When selling a property, it’s crucial to be aware of several upfront costs that need to be settled before the transfer process. Sellers should ensure they have enough savings set aside before listing their property to avoid unexpected financial stress.
Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, highlights that while an agent’s commission is paid after the transfer, other expenses such as home inspection fees, compliance certificates, and municipal rates and levy clearances must be paid before the transfer can proceed.
Some costs, like the rates clearance certificate, are relatively straightforward to budget for. The local council typically requires about three months of rates payments upfront. To estimate this amount, multiply your latest rates bill by three and start saving accordingly.
On the other hand, compliance certificates can be more challenging to budget for. There is usually a call-out fee for the inspection, and additional costs may arise depending on the issues that need addressing before the certificates can be issued.
Sellers of older properties should be prepared to set aside more funds for these repairs compared to those with newer homes. Compliance regulations change over time, often necessitating more updates for older homes to meet current standards, Goslett advises.
Another cost that many sellers overlook is the expense associated with moving. These costs can vary widely depending on whether you hire a professional moving company or handle the move yourself, as well as the amount of furniture, the distance between properties, and the complexity of the move (e.g., a first-floor apartment versus a tenth-floor flat with no elevator).
“There are numerous considerations when selling your home. Building an open and honest relationship with your real estate professional is essential. As industry experts, they can offer valuable advice to help you prepare for all potential hurdles. If you're planning to sell soon, schedule a free consultation with your nearest RE/MAX office to ensure you have enough cash reserves for all related expenses,” Goslett recommends.
Moving Costs: Hidden Expenses to Watch Out For
Moving from one home to another can incur significant costs, many of which are not apparent until the last minute.
For first-time homebuyers who have just paid for estate agent fees, transfer, and bond registration costs, or renters who have paid the deposit and first month's rent, moving expenses can still be a substantial burden.
It’s important to consider all potential costs when moving. Here are some key expenses to account for and save towards:
Deposit: Both homebuyers and renters need to pay a deposit. For homebuyers, this is an initial cost in the home-buying process. For renters, the deposit secures their place in the new home and typically ranges from one to two months' rent.
Removals: Deciding how to move your belongings is crucial. Whether you handle the move yourself or hire professionals, there will be associated costs. DIY moves involve expenses for packing materials, fuel for multiple trips, and potentially renting a vehicle. Professional movers’ costs vary based on services required, the volume of furniture, and the moving distance. Prices can range from R1,000 to R50,000, so it's wise to get several quotes to fit your budget. Consider insuring your goods against damage during the move.
Storage: If you cannot move into your new home immediately or need temporary accommodation, storing some belongings may be necessary. Storage rates depend on the container size or the number of items. Shop around for competitive quotes and ensure your belongings are insured.
Minor but Significant Hidden Costs: Several costs often go unnoticed until the last day of the move. These include meals for moving day, new blinds or curtains to fit your new home, and any DIY work like repainting and repairs. Additional tasks such as reconnecting DStv, telephone lines, fumigating, and carpet cleaning can also add to the overall cost.
By considering these factors and obtaining quotes, you can estimate your total moving costs and better prepare for the transition to your new home.
Choosing the Right Real Estate Agent
The role of a real estate agent extends beyond selling or renting property. They are attuned to current property values, market conditions, and can provide realistic expectations for your property's sale price.
Samuel Seeff, chairman of Seeff Property Group, emphasizes the importance of selecting a competent agent to ensure a smooth and efficient sale process.
Tips for Choosing the Right Agent:
Meet in Person: This allows you to ask questions and assess their experience and local knowledge. Local expertise is crucial for any seller.
Check Their Track Record: Ask for recent sales data, including time on the market and achieved prices. A strong sales record is an indicator of potential success.
Brand and Network: An established brand with a strong online presence can maximize your property’s exposure. Look for agents using best practices in marketing and sales.
Support Throughout the Process: Selling a property involves many legalities. A good agent will guide you through the process, ensuring all necessary documents and maintenance are completed efficiently.
Choosing the right agent is critical, especially in the current market, to avoid wasting time and ensure a successful sale. Always follow their advice and maintain open communication throughout the process.
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