What you actually walk away with when you sell
Sellers plan around the asking price and get a shock at the attorney. Between the offer and your bank account sit commission plus VAT, the bond you still owe, the certificates you have to hand over, rates paid in advance, and possibly capital gains tax. Here is the whole list.
Work out what I would netAgent commission, plus VAT
South African commission is negotiable and commonly lands between 5% and 7.5%, with VAT on top of that. On a R2.5m sale at 5% that is R125,000 plus R18,750 of VAT, before anything else comes off.
Settling the bond, and the notice you forgot to give
Your outstanding balance is paid from the proceeds, plus a cancellation attorney fee. Banks also want 90 days notice: without it you pay interest for the notice period, which on a large balance is real money.
Certificates and clearances
An electrical compliance certificate is required everywhere. Plumbing certificates apply in Cape Town, beetle certificates are usual at the coast, and gas or electric fence installations need their own. The municipality also wants rates paid months in advance before it issues the clearance certificate.
Capital gains tax
If the home is your primary residence the first R2 million of gain is excluded, which covers most sellers. Above that, 40% of the gain is included in your taxable income at your marginal rate. It is an estimate worth knowing early, not tax advice.
See your own number
A RealTeasy Home Valuation prices your home from comparable evidence and then nets it down: commission, certificates, bond, clearance and an estimated tax bill, with sliders for your own agent rate and tax bracket.
