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EVERYTHING YOU NEED TO KNOW IF YOU'RE THINKING OF SELLING YOUR HOME
Category Market Advice
Regardless of market conditions, selling what is most likely your largest investment - and your family home - is a big decision and it's important to get it right.
And, with property transactions being lengthy and complex processes peppered with potential pitfalls, mistakes can be costly so it's essential that you know what's required from the outset, have all your ducks in a row and not leave anything until the last minute.
It's also important to remember when selling your home that buyers nowadays are increasingly well-informed (and currently spoilt for choice).
So, if you're selling your property with a clear understanding of the market, are aware of current trends and have realistic price expectations, you're very likely to capture buyer's attention.
Property Valuation
The first, and most critical, step when selling a home is an accurate property valuation as this not only determines the final sale price achieved but also the length of time a home spends on the market.
However, as much as we all like to believe our homes are that bit extra-special and we all want the best return on investment possible, it's important to understand that the highest property valuation is not necessarily the best valuation.
Remember that this is not only a 'bricks and mortar' valuation which is easier to pinpoint, but rather a market valuation which also takes other factors into consideration.
Valuations should therefore make provision for the prevailing market conditions as well as a measure of uniqueness in every property as well as current trends which all influence the final value that a particular purchaser may perceive.
If your home is overpriced, buyers will always opt for similar homes at a more realistic price and yours will end up staying on the market until you eventually reduce your selling price. And then buyers will start to wonder what's wrong with your property.
Appoint the right agent for you
Your choice of real estate agent to help sell your property matters more than you think and it's not only a matter of appointing the 'best' agent, it's also very important to find one who is the right fit for you.
With the right agent in your corner, not only are you likely to sell your home faster and at the best possible sale price, they will also guide you along the way and make the selling process much less stressful.
Some sellers understandably believe that appointing more than one agency will ensure a faster sale but this is not usually the case.
Sole mandates create a real working commitment between seller and agent to actively work together to achieve the best and fastest sale, with the least disruption and stress so the seller not only enjoys peace of mind but also has better control over how their property is being marketed.
Compliance
When you sell your property, the law requires that you ensure installations comply with regulations, and before transfer can take place, the conveyancing attorney must be in possession of the relevant certificates of compliance (COCs).
In previous years only Occupancy, Electrical and Beetle Certificates were required, but new laws now stipulate that sellers also need to obtain a Gas Certificate, Electric Fencing Certificate as well as Plumbing and Water Certificates.
If all is in order, you could have your certificates in as little as a week at a cost of around R500 per certificate. However, if problems are discovered then you will also have to bear the costs of the necessary work to be done before the certificate can be issued, which can delay transfer if left to the last minute.
Sectional title
Selling sectional title property is different to selling a house because it's part of a larger property with a community of owners and is managed by a governing body, usually a body corporate.
Therefore, in addition to the standard required documentation, you will also need a levy clearance certificate from the body corporate as well as documentation for the buyer's bank to assess the financial status and management history of the sectional title scheme before they approve a bond.
And, although it's not a legal requirement, prospective buyers should also be given a copy of the scheme's rules and regulations before signing the offer to purchase to avoid any potential issues down the line.
Building plans
Although providing the buyer with building plans when you sell your home is not a legal requirement, it's advisable that the seller confirms that the council-approved plans mirror the house layout at the time of sale.
Structural alterations to a property always require council approval and if any unauthorised changes were made, the seller could find himself in a legal and financial bind and even lose the sale.
Seller's costs
It's important to factor in all costs from the get-go before you even start to sell your home so as not to find yourself in a financial bind and stretching your budget to breaking point - especially as you will probably also have to carry the costs of moving home or even buying another property.
- Estate Agent's Commission - This is usually payable on registration of transfer from the proceeds of sale by the seller.
- Bond cancellation - conveyancer's fee - This is the attorney's fees for the cancellation of an existing bond over the property. And if the loan term hasn't expired, it's important that the seller provides the bank with 90 days written notice prior to cancellation so as not to incur penalties.
- Compliance certificates - Occupancy, electrical, beetle, gas, plumbing and electric fencing compliance certificates are required and, although these each cost R300 and R500, if problems are discovered and need to be fixed, you'll also have to fork out for the necessary work to be done before the certificate can be issued.
- Body corporate and homeowners levy (if applicable) - The body corporate or homeowners association might require payment from the seller of a portion of the body corporate levy figures until date of transfer.
- Municipal provision for rates and taxes - This lump sum payment covers all rates and taxes that are payable in advance by the seller and, although it varies between municipalities in accordance with the valuation of the property, it's wise to set aside around R 5 000 per property.
At the end of the day, if homeowners take the time to familiarise themselves with the process and costs involved and enlist the services of a knowledgeable and experienced estate agent who will guide them through the entire transaction, selling their property will be far less stressful - and much more lucrative.
Author: Lew Geffen Sothebys International Realty