Selling could prove more expensive than you think

SELLING a house can have hidden costs, says Lolly Unterslak of Jawitz Atlantic seaboard.

“Sellers should be aware of all the costs involved, even the unlikely ones, before deciding to sell, so as not to be unpleasantly surprised,” says Unterslak.

“Speak to a reputable estate agent and ask about the costs specifically. That way you’ll be aware of any surprises before they come along. An estate agent should be able to put your mind at ease by highlighting the costs from the start, to ensure an easy and pleasant sales experience.” Estate agents charge commission on the sale of any property and the amount is usually expressed as a percentage of the purchase price. Note, however, that this percentage excludes VAT. This total must be aid by the seller. These are a legal requirement for a transfer to be registered. It is the seller’s responsibility to cover the costs of electrical, plumbing, gas and, in some cases, beetle and electric fence certificates of compliance.

“Nowadays there are companies that offer the full service, so sellers only need to deal with one supplier,” Unterslak says.

Of course, should anything be non-compliant, the repairs will have to be done, so the certificate can be obtained. This could also be an unexpected cost.

“Sellers should make sure they are in full compliance of the latest municipal by-laws in their area. In some cities these by-laws change quite frequently, so keeping maintenance money aside to cover this would be a wise move.”

If the sellers re unable to vacate the property on the agreed date after the transfer, they will have to pay occupational rent to the new owners.

Sellers should make provision for this expense in the event that their new property is not ready to occupy, or make alternative accommodation plans.

“Make sure your new home is ready a few days in advance of the transfer, so you won’t have to incur occupational rent,” Unterslak says.

And, finally, there are the costs of moving your household and the insurance needed to cover your belongings while they are in transit.

“Sellers should also keep in mind the cost of storage, should the need arise to temporarily store any belongings until you take occupation of your new home.”