What does it cost to sell a house in South Africa? A Hermanus seller’s guide

By Simon Andrew | rare erf seller advisory

About the author: Simon Andrew is the founder of Rare Erf, a seller advisory service for property owners in Hermanus and the Overstrand. A property consultant for Fine & Country, the international real estate agency network specialising in upper-bracket properties, Simon brings over three decades of international marketing experience and a background in psychology and negotiation to his work. He helps sellers prepare, position and market their properties, make informed decisions and achieve the best possible outcome.

Note: This article provides general information. Costs and tax treatment depend on the property, ownership structure, agreements and circumstances. Confirm the figures and obligations for your sale with your conveyancer, bank and registered tax practitioner.

How much will you actually keep when you sell your home?

You receive an offer on your home. The number looks good. Perhaps you have already started mentally dividing it between your next property, your retirement fund and a little breathing room.

Before you do, there is another number worth knowing: how much will actually be yours once the sale is complete?

Selling a house comes with expenses, from estate agent commission to compliance work and, in some cases, tax. There are also payments that affect your cash flow without being new selling expenses, such as settling your bond or paying municipal charges in advance.

For owners of premium properties in Hermanus and the wider Overstrand, even a small percentage represents a substantial sum. On a R10-million sale, one percentage point is R100,000. Understanding the full picture early makes it easier to judge offers, plan your next move and protect the value you have built up.

What should you budget for?

There is no single percentage that gives every seller a reliable answer. Your commission agreement, property condition, outstanding accounts and tax position all matter. Start with the costs below and build a budget for your particular home.

Table 1 : Costs the homeowner should allow for

Item	What the seller should allow for
Estate agent commission	The agreed fee, plus VAT where applicable.
Bond cancellation	Cancellation attorney charges and any bank or short-notice charges.
Compliance	Required inspections, certificates and work needed to pass.
Municipal and levy clearance	Administrative charges, amounts owed and any advance payments.
Preparation and relocation	Chosen repairs, cleaning, staging, moving and storage.
Holding costs	Ongoing ownership expenses while marketing and transferring.
Tax	Capital gains tax or other tax obligations where applicable.

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In the illustrative R10-million sale below, the selected selling and moving expenses total R855,000, or 8.55% of the price, before tax and holding costs. The example includes a R100,000 preparation allowance. These are planning assumptions for a premium home: your quotations and agreed commission may produce a different result.

Some costs rise with the selling price, while others depend on the work involved. A R10 million home does not automatically cost twice as much to certify, move out of or cancel a bond on as a R5 million home. Budget each item on its own merits.

1. Estate agent commission: agree on the full amount

Commission is negotiable; there is no legally prescribed standard rate. As a broad reference, ooba quotes a commonly encountered range of 5%–7.5%. Your actual fee is the one you agree in writing.

Check whether the percentage includes VAT. Using an illustrative fee of 6% plus VAT at 15%, the total is 6.9% of the selling price. On R10 million, that means R600,000 commission plus R90,000 VAT: R690,000 altogether. The 6% rate is an assumption for this example, not a prescribed premium-property rate.

For comparison, a negotiated fee of 5% plus VAT would total R575,000 on the same sale; 7% plus VAT would total R805,000. Ask for the fee in rands as well as a percentage.

Before signing a mandate, ask what the fee covers. For example it may or may not include: professional photography, video, floor plans, targeted advertising, buyer screening, private viewings and negotiation. For a premium property, ask how the agent will reach suitable buyers and handle privacy. Agree on any separately charged marketing in advance, and understand when commission is earned and payable, as specified by the documentation.

Compare the proposed work and likely result alongside the fee. A lower commission can improve your return, but so can better preparation, stronger marketing and a well-handled negotiation. Ask an agent to explain their contribution in practical terms.

2. Your bond: distinguish the debt from the cancellation costs

If your property has a registered bond, the sale will normally involve settling the home loan and cancelling the bond. These are different entries in your budget.

The outstanding loan is money you already owe. It reduces the cash you receive, but it is not an estate agent fee or a new expense caused by selling. Cancellation attorney charges and applicable bank charges are additional expenses.

