How To Handle The Sale Of Your Residential Property As A Pro
A home is more than just a brick-and-mortar structure; for many, it is a significant financial asset and a time capsule of memories. Thus, selling such a valuable possession can be not only a monumental decision, but also an overwhelming process. Fortunately, by following a few key guidelines as explained below, you can navigate this journey more smoothly and with greater confidence.
- Transactional Costs:
It is important to be aware of the costs involved. One of the most common questions sellers ask is, “How much will I actually take home from the sale of my property?” While the dream may be to pocket the entire purchase price, the reality involves certain deductions.
The following costs should be factored into your decision-making:
Pre-sale Costs – Before Registration Into The Name Of The Buyer
- Costs relating to obtaining the necessary certificates of compliance as well as any repairs that need to be undertaken to meet compliance standards.
- Upfront payment of rates, calculated as a 3-month advance payment (any excess will be reimbursed pro rata after the transfer is registered).
- Any outstanding levies and consent fees if your property is part of a Homeowners Association.
Cost Payable On Date Of Registration – From The Proceeds Of The Sale:
- Real estate agent’s commission, which is typically a percentage of the purchase price.
- If your property is bonded, you will need to settle the remaining balance, along with the attorney’s cancellation fee.
- Mandate The Right Estate Agent (Property Practitioner)
An experienced, trustworthy estate agent can significantly reduce the anxiety of selling. They can handle many of the more stressful aspects of the process, including negotiating the purchase price, deliberating terms and conditions with prospective purchasers and liaising with the attorneys. Therefore, it is imperative that you choose an estate agent that is knowledgeable and trustworthy.
A very important aspect directly related to your choice of estate agent, is to know exactly how much control the estate agent will have over his or her proposed marketing plan, and how commission will be shared with other agents introducing their buyers to the property for sale.
If the estate agent works for an estate agency :
- which restricts him or her to allow other estate agents to introduce their buyers after the first or second week of the sole mandated period, then you are losing a lot of potential buyers who prefer / has been working for some time with another estate agent;
- who works on a commission split lower than at least 80-20 (80% for the estate agent and 20% for the estate agency), the estate agent will be less willing to share commission with other “outside estate agents” – again limiting the potential pool of buyers who will be introduced to your property.
- where the estate agent does not share commission on a 50-50 basis with “outside estate agents” (but on a deterring 80-20 or 70-30 basis), the “buyer agents” will probably not introduce their buyers to the property, as it is not financially sound or lucrative enough sales transaction for them anymore.
For a much more detailed explanation about some of the “hidden agendas” all property sellers should be aware of, please read this article: https://www.cch.co.za/news/beware-of-hidden-agendas-behind-exclusive-sole-mandates/
- Choose The Right Attorney
As the seller, you have the right to appoint the transferring attorney who will oversee the transfer of your property. While suggestions may come from the agent or purchaser, ultimately, the decision is yours, for it is your asset at stake. Selecting a dependable conveyancer (not all attorneys are conveyancers) ensures your interests are prioritised and protected throughout the process. Make sure that your attorney will handle the transfer him or herself and not refer it to another firm with qualified conveyancers – unless your property is not situated close to one of the Deeds Offices, in which case they need to employ the services of a corresponding legal firm situated near the Deeds Office..
- Finances – How to ensure it is not an opportunity cost hurdle and time waste
- FICA
If the buyer is purchasing the property with cash or paying a deposit, ensure that you confirm that the agent has properly vetted the availability and, according to FICA regulations the source of the funds.
- Home Loan Applications
Bear in mind that transactions can be delayed – or even fall through – due to insufficient funds or late payments. To avoid this, insist on proof of the buyer’s financial readiness before proceeding. A financial institution’s home loan pre-qualification certificate can be a game-changer. According to bond originators, sellers and estate agents have up to a 93% change of securing the sale if the buyer has been pre-qualified.
Sellers should insist that the estate agent request the buyer to employ a bond originator, as bond originators successfully obtain home loan finance for up to 83% of its applicants by providing multiple quotes from banks to compare, compared to buyers going only to their own bank. Single bank approval rates are about only 66%.
- Occupation Date
Another common issue that can be contentious, is early occupation. Remember, as the seller, you are not obligated to allow the purchaser to occupy the property before the transfer is complete, unless this was explicitly agreed upon in the Offer to Purchase. Do not feel pressured to grant early occupation unless you are entirely comfortable with the arrangement and after all costs have been paid.
- Familiarise Yourself With The Sales Agreement
Finally, once the Offer to Purchase has been signed by all parties, it becomes a legally binding document (commonly referred to as the Deed of Sale). While it is the duty of the agent to ensure the Offer to Purchase is fully completed, it is helpful for the seller to thoroughly read over the agreement themselves, to ensure completeness and that they understand the terms before signing. As the seller, ensure you receive a fully signed copy to verify that no unauthorised changes have been made.
Selling your home is not just a transaction – it is a journey that requires careful planning, informed decisions, and trusted partnerships. Properly chosen estate agents and conveyancers take pride in offering all of these.
With their expert local property market and legal services, they will support you throughout each stage of the sales and transfer process, ensuring your interests are protected and the sale moves forward without a hitch.