Selling a house isn’t just about listing it and waiting for offers. Many homeowners focus on the potential profit without considering the hidden costs involved in the process. From agent commissions and legal fees to compliance certificates and moving expenses, these costs can significantly impact your final earnings.
If you’re planning to sell your home in South Africa, understanding these expenses will help you budget accordingly and avoid unexpected financial surprises.
1. Estate Agent Commission
Most sellers rely on estate agents to handle the sale of their property. While this service is valuable, it comes at a cost.
💰 How much does it cost?
- Estate agent commissions typically range from 5% to 7.5% (+ VAT) of the selling price.
- If you sell your home for R2 million, an agent charging 7% would take R140,000 + VAT in commission.
🔹 Tip: You can negotiate commission rates or consider selling privately to save on fees. However, an experienced agent often ensures a faster sale at a better price.
2. Bond Cancellation Fees
If you have an existing home loan, you can’t simply settle the bond and walk away. South African banks charge a bond cancellation fee when you settle your mortgage before the full term ends.
💰 How much does it cost?
- Typically R3,000 to R5,000 per bond cancellation.
- Some banks also require 90 days’ notice before cancellation—if not provided, you may need to pay additional interest penalties.
🔹 Tip: Inform your bank as early as possible to avoid unnecessary penalties.
3. Compliance Certificates
Before transferring a property, sellers must obtain various compliance certificates, ensuring that the home meets safety regulations.
💰 What are the required compliance certificates?
- Electrical Compliance Certificate (COC) – Ensures the electrical wiring is safe (± R800 – R2,500).
- Electric Fence Compliance Certificate (if applicable) (± R800 – R1,500).
- Plumbing Certificate (Cape Town only) – Confirms there are no leaks or water wastage (± R1,000 – R1,500).
- Beetle Certificate (Coastal properties) – Confirms no wood-boring beetle infestation (± R500 – R1,500).
- Gas Compliance Certificate – Required if your home has a gas installation (± R1,000 – R2,000).
🔹 Tip: If repairs are needed to meet compliance standards, costs can escalate significantly. Factor this into your budget.
4. Rates & Levies Clearance Certificate
To finalise the sale, municipalities require a rates clearance certificate, proving that all municipal bills (water, electricity, rates, and refuse removal) are up to date. If your home is in a sectional title complex or estate, levies must also be cleared.
💰 How much does it cost?
- You may need to prepay up to 6 months’ worth of rates, utilities, and levies in advance.
- Depending on the property, this could range from R5,000 to R30,000.
🔹 Tip: If overpaid, the municipality or body corporate refunds the balance after the transfer is completed.
5. Capital Gains Tax (CGT)
Capital Gains Tax applies when selling a property that isn’t your primary residence or if the profit exceeds a certain threshold.
💰 How is it calculated?
- Primary residence exemption: The first R2 million profit is tax-free.
- If your profit exceeds this, 40% of the gain is taxable, based on your income tax bracket.
📌 Example:
If you bought a home for R1 million and sold it for R3.5 million, the taxable portion would be:
R3.5m – R1m = R2.5m gain
After the R2m exemption, the taxable portion is R500,000, and 40% of this (R200,000) is added to your taxable income.
🔹 Tip: Consult a tax expert to explore deductible expenses (e.g., renovations, legal fees) to reduce your CGT liability.
6. Moving Costs
Once your home is sold, you’ll need to relocate, which comes with extra expenses.
💰 What costs should you expect?
- Professional movers: R5,000 – R30,000, depending on the distance and size of the move.
- Storage fees: If there’s a delay in moving to your new home.
- Utility deposits & reconnections: For your new residence.
🔹 Tip: Get quotes from multiple moving companies and declutter before moving to save costs.
7. Repairs & Staging Costs
To attract buyers and secure a higher selling price, you might need to invest in repairs and staging.
💰 What are common costs?
- Painting & cosmetic touch-ups: R5,000 – R50,000
- Garden maintenance & landscaping: R2,000 – R10,000
- Deep cleaning & professional staging: R3,000 – R20,000
🔹 Tip: Small improvements like fresh paint, fixing leaks, and decluttering can significantly increase your home’s appeal without major spending.
8. Attorney Fees (Conveyancing Costs)
Sellers must hire a conveyancing attorney to handle the legal transfer of the property.
💰 What are the costs?
- Seller’s attorneys: R4,000 – R8,000
- Bank attorneys (if cancelling a bond): R3,000 – R5,000
🔹 Tip: Some costs are negotiable, so compare fees before appointing an attorney.
Total Estimated Hidden Costs When Selling a House
| Expense | Estimated Cost (R) |
|---|---|
| Estate Agent Commission | 5% – 7.5% of sale price |
| Bond Cancellation Fees | 3,000 – 5,000 |
| Compliance Certificates | 4,000 – 8,000+ |
| Rates & Levies Clearance | 5,000 – 30,000 |
| Capital Gains Tax (if applicable) | Varies |
| Moving Costs | 5,000 – 30,000 |
| Repairs & Staging | 5,000 – 50,000+ |
| Conveyancing Attorney Fees | 4,000 – 8,000 |
👉 Potential total costs: R30,000 – R200,000+, depending on property value and necessary expenses.
Frequently Asked Questions
What is the biggest hidden cost when selling a house?
The estate agent’s commission is typically the largest expense, ranging from 5% to 7.5% of the selling price.
Can I sell my house without an estate agent?
Yes, you can sell privately, but you’ll need to handle marketing, negotiations, and paperwork yourself.
How can I reduce selling costs?
Negotiate agent commissions, compare attorney fees, and only do essential repairs before listing your home.
Final Thoughts: Be Prepared Before You Sell
Selling a house involves more than just finding a buyer. By understanding hidden costs, you can price your home correctly, budget wisely, and maximise your profit.
✅ Plan ahead: Factor these expenses into your selling strategy.
✅ Negotiate costs: From agent commissions to legal fees, some expenses can be reduced.
✅ Seek expert advice: A property professional can guide you through the process.
