare any capital gain to SARS and pay the tax on that gain.

Moving costs
These can be obtained by getting quotations from removal companies.

Now that you know who is going to sell your home...
you have decided on a selling price...
your home is ready to be sold...
you are actively advertising it...
and you understand the costs of selling...

The next step in your Sellers Guide is "Moving":