Category: Selling Property

What Are The Costs Of Selling Your Home in SA?

Many homeowners list their house, not taking into account what it will actually cost them. There are fees and expenses you should be aware of before you list with an agent. In this post, we will let you know what costs to expect when selling a home in Johannesburg!

There are many things to consider before you decide how to sell your home is South Africa! Keep in mind, listing your house will cost you money both up-front and once the property closes. You must factor this in when pricing your house and deciding who you want to work with.

The average amount it takes to sell a house in SA could cost upward of R150,000! That’s a lot of money! Keep in mind, that number varies widely based on where you live and the price of your home.

Will Selling Cost You Money in South Africa?

Agent Commissions – Commissions will typically run about 6-7% of the final sale price of the home. You will know the agent’s cut when you sign your listing agreement. While this money isn’t paid upfront, it is deducted from the amount you walk away with. Keep this in mind when pricing your home.

Agent Fees – Depending on the agency, there might be additional fees charged throughout the selling process. Some agents will pass on marketing and listing fees directly to their clients. Make sure you know what’s included and what you will have to pay for when all is said and done.

Closing Costs – Closing costs include many items that are paid at the closing table. These include bond cancellation fees, transfer taxes, appraisal costs, electrical and gas certification, and more. Expect to pay about 2% of the final sale price in closing costs.

Taxes – When you list your home for sale, you are responsible for the property taxes, utilities and house insurance up until the day of closing. These amounts can add up to thousands should it take a few months for the property to sell and close. Once you decide to sell, the sooner it happens, the better!

Preparing Your House for The Market – There is a lot of energy, time and money that go into getting a house ready to sell. There are repairs to make, walls to paint and carpets to clean. You will want to remove personal belongings and stage the home for selling. Whether you work with a professional or do it on your own, you are likely to spend money on new decorative pieces in the house. You should also clean up the yard but also consider some new landscaping to bring more curb appeal to the property.

Inspections – While it certainly isn’t required, more and more sellers are paying to have their home’s inspected before listing them. This will cost approximately R3,500 and up. By doing an inspection before you list, you will be able to address any issues with the home before they pop up in your buyer’s inspection. This will also give you negotiating power during the selling process.

Storage and Moving – While moving isn’t technically a selling cost, it is a large expense you will have to make once the house closes (if you haven’t done so already.) Whether you hire movers or do it yourself, moving can get expensive! How far are you going? Will you need a truck? You will also want to consider storage costs if you are living in the home while waiting for it to sell. Packing up unnecessary items ahead of time will make the house look nicer and give you an edge when it’s time to move.

September 20, 2020
Real Estate Disclosures – What You Have to Share Legally in SA
Real estate disclosures come with many questions for both a buyer and seller. Our rule of thumb? Be as open and honest as possible. Let us look at what you need to disclose by law.

Being an open and honest seller will not only help you avoid a lawsuit, but it will also make you a trustworthy, stand-up, all-around person. Hiding defects, looming repairs, and any other issues with the home will only come back to bite you in the end. Whether through a lawsuit or good ol’ karma… if you believe in that sort of thing.

Most real estate lawsuits occur because of non-disclosure.

So exactly how much are you required to disclose legally? Basically, anything that can affect the value of the property. Here are just a few of the things you should address:
- Issues with the land, such as drainage, bad soil, and potential for flooding. Bad soil can limit building and low-lying areas can be prone to flooding and water damage.
- Foundation level and known cracks must be disclosed. If the house settles more than it already has, it could experience structural damage.
- Plumbing problems, sewer issues, and leaky pipes all need to be brought to the forefront. Rising dampness is a very common and is a serious problem. Some of the most expensive home repairs stem from water damage.
- If you have a problem with cockroaches, rats, ants or termites, you will need to inform your potential buyer.
- Have a leaky roof? Tell your buyer before they find out during a rainstorm.
- Lead paint is a no-brainer. This disclosure is one of the most common you will see with home sales and rentals.
- Are there issues that will affect the title? Or rightful ownership? Have extending you home without a permit? This needs to be spelled out up front, not during the closing process.
- You should also have documentation for repairs and insurance claims you’ve made in the past. You should be able to describe what was done and the materials used.
- Make sure your electrical and gas supply is up to code. You will be required to submit an electrical and gas certificates from a certified professional.
Additionally, some provinces may require more in-depth disclosure of hazard zones which include flooding, earthquakes and other environmental factors affecting the land. Think about what you would want to know if you were buying a home for yourself.

Disclosures help a buyer learn as much as possible about a house before making their purchase.

