How much does it really cost to sell a home?
PUBLISHED 26 JUL 2018
Selling your home isn't just about making money - there are costs involved too. Knowing what they are will help you plan your budget as you wait for your sale to be finalised.
If you’re thinking of selling your Cape Town home, you’re probably focused on how much you’ll get for it, how much commission the agent will take, and where to move next. At an exciting time like this, fees and realty paperwork may be the last thing on your mind - but knowing about them will save you time, money and hassles.
In order to facilitate your sale, there are several costs you should budget for that will help to get the deal done. By making provisions for these costs, you'll be able to manage your finances like a pro while you wait for the sale to come through.
Before your home can be sold, you'll have to get some inspections done to comply with the law. These include:
- Plumbing certificate - this ensures that there aren't any major pipe leaks
- Electrical compliance - to certify that your home’s electric wiring is safe
- Beetle certificate - this strange sounding document proves that your home isn't infested by beetles that cause structural damage
Each of these certificates can cost between R500 and R1 000 or more, and the conveyancing attorneys (the lawyers handling the sale) may ask for additional documents. While not a requirement, a home inspection report can be a deal clincher. All in all, R5 000 is a good minimum amount to budget for compliance expenses with a further R3 000 – 4 000 for the home inspection.
Rates, taxes and levies
Before the sale can go through, you'll need to prove that you've paid all outstanding rates, taxes and levies (if your property is a sectional title unit).
- Since the new owner becomes liable for all debts linked to the property, they’ll want to see proof that they are only paying for taxes and services they use after the sale.
- You'll need to pay the rates and taxes, water and electricity and levies up to date, and get a certificate of payment from your local municipality.
- Your body corporate can draw up a letter stating that you've paid your levies up to date.
Many sellers will request that you pay the bills up to two months in advance after the date of transfer. While this may seem unfair, it's a great way to give them confidence in the deal and get your property sold.
If you have a bond on your current home, regardless of what’s outstanding you will need to use an attorney to cancel it. An administration fee will be charged for this facility and can cost anywhere between R3 000 and R5 000.
Knowing what you can afford to spend on a new home is made that much easier when you use a bond or affordability calculator to determine monthly bond repayments.
If you're looking to sell your home in Cape Town, we’d love the chance to find you the best buyer at a price you'll really get excited about.
Feel free to contact us today and talk to one of our team members - they have all the answers you need. Image Credit:https://pixabay.com/en/coins-banknotes-money-currency-1726618/