SELLERS, BE AWARE OF COSTS BEFORE YOU SELL YOUR PROPERTY!
The cost of selling your property in South Africa
We, as Professional Property Practitioners at the Pretoria Moot Branch of Property Fox, specialize in the selling of residential properties. We often encounter that Sellers are unaware of the costs involved during and after the sale of their property. The costs play a fundamental role in the outcome of the monies expected to reflect in your bank account.
It is better to rather make an informed decision than being shocked at the net amount being payed to you after registration of the property. Some sellers, especially in Pretoria Moot suburbs, like to scale down after retirement by selling a large property and the younger generation, starting a family, would like to upscale and sell their apartment to purchase a house with a garden. Either way, when you need to sell your property, big or small…the same costs will have to be made in order to move on.
The following costs must be taken in consideration before the seller starts to market the property.
- Valuation or Evaluation of your property.
Start the property selling process with the correct knowledge based on facts before entering the market. A Valuation done by an independent valuer will come at a price but you will know exactly what a financial institution will be able to borrow a purchaser against the value of your property. We, as Property Practitioners in the Moot have an advantage by doing an accurate evaluation through our head office at Property Fox Cape Town, using an algorithm taken all factors in consideration before determining a precise market related selling price. This service is free of charge! Once you have the selling price in place, you need to take the other costs in consideration before a final decision to sell your property.
- Professional photographer. To enable your property to “stand out” and compete with other similar properties, you need to stage your property correctly and let a professional photographer do the rest. Photographers specializing in our field are expensive. We, at Property Fox invested in the services of some of the best photographers in the country. This service is free of charge to our mandated clients!
- Advertising costs. Professional marketing on different platforms are costly and of utmost importance when selling your property. You only get one chance to make a first impression therefor, do it right from the start. Property Fox MOOT guarantees that you property will get extensive professional exposure on all the prominent platforms as well as social media free of charge!
- Compliance certificates to obtain in Pretoria before registration of your property.
- Electrical Certificate
- Electrical Fence Certificate
- Gas certificate
- Termite certificate (If stipulated in the Offer to Purchase)
- Building plans: Refer to the contract. You, as the seller can get the building plans drawn and submitted even during the selling process on the condition that it must be approved by City Council even after registration. Very important! Make sure that none of the structures erected on the premises are on a servitude. At Property Fox we’ll assist you in this regard to assure peace of mind or advise you as to the way forward.
- Approved building Plans
- Occupational certificate
- Engineers Report. Due to the soil in the Moot, purchasers often ask for an engineer’s report and occupational certificate.
- Municipal Accounts
In order for the transfer to go ahead a rates and taxes clearance certificate from the City of Tshwane must be obtained. This fee, between three and six months, is charged to make sure that rates and taxes on the property will still be paid while the registration process is underway. The municipality will later refund you if the registration process is completed within a shorter timeframe than what was billed for.
- Bond Cancellation Fees
- Each financial institution will have their own rules and applicable charges for cancelling an existing bond, so sellers will have to enquire with their financial institution to discover what they can expect to pay. This is paid to the Cancellation Attorneys for cancelling your existing bond. The Cancellation Attorneys are appointed by your home loan bank.
- Most financial institutions require either a 60 or 90 day notice period, otherwise penalty fees will be charged. To avoid these costs, a email should be sent to the bank to alert them of an intention to sell.
- Levy
If you live in a sectional title estate, you could be charged levies for three months before the registration of your property. Sellers should speak to their HOA or Body Corporate to find out about these costs.
- Tenant Deposit
If you are renting your property to a tenant, you will need to repay their deposit with interest. You should also make room in your budget to pay for any possible repairs in case there are any damages to the property after they vacate.
- Repairs and Maintenance. In order to present your property well, you might have to spend some money to achieve the highest selling price. Consider the following:
- A fresh coat of paint in and outside
- The condition of the roof and gutters
- Is the plumbing in a good condition or needs attention
- Security systems: excellent security is important
- Keep your kitchen and bathrooms clinically clean
- In case of carpets, clean them properly before marketing
- Windows: keep them shiny and spotless and replace the broken ones
- Less is better than more
- The swimming pool and water features. Keep it clean and all equipment in working condition.
- Remove the rubble and garden refuse from the property
- A well-kept garden is a winner!
- Capital Gains Tax. It is advisable to consult your accountant if you fall in the following categories:
- 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.
- Estate agent’s commission.
The commission is calculated as a percentage of the selling price. Property Fox is registered as a vat entity. A percentage commission will be negotiated between Property Fox and the seller. There is no set rate of commission. We therefor would like to negotiate a rate to the satisfaction of both parties.
Make the right choice when deciding on a Professional Property Practitioner to enter this journey where you need the correct guidance, professional advice and after sale service. Most of the time, selling a property is an emotional path filled with ups and downs. We, as your fully accredited Professional Property Practitioners at Property Fox Moot would love to be of your assistance during the entire process. We’ve dealt with all kinds of transactions during our 30 years as Property Practitioners in the Moot and would like to make your journey less confusing and less stressful. We will be by your side every step of the way!
Now that you, as a potential seller decided you are ready to take it a step further, make Property Fox Moot your choice as your partner in Business…let’s do it together and put “SOLD” on your “FOR SALE” listing!