You are selling a great home right? When you keep something to yourself, a minor, needed repair can snowball in much bigger problems. Many properties have something pop up during the inspection that the seller wasn’t prepared for. Imagine, your asking price slashed because of a defect you were unaware of. Your house is a multi-faceted machine. Many sellers choose to have their home inspected prior to a sale. This allows them to make the necessary repairs ahead of time, lessening potential buyer’s bargaining ability. An inspection will also show good-faith in selling. You are telling the world you want your home to be in the greatest possible condition before it is sold.

Your agent, attorney or broker will be able to supply you a checklist that covers the requirements for your state. Review the list in its entirety and add as many detailed notes as possible. Don’t forget to include the dates of upgrades and repairs. Fill out the form as honestly and as completely as possible. If you have questions, it is best to talk to a lawyer instead of your agent. Your agent might avoid such questions as they are out of their scope, and they want to lessen their liability.

Remember, YOU CAN GET SUED for being dishonest.

And if you are found liable, you will need to pay for repairs, legal expenses, punitive damages and in some cases, the sale can be rescinded. There are no statutes of limitations when selling your home. Depending on the issue, a buyer can report serious issues years later. Make sure you are working with a trusted professional to help guide you through real estate disclosures.
February 25, 2020
When Is It The Right Time to Sell Your House?
Maybe you’ve been on the fence about selling your house. It’s a difficult decision to make especially when deciding when is the right time. We have put together a few questions to ask yourself to assist you in making this tough decision.

What are you doing with the property?

Your house should be doing one of these things:
- A primary residence, somewhere that meets all of you and your family’s needs.
- It is a house you rent out and provides a consistent income with low overhead costs.
- A vacation or a weekend home.
If your home is vacant or costing you in repairs or tenant turnover, it might be time to consider selling it.

Is there another property that would better meet your financial needs?

What property are you potentially missing out on because your money is tied up in a different one? This is called “Opportunity Cost.” Take a look at what’s out there. Is there a better place you could be investing your money? Consider the long term costs of being tied up in one property. It might make sense to some but for people who move careers and travel a lot that might not be the most efficient option.

Do you feel cramped?

People buy their homes for what they need at the present moment. A young couple will generally start off with a single or double bedroom house and after some time a house full of kids might require a 5 bedroom home. As families grow and acquire more things, they often require more space. Imagine what having a little extra space could mean for you and your family!

Do you have “too much house?”

On the flip side, people often grow out of there space. Keeping up with a home that is too large like a 5 bedroom home with only 2 occupants can be stressful! Retirement might force you to reconsider your priorities.

Is this really the house you want to be in forever?

There is no rule that states you need to stay in the same home forever. Those days of a government pension or the security of company you spend 30 years working for are but a distant memory.The beauty of real estate is that you can move at any time you want. Think about your future, a few years down the road. Can you picture yourself in the same place, or do you see yourself somewhere different? Take our a piece of paper or type out the perfect day for you in 20 years, where are you when you wake in the morning? Whose there with you? How will spend the rest of your day? Have a vision of where you want to be.

Does the house need repairs?

Maybe the house is old and is in need of repairs you simply don’t want to make. Making repairs on a house you don’t really want can not only be expensive, but stressful and burdensome. You can choose to work with a reputable contractor to renovate your house or choose an easier option like moving into a home that has already been updated to your modern tastes.

Do you have equity in the home?

If you are able to sell your house, pay off your mortgage, and have some left over to put down on a new house, selling might be right for you! If you are able to get at least 20% down for your new home in a great area, even better!

What is owning your house costing you?

How much are you spending each and every month to own the house? The costs of homeownership go well beyond a mortgage payment. You will need to consider other ways you are spending money on the house such as taxes, insurance, and maintenance.
If you have been thinking about selling, it likely means that it is the right time! There isn’t one answer that is right for everyone! Consider your options and make the decision that works best for you!
February 4, 2020
How to Sell a House That Needs Work in Jozi

What if you need to sell your property but have to contend with the costs of having to fix up the house. You don’t have to feel stuck or fearful of all the impending expenses! Here are some great tips to help you sell your home, even if it needs some work!

Having to hold on to your house in order to fix up your house takes time and money. Many sellers forget to plan for the cost to acquire an electrical or gas certificate from a certified professional. This inevitably costs more money in the long run, especially if not done correctly, not to mention the stress and hassles that come from a run-down house.

There are many people out there who will buy your house for a great price, freeing you from the property and the burden of making repairs. The strategy of selling is a bit different, and with our tips, we can help you sell your house quickly and for a great price.

Fix What You Can

There are many things that can be repaired relatively inexpensively while still making a strong impact. Repairing holes in the walls, cleaning the carpets and adding new fixtures and a fresh coat of paint can go a long way without breaking the bank. We also recommend repairing the roof and cleaning up the yard. Curb appeal has a major impact on a potential buyers perception of the home. If their initial impression is of a neat and tidy yard, they will have a more open mind when viewing the rest of your home.

