What percentage does an estate agent take in South Africa?

There is no fixed rate. Most residential commission falls between 4% and 7.5% of the sale price, plus 15% VAT. In Cape Town's northern suburbs 5% plus VAT is the most common figure, which works out at 5.75% of the price once VAT is included.

Who pays the transfer costs when selling a house?

The buyer pays transfer duty and the transferring attorney's conveyancing fees. The seller pays agent commission, the compliance certificates, the bond cancellation attorney and rates clearance in advance.

Do I pay capital gains tax when I sell my house in South Africa?

Only if your gain exceeds the R2 000 000 primary residence exclusion. The gain is the increase in value less your costs, not the sale price, so most people selling an ordinary family home pay nothing.

What happens if I do not give my bank 90 days notice?

The bank charges interest for the remainder of the notice period when the bond is cancelled. On a R900 000 bond that is roughly R25 000. Phoning your bank as soon as you decide to sell avoids it entirely.

Can I negotiate estate agent commission?

Yes, and you should — before signing the mandate, because the rate is contractual once signed. Ask for a sliding scale rather than a flat cut, so the agent is rewarded for achieving a higher price rather than simply for selling.

What it costs to sell a house in South Africa

The short answer

Selling a house in South Africa typically costs between 6% and 8% of the sale price once agent commission and VAT, compliance certificates, bond cancellation and clearance figures are counted. On a R2 500 000 sale that is usually R160 000 to R190 000, of which commission is by far the largest part. Most sellers of an ordinary family home pay no capital gains tax.

Nobody hands a seller this list before they sign a mandate, which is why the final figure so often comes as a shock. Here is all of it.

Cost	Who pays	On a R2 500 000 sale
Agent commission at 5% plus VAT	Seller	R143 750
Electrical Certificate of Compliance	Seller	R750 – R1 800
Water installation certificate (City of Cape Town)	Seller	R600 – R1 600
Beetle certificate (contractual in the Western Cape)	Seller	R900 – R2 000
Gas / electric fence certificates, if installed	Seller	R800 – R2 000 each
Bond cancellation attorney	Seller	R4 000 – R6 000
Rates clearance, paid in advance	Seller	4 months of rates, largely refunded
Transfer duty and conveyancing	Buyer	Not your cost

Certificate figures are inspection fees only. Repairs found during inspection are extra, and are where the real money usually goes.

Commission is the big one, and it is negotiable

There is no legally fixed commission rate in South Africa. Most residential commission lands between 4% and 7.5%, with 5% plus VAT the most common figure in the northern suburbs. Agents quote excluding VAT and invoice including it, so a 5% rate is really 5.75% of your price.

You never pay it out of pocket. The transferring attorney deducts it from the proceeds on registration, and if the property does not sell you owe nothing.

The cost most sellers do not know about

Compliance certificates, and the repairs behind them

The certificates themselves are cheap. What is not cheap is the remedial work an inspector finds on a house that has been added to over thirty years — a DB board that grew organically, outside plugs without weatherproofing, a pool pump wired informally.

This is why the electrical inspection is worth booking before you list rather than after you accept an offer. R15 000 of repairs is a pricing decision in month one and an emergency in the fortnight before transfer.

Rates clearance is not really a cost

The City of Cape Town requires rates paid several months in advance before it issues a clearance certificate. It feels like a cost because the money leaves your account, but anything unused is refunded after transfer. Budget for the cash flow, not the loss.

Capital gains tax: probably not

The first R2 000 000 of gain on a primary residence is excluded, and the gain is the increase in value, not the sale price. Your selling costs come off the proceeds before the gain is even worked out, which means commission quietly reduces your tax. Most people selling an ordinary family home here owe nothing at all.

So what is the real number?

For a typical R2 500 000 sale with a bond, expect around R160 000 to R190 000 in total costs, of which roughly R144 000 is commission. Add capital gains tax only if your gain is unusually large, and add repairs if the electrical inspection finds them.

Rather than take that range on trust, put your own figures into the calculator. It shows the working.

Common questions

What percentage does an estate agent take in South Africa?: There is no fixed rate. Most residential commission falls between 4% and 7.5% of the sale price, plus 15% VAT. In Cape Town's northern suburbs 5% plus VAT is the most common figure, which works out at 5.75% of the price once VAT is included.
Who pays the transfer costs when selling a house?: The buyer pays transfer duty and the transferring attorney's conveyancing fees. The seller pays agent commission, the compliance certificates, the bond cancellation attorney and rates clearance in advance.
Do I pay capital gains tax when I sell my house in South Africa?: Only if your gain exceeds the R2 000 000 primary residence exclusion. The gain is the increase in value less your costs, not the sale price, so most people selling an ordinary family home pay nothing.
What happens if I do not give my bank 90 days notice?: The bank charges interest for the remainder of the notice period when the bond is cancelled. On a R900 000 bond that is roughly R25 000. Phoning your bank as soon as you decide to sell avoids it entirely.
Can I negotiate estate agent commission?: Yes, and you should — before signing the mandate, because the rate is contractual once signed. Ask for a sliding scale rather than a flat cut, so the agent is rewarded for achieving a higher price rather than simply for selling.