Costs Involved when selling or buying a property

With fair market value a priority for today’s consumers, for homeowners wishing to sell or rent out their properties it is critical that the home is pitched at an accurate, marketrelated price that will enable it to compete with other comparable properties for sale or rent in the area.

By making sure that your home is priced appropriately and is show-ready, you will increase your chances of a sale within a reasonable amount of time.

The pitfalls of overpricing

• Lack of buyer activity

• Extends marketing time

• Forces price reductions

MARKET VALUE = PRICE A PROPERTY SHOULD SELL FOR ON THE OPEN MARKET

Purchaser

Transfer and bond registration costs:

A Transfer duty and other transfer costs

B Bond registration costs or bank guarantee cost (if applicable)

C Bank initiation fee

A + B + C = Total costs

Total cash required upfront

Deposit, if applicable, plus costs A + B Seller

• Bond cancellation fee. It is important to submit a notice to the bank in writing for the cancellation of the bond. A three months’ notice is required to avoid penalties.

• Outstanding amounts payable in respect of an estate/sectional title levy Municipal services fees

• The seller is responsible for all costs involved to obtain valid compliance certificates e.g. electrical certificate, gas certificate and electrical fencing.