Selling your home? Here are the costs to understand and budget for.

 You’ve lived there, you’ve loved it, you’ve made memories – and now it’s time to move on. Putting your home on the market and moving on to the next chapter of your life is an exciting time, but also requires careful budgeting. To help you avoid any unwanted surprises, Jawitz Properties has put together a list of the costs associated with selling your property.

 In this comprehensive guide, we’ll cover the following costs: 

1.      Cancelling your bond

2.      Compliance certificates

3.      Levies

4.      Moving costs

5.      Property practitioner fees

6.      Rates and taxes

Cancelling your bond

 Here’s the most important thing you need to know about bond cancellation fees: You will pay a penalty fee if you don’t give the bank 90 days written notice of the fact that you intend to sell your home and cancel your bond. The best thing to do is notify your bank that you intend to sell before you put your home on the market. Also, banks typically charge a penalty if you are cancelling your home loan within the first two years. While it’s important to start the bond cancellation process early, it will only be finalised once your home is sold and the bank receives final figures from the bond attorney.

Compliance certificates

Part of the property selling process is proving to your home’s new owner that the property is safe to live in. As the seller, you’ll need to obtain various compliance certificates which prove your home to be electrically compliant and free of destructive beetles. If you’re selling property in the Western Cape, you’ll also need to prove that no clean water is going to waste from your property. You’ll do this by providing a certificate of water compliance.

Levies

If you’re selling a freestanding house, this one doesn’t apply to you. But if your home is in a block of apartments, complex or estate, you may be required by the body corporate or homeowners’ association to pay levies or HOA fees in advance. This is to provide them with assurance that there won’t be a time lapse between your last payment and the buyer’s first payment.

Moving costs

It’s easy to forget this one, but don’t underestimate the potential costs of moving your belongings, especially if you’re semigrating or moving to a different part of the country. Also bear in mind that if you don’t find your dream home immediately after you sell your current home, you may also have to pay storage fees until you can move into your new home. Another factor to bear in mind is the possible need for temporary accommodation for you and your family.

Property practitioner fees

If you’ve got a property practitioner to help with your property sale, you’ll need to pay them their commission, but the advantages of selling through a property practitioner far outweigh the costs. This is especially true if you sign an exclusive mandate.

While there are costs to consider, working with a property practitioner is always worthwhile as they’ll guide you in setting the right selling price and positioning your home effectively. They will also put their expertise to work to ensure that those viewing your home are potential buyers rather than chancers. Selling a property is a complex procedure governed by legislation, and a property practitioner will empower you to navigate the process successfully.

Depending on the agency that you’re working with, this cost is usually 5-7% of your sale price.

Rates and taxes

You will likely be required to pay three to six months’ worth of rates and taxes to your local council in advance. As with the levies mentioned above, this gives the relevant authorities assurance that these costs will be paid throughout the process of you handing over the keys of your home to its new owners. If your home is sold quicker than expected and the new owner starts paying bills that you have already paid, you will be reimbursed by council.

If you want expert help in selling your property and navigating every step of the process with finesse, reach out to Jawitz Properties. Selling properties is our passion and we have the experience required to take you through the entire process, from listing your property to handing over the keys.