5 unexpected costs when selling your property
Unforeseen costs when selling your property will always creep in and you’ll need to consider them carefully. While it may seem illogical, selling a property will cost you money. Once you know about the expenses involved, you can incorporate them into the price of your home.
However, there will be some costs that you’ll need to pay prior to the sale going through. Increase your chances of finding the right buyer by listing your home on GotProperty today.
1. Bond expenses
Depending on your financial institute, you could incur additional expenses when you cancel your bond. The good news is that most banks make it possible to avoid penalty fees if you provide enough notice of your plans to sell. This means that you can decrease your costs when selling your property by notifying the bank in advance of your intention to cancel your bond.
Typical notice periods that are required include 60 or 90 days. As soon as you decide to sell, notify your bank in writing and continue to send them written notifications at three-month intervals until you find a buyer. However, it’s important to be aware that when you send this notification through, your facility will be frozen, so you won’t be able to use it.
If you make the cancellation within two years of taking out the bond, you could also be liable for early settlement expenses.
2. Service fees
Unexpected costs when selling your property include service fees. If you use the service of an estate agent, you’ll need to pay them a commission. You can expect to pay 5% to 8% of your home’s selling price as well as VAT.
Moving companies are another service provider that is associated with selling a property. You’ll need to move your possessions to your new home or to storage, which will incur additional expenses.
3. Municipal expenses
Before the sale goes through, you’re required to get clearance certificates for your rates and taxes. You can get these documents from your local municipality. They’ll charge you a fee to ensure that these expenses are covered while the registration process is taking place.
You’ll typically be liable for an upfront payment of two to six month. If the registration process is finished earlier than expected, you might get a refund.
4. Compliance certificates
Before you sell your property, it’s necessary to obtain electrical and plumbing compliance certificates. If you have electric fencing or gas in your home, you may need to get additional compliance certificates. Don’t forget to factor in the expense of repairs if your property doesn’t meet the standards that are required to be issued with these documents.
5. Repair and maintenance expenses
If you want to get the most out of your investment, you may need to make a few upgrades to your property before you put it on the market. While this will require an initial outlay of capital, it’s likely to pay off in the long run.
Make sure your house is in good condition and that it’s clean before you set up a viewing for potential buyers. If you’re looking for inspiration, here are a few easy steps you can take to boost the value of your property without spending a fortune:
>A fresh coat of paint
Painting your house is a simple way to increase its value. Choose neutral colours to ensure that your home has a wider appeal.
>Hire professional cleaners
Clean your home thoroughly to ensure that it’s in top shape. Use professional services to clean the carpets and windows so that your house makes a good impression on potential buyers.
Leaking taps, cracked windows, and broken cupboard handles all detract from your home’s value. A few simple repairs and maintenance work can make a huge difference to a buyer’s decision.
A well-kept garden is a sought-after addition to any property. Pay a landscaping service to get your garden up to scratch before your property goes on show.
Now that you know more about the unexpected costs when selling your property, you can make sure that you incorporate them into the price of your home when you are ready to sell. List your home on GotProperty and connect to buyers across South Africa.