Things to budget for when selling your property

Selling your property is an exciting time, and a time when you are typically thinking about the next property you are going to buy or the profit that you are about to realise from your investment. It's important to remember that there are also expenses involved in selling property, and Jawitz Properties provides a rundown of these costs so you can budget correctly and enjoy a stress-free property sale.

Bond cancellation fees

If you still have a bond on the property that you are selling, you will need to factor in bond cancellation fees, which will be determined by the bank or financial services provider with whom you have the home loan. In most cases, you'll need to give notice of either 60 or 90 days to avoid penalty fees. As soon as you put your property on the market, you should inform the bank in writing of your intention to sell.

Municipal rates clearance

Part of the process of selling a property is getting a rates clearance certificate from the municipality. This provides the Registrar of Deeds with proof that you don't owe any money to the municipality. Your conveyancer will request the rates clearance figures from the city council and you will need to make payment through the conveyancer. Since the rates clearance certificate must be valid for 60 days, you will typically be required to pay an advance amount. Once the municipal charges have been transferred to the new owner, there is often a refund due to you as the seller. This refund is not paid automatically and must be requested from the municipality after the transfer formalities have been concluded.

Levies and Homeowners Association fees

If the property you are selling is part of a sectional title scheme or a homeowners' association, you may need to pay approximately three months' worth of levies before the sale goes through. This is the scheme or association's way of ensuring that there is no shortfall between the time that you decide to sell and the time the person who buys your home moves in. There is no set rule or fixed amount that you have to pay, so you will need to consult with the trustees of your building or estate to get all the information you need.

Compliance certificates

Another expense for property sellers to keep in mind relates to the various compliance certificates that must be obtained. In addition to paying for the actual inspections to be carried out, you will need to pay for any issues picked up by the inspectors to be sorted out. Depending on your home, the list of inspections that need to be done can include electrical, gas, beetle and electric fence.

Tenant deposit

If you are selling an investment property, you will need to cover the cost of your tenant's deposit, as well as the interest that has accrued on this amount. It will also be your responsibility to pay for any repairs that need to be done after the tenant moves out.

Estate agent's commission

The estate agent's commission is paid right at the end of the property sale process, once all conditions in the contract have been fulfilled and the property has been transferred out of your name and into the buyer's name. This commission covers the cost of the agent's time spent marketing your property, liaising with potential buyers and ensuring that the entire process runs smoothly.

Jawitz Properties #RealPartners have over 52 years of experience in making every part of the property selling process run smoothly. Contact us today for more information and assistance with your next real estate transaction.