The True Cost Of Buying Or Selling A Home
Be informed and know what to expect when buying or selling your property.
PropertyFox – a new entrant in South Africa’s property market whose mission is to help South Africans sell their homes at ‘a fraction of the usual cost’ – says many South Africans are stunned by the fees involved in buying or selling a house. And these often don’t become clear until the transaction is well underway.
Ashley James, co-founder of PropertyFox says, “Investing in property is still one of the best ways to build wealth and the property market in South Africa is currently booming. So it is a great time to buy or sell property – but do so with your eyes wide open.
“If you aren’t aware of everything you’ll need to pay for it can be quite a surprise as the process unfolds. For instance, when buying a home you are likely to need to have about 10% of the purchase price in cash to cover fees such as lawyers, bond fees and moving costs. And you’ll also need about 10% in cash for the deposit. So that is 20% of the price of the home in cash.”
James says that, similarly, sellers don’t always take into account estate agent commission – which can range from 7% in traditional estate agents, to the more affordable 1.5% of low commission online agents like PropertyFox. “This decreases the ‘take home’ amount from the sale. Sellers may also have to cancel their existing bond, which incurs a fee and they have to pay for electricity certificates and beetle certificates as well as moving costs.”
PropertyFox’s infographics below, outline the costs associated with buying and selling a home. The company aims to help South Africans be fully prepared for all aspects of their property deals.