Get the Attention of Serious Cash Buyers & Investors

You can do this by networking in investment, real estate groups. Get the word out about your home and help people to see the potential value. Comparing your home to price other homes have been sold in your area can give you an indication of what buyers are looking for. Run the numbers yourself and let people see what it will cost to repair vs. the value of the home when it is complete. Being able to communicate the value of your house to potential buyers is very important when selling a fixer-upper.

Find a Unique Selling Point

Even if the house has areas that require major improvements, there is bound to be something about it that is appealing! Maybe it’s in a great location or features custom, built-in cabinetry. Focus on the positive and the potential of the property once it has been fixed.

Be Transparent

While you want to play up the good features you also need to be 100% honest about what is wrong with the house. By disclosing everything you know, you can address it head-on as opposed to after the inspection has been done. This can save a lot of time upfront. Concealing serious issues will potentially lead to a deal going wrong and inevitably lead to suspicion and drawn out negotiations. You don’t want to set yourself up for a lawsuit by knowingly concealing a potentially problem about the property.

Set a Date

Let it be known that you are widely advertising the property, and will be taking any and all offers into consideration. Set a specific date as to when an offer will be accepted. This will create a sense of urgency and will potentially put multiple investors against one another.

Help People Use Their Imagination

You can do some things to set the mood. Is it a nice day? Make sure the windows are open to let the breeze come through. Stage the home to the best of your ability and clean up as much as possible by removing clutter from rooms to help buyers visualise their dream home. You can even find free interior design or room planning software to show what the potential of the room with a few renovations. Help your potential buyers see what could be.

IF YOU NEED HELP SELLING YOUR PROPERTY FAST, CLICK HERE.

January 28, 2020
Renovations To Avoid When Selling Your House in SA

If you considering selling your home, you might be thinking about making a few repairs and house renovations before you list the property. Some changes can be lucrative, paying off in the long run. However, when selling your home not all renovations are created equal. In this blog, I will provide you with some tips on getting your home ready to sell with the most effective strategies.

These days it’s easy to get excited about shows on Tv that show you how to update your home to attract more buyers. Although updating and beautifying your home to attract buyers is a sure-fire way to get more people in the door, many sellers make the mistake of making too many upgrades that do not increase the property and that can leave your pocket feeling a little empty. In some cases, people even make upgrades that end up turning off buyers for your home! Before you take a sledgehammer to the kitchen wall or make multiple trips to Builders Warehouse, consider repairs and renovations that will pay for themselves by substantially increasing your home’s value.

Don’t Get So Personal

Avoid the trap of renovating your house to your desires, what might be to your taste may not be to everyone else’s. This can include overly designed kitchens, baths, and anything else that you consider one of a kind. Consider toning down bold coloured rooms and creating environments that are a bit more neutral. A can of paint is a lot less expensive than a total room redo. Also…

Don’t Decide for Your Buyers

If there are obvious repairs or upgrades needed to your property, don’t make them. Instead, provide a credit to the buyer, so they can have things done the way they want. It can be a great incentive when buyers have the ability to decide on the details of the home they want to buy. People will be attracted to the idea of choosing their own countertops and lighting fixtures. And, if you are tempted to sell your home in the best condition possible don’t make upgrades based on your own personal enjoyment or taste.

Make the Space Intentional

Keep the rooms as they were intended. What if you have an extra bedroom? Keep it a bedroom, not an office. Let the prospective buyers decide how they want to use the space. A room conversion will only knock down the perceived value. A 4-bedroom, 2-bathroom home will get more traction than a 3-bedroom, 2-bathroom + cottage at the same price. Also, a gym/office/breakfast nook can become confusing.

Don’t Add a Pool if you Don’t Have One

Adding a pool to a home you about to sell does not increase the value of your home by the same amount. It doesn’t work that way. Spending 150k to add a new pool, only to be able to add a couple of thousand rands to their asking price will end up costing you more than it adds value.

What are the Neighbors Doing?

Take a look at other homes in your neighborhood and keep your upgrades somewhere in the middle when planning to sell your house. If you go too far with your add-ons, you will be targeting high-end buyers. And maybe your neighborhood isn’t known for that, which could mean spending more time on the market to find a buyer. In addition, you will alienate buyers who love your neighborhood but don’t want to pay the high price. Point blank: Keep your property competitive within your neighborhood, but don’t take it too far!

IF YOU NEED HELP SELLING YOUR PROPERTY FAST, CLICK HERE.

January 21, 2020