What Does It Actually Cost to Sell Your Home?

Most sellers focus on the price. And that makes sense as the price is what you've been watching on the property portals, what your neighbour got last year, what you've built your plans around.

But the number that actually matters is what lands in your account after the sale. And that number is almost always lower than sellers expect, not because anyone is hiding something, but because the costs of selling a home are scattered across several different line items that most people have never had to think about before.

I've spoken to sellers who were genuinely surprised at transfer day. I'd rather that never happens to the people I work with. So here's the honest picture, upfront.

Agent Commission

This is the one most sellers know about. In South Africa, commission is agreed upon when you sign the mandate with your agent. It's typically calculated as a percentage of the final selling price and is subject to VAT.

What sellers sometimes forget is that commission is paid on the price achieved, not the asking price, so if the property sells for less than expected, the commission adjusts accordingly. Your agent should be completely transparent about this from the start.

Bond Cancellation and Why the Timing Matters

If you have a home loan registered against your property, it needs to be cancelled when you sell. This is not as simple as just paying off the balance. There's a process, and the timing of it can cost you money if you don't plan ahead.

Give your bank notice as soon as you decide to sell.

Most banks require 90 days' notice to cancel a bond. The moment you decide to sell, even before the property goes to market, contact your bank and give formal written notice of cancellation. Once you do, the bank will provide you with a specific date on which that notice period expires.

If your property sells within that window, you're in good shape. If it takes longer, you simply request an extension. That's a straightforward process.

Where sellers get caught out is when they don't give notice, the property sells quickly, and the cancellation has to happen without the full notice period having run. Banks can charge an early cancellation penalty in this situation, and it can be a meaningful amount.

Always request a settlement statement, not just your regular bank statement.

Here's something that trips up a lot of sellers: the balance shown on your quarterly bank statement is not the same as the amount you'll need to settle the bond on transfer. Your settlement statement includes:

• The exact outstanding capital balance on the settlement date

• Any accrued interest up to that date

• Bond cancellation fees charged by the bank

• Any early cancellation penalties, if applicable

This figure is what your conveyancing attorney will use. Always ask for a formal settlement statement, and make sure you understand every line on it before you sign anything.

Compliance Certificates

Before a property can be transferred in the Western Cape, the seller is required to provide a set of compliance certificates confirming that certain installations on the property meet legal and regulatory standards. These are the seller's responsibility and cost.

Here's what you'll need:

Electrical Certificate of Compliance (ECOC)

Required by national law for all property transfers. Must be issued by a registered electrician. Valid for two years, provided no electrical changes are made to the property after it's issued. This certificate is required on change of ownership and will be requested by the conveyancing attorney.

Electric Fence Certificate

If your property has an electric fence, a separate certificate is required confirming it complies with the Occupational Health and Safety Act. This certificate is required on change of ownership.

Water Installation Certificate (Plumbing COC)

Specific to properties within the City of Cape Town municipal jurisdiction, which includes the Northern Suburbs. Required by the City's Water By-Law, introduced in 2011. Must be issued by a registered plumber and submitted to the conveyancing attorney before transfer. This certificate is not a full plumbing inspection, it covers specific items including whether the water meter is functioning correctly, whether there are leaks causing water to run to waste, and whether rainwater is correctly separated from the sewerage system. A new certificate is required for every transfer.

Gas Certificate of Compliance

Required if the property has any gas installation, this includes gas hobs, gas geysers, gas fireplaces, and braai installations connected to a gas supply. Must be issued by a registered gas practitioner accredited by SAQCC Gas.

Solar / Photovoltaic (PV) System Certificate

With the solar boom of the past few years, many Northern Suburbs homes now have solar PV installations. If your property has one, a certificate of compliance is required confirming the installation meets the relevant standards. This is increasingly being required by banks and conveyancers as a standard part of the transfer process, and for good reason, a non-compliant solar installation is a safety risk and a liability.

Beetle Clearance Certificate

Firmly embedded as standard practice in the Western Cape and KwaZulu-Natal. The certificate confirms that the wooden structures in the home are free from certain wood-borer beetles that can compromise structural integrity. If beetles are found, the seller is responsible for remedying the infestation before the certificate can be issued.

A note on costs: Each certificate requires a professional inspection and, assuming everything is in order, typically costs in the range of R500 – R2,500 per certificate. If the inspection reveals that work is needed to bring an installation into compliance, that remediation cost falls to the seller before the certificate can be issued. This is why it’s worth checking your installations early, before you’re under time pressure from an accepted offer. Keep in mind that if you purchased your property many years ago, the regulations relating to electrical, plumbing, gas, or other compliance requirements may have changed over time. Even installations that were previously acceptable may now require upgrades or adjustments to meet current standards, and these costs are usually for the seller’s account before transfer can proceed.

Please confirm with your agent which certificates apply to your specific property. Not every certificate applies to every home, a property with no gas, no electric fence, and no solar will have a shorter list.

Rates Clearance

Before transfer can take place, the municipality must issue a Rates Clearance Certificate confirming that all municipal accounts for rates, water, electricity, refuse are up to date and paid in advance for a period ahead, typically two to three months beyond the transfer date. This advance payment is collected by the conveyancing attorney and any unused portion is refunded to the seller after transfer.

