While agent's commission is often one of the first cost considerations that sellers think of when it comes to selling their home, there are other costs that sellers and buyers need to keep in mind as well.
Trevor Sturgess, MD of Seeff Kibler Park, always encourages his clients to look carefully at the other costs involved with selling. He says besides agent's commission (usually set between 6% and 8% plus VAT of the selling price) sellers will also need to pay the following:
Another certificate that the seller is required to provide is an Electric Fence Certificate that costs around R2000 or more depending on any work that needs to be done. If you received a certificate when the electric fence was installed this will suffice.
A Plumbing Certificate and Beetle Certificate are also required in some instances. These are to ensure that the plumbing is in order and that there are no insect infestations in the home. Cost is to be quoted for.
The followings costs are to be covered by buyers:
Buying a property of R1.5 million with a 100% bond will attract transfer fees as mentioned above of around R88 000".
How agent's commission is determined and what agents do to earn their commission
Steve van Wyk, Seeff's MD in Centurion, says while agent's commission is often set at around 7% of the value of the property plus VAT, sellers and agents can always choose to negotiate a set fee instead.
"While it may seem like a practical and affordable idea to privately advertise your property instead of using an agent, this decision could end up costing you a lot of time and much more money than what the agent's commission would've been in the first place.
Agents perform various duties and have knowledge of legislative procedures that an owner will not necessarily even be aware of.
Not only do they negotiate for the seller and connect the seller with strategic partners like conveyancing attorneys, but they also research recent sales in the area in order to determine a realistic listing price, advise on repair work that should be undertaken prior to listing, create a marketing plan that works for the seller and screen suitable purchasers before introducing them to the property amongst others.