This is not a large cost in most cases, but it does affect your cash flow timing, the money is paid out before transfer and refunded after. Make sure your municipal account is clean and up to date well before your property goes on the market.

Levies

This section applies to you if your property is a sectional title unit or falls within a homeowners' association (HOA) for example, a complex, a gated estate, or a cluster development.

The levy clearance certificate

​Before your property can be transferred to the buyer, your conveyancing attorney is required by law to submit a certificate to the Deeds Office confirming that all money owed to the body corporate or homeowners' association has been paid in full. This is known as a levy clearance certificate, without it, transfer cannot be registered.

The body corporate, homeowners' association or its managing agent will provide your conveyancing attorney with levy clearance figures, which show the exact amount needed to bring your account into credit up to the date of transfer registration. This includes any outstanding levies, interest on arrears, and an advance payment to keep your account in credit through the month of transfer.

Special levies, the hidden risk

This is where sellers are frequently caught off guard. A special levy is an additional once-off contribution raised by the body corporate's trustees to cover unexpected or capital expenses like replacing a roof, repainting the complex, repairing boundary walls, upgrading security infrastructure. Special levies can be raised at any time by trustee resolution.

The legal position on who pays a special levy is determined by when it was raised, not when it becomes payable. If the special levy was raised while you were still the registered owner, even if it's only payable in instalments after transfer, it is generally considered the seller's liability.

What to do: Before listing, request a current levy statement from your managing agent. Check whether any special levies have been raised, what the balance is, and whether there are any upcoming trustee resolutions that could result in a new special levy.

Capital Gains Tax

If the property you're selling is your primary residence and the gain on the sale is below R3 million, you're likely exempt from Capital Gains Tax. However, if you're selling an investment property, a second home, or a property where the gain exceeds the primary residence exclusion, CGT may apply.

This is a conversation to have with your accountant or tax advisor before you sell, not after. The implications vary significantly depending on your personal circumstances, how long you've owned the property, and whether it qualifies as a primary residence.

Approved Building Plans

This is one of the most overlooked issues in property sales and one of the most disruptive when it surfaces late in the process.

Every structure on your property needs to have approved building plans on record with the municipality. This includes the main house, but also anything that was added or altered over the years: a garage conversion, a covered patio, a car port, an additional bathroom, a granny flat, a second storey. If it was built without approved plans, it is technically an illegal structure in the eyes of the municipality and that becomes the seller's problem.

Why does it matter when selling?

Banks will not finance a property with unapproved structures. If your buyer is applying for a home loan, which most buyers are, their bank will request a copy of the approved building plans as part of the bond approval process. If the plans on record don't match what's physically on the property, the bank can decline to finance it, or require the issue to be resolved before transfer proceeds. Either way, the deal is at risk and you limit your pool of buyers by not having this in place.

If you choose to sell the property without approved building plans, it is important to inform your agent so that potential buyers can be made aware of this from the outset.

What does it cost to resolve?

If you have unapproved structures, you have two options: demolish them, or apply for retrospective approval from the municipality. Retrospective plan approval, sometimes called "as-built" plans, which requires a draughtsman or architect to draw up plans reflecting the current structures, submission to the municipality, and a municipal approval process that can take several months and includes a penalty fee for the unauthorised work.

The cost varies depending on the size and complexity of the structure, but it is not trivial and the time it takes can delay or derail a sale if it's discovered after an offer has been accepted.

What to do now: Contact your municipality and request a copy of the approved building plans currently on record for your property. Then walk your property and honestly compare what's on the plans to what's actually standing. If there are discrepancies, it is far better to know about them and start addressing them before you list, not while you're in the middle of a sale.

Your buyer's bank will check it. Getting ahead of it removes one of the most common causes of last-minute complications in property transactions.

Summary of What You Should Do Before You List

Before you put your home on the market, here's a practical checklist:

1. Give your bank notice of bond cancellation and do this the moment you decide to sell, even if you're still a few weeks away from listing

2. Request a formal settlement statement from your bank and not your regular statement

3. Check your electrical certificate and find out when it was issued and whether any electrical work has been done since

4. Walk through your property and identify which certificates will be required (gas, solar, electric fence)

5. Make sure your municipal account is current with no arrears, no queries

6. Verify your approved building plans by requesting a copy from the municipality and compare them to what is physically on your property

7. Speak to your accountant if CGT might be relevant to your situation

Getting these things in order before you list puts you in a far stronger position. It means fewer delays once an offer comes in, no surprises at the conveyancing stage, and more control over your timeline.

Let's Have a Conversation

Selling a property is one of the biggest financial decisions most people make. Getting the preparation right makes the difference between a smooth, well-timed transaction and a stressful one.

If you're thinking about selling in the Northern Suburbs of Cape Town, whether that's this month or later this year, I'm happy to sit down with you, walk through the numbers honestly, and make sure you have a clear picture of what to expect from start to finish. No pressure, no obligation. Just a straightforward conversation so you can make an informed decision.

Feel free to give me a call or send me a Whatsapp on 0825555225 to arrange a chat or a meeting.

Looking forward to assisting you on your journey.

Wouter