Ask your bank about its notice requirements as soon as selling becomes a serious possibility. Banks commonly require 90 days’ notice, and insufficient notice can result in an early termination charge. Confirm how long your notice remains valid and whether it must be renewed if the sale takes longer.

Obtain a written cancellation quotation. Costs can differ according to the registered bonds and work involved. A paid-up loan can still have a registered bond that needs formal cancellation. Continue making required repayments until your bank confirms settlement.

3. Compliance certificates: the inspection may be the smaller bill

Allow for both certification and any remedial work. An inspection can reveal faults that cost more to correct than the certificate itself.

Depending on the property and sale agreement, the compliance requirements may include electrical compliance, certification for a fixed gas installation and an electric fence certificate. A wood-borer or “beetle” certificate is often a contractual requirement in coastal transactions, rather than a blanket national requirement for every sale.

There is also a local distinction worth making: City of Cape Town water-installation certificate rules should not automatically be applied to Hermanus. Ask your conveyancer which Overstrand requirements and contractual obligations apply to your property.

If you have solar panels or an inverter, gather the electrical compliance documents and ask whether any municipal approvals or registration records need attention. For a home with extensive systems, also assemble service records and operating information for features such as water storage, irrigation, pool equipment and home automation. Distinguish these useful handover records from legally required certificates.

For a coastal home, it also makes sense to investigate visible corrosion, damp, roof leaks and deteriorating timber early. Obtain separate quotes for compliance work and optional improvements, so you can see what must be done and what might help the sale.

4. Municipal clearance: plan for cash needed before transfer

Overstrand Municipality requires settlement of the amounts it specifies before issuing rates clearance certificates. Its published guidance includes outstanding rates and service charges as well as estimated advance charges. Your conveyancer should obtain the current clearance figures for your property.

This payment needs careful labelling. The certificate or administration fee is a transaction expense. Unpaid accounts are existing debts. Advance collections can include money for a period extending beyond your ownership.

Ask how the final account will be reconciled, how any credit will be refunded or adjusted, and when. Avoid counting an advance payment as an additional permanent expense while also counting the same monthly charges in your holding-cost budget.

Most practically, find out when the money must be available. Having ample equity in a house does not necessarily mean having the cash needed before transfer.

5. Sectional-title and estate properties: check the scheme accounts

If you are selling an apartment, sectional-title townhouse or property in an estate, ask the managing agent or homeowners’ association for the clearance requirements and a statement of charges. (MJ Kotze Inc)

Request details of arrears, clearance administration fees, advances and any special levies. Have your conveyancer explain which amounts fall to you under the applicable rules and sale agreement. A special levy payable in instalments deserves particular attention: establish responsibility before signing.

This also gives you a better answer when a buyer asks about the property’s ongoing costs. Uncertainty over the scheme’s finances can become uncertainty over the offer.

6. Preparation, moving and the cost of waiting

A sale budget should include the work you choose to do before marketing: cleaning, gardening, repairs, painting or staging. Set a spending limit before the first contractor arrives. In the R10-million example, R100,000 is reserved for agreed preparation work; it is not a recommendation to spend that amount on every home.

Start with anything that could undermine confidence in the property: water damage, corroded fittings, tired exterior finishes or equipment that does not work. Then consider how to present its strengths, whether those are the view, architecture, privacy or connection between indoor and outdoor spaces.

Selective staging and good photography may help buyers appreciate a home, but avoid launching a major renovation without a clear case for recovering the expense. A R200,000 kitchen refresh needs more justification than “we thought buyers would like it”.

Include removal quotes, packing, storage and temporary accommodation. Artwork, antiques, pianos or a larger household may require specialist handling and transit cover. If you plan to remain after transfer, agree on occupational rent in the sale agreement. (MJ Kotze Inc)

Your ownership expenses also continue while you wait. Rates, levies, insurance, security, garden care and bond interest can erode the benefit of holding out for a higher price.

For illustration, R40,000 in monthly holding expenses over four extra months amounts to R160,000. Use your own actual figures: this is not an estimate of typical Hermanus running costs. For cash-flow planning, include the full bond instalment: when comparing the economic cost of waiting, distinguish the interest expense from the capital repayment, which reduces your debt.

At the example commission rate of 6% plus VAT, a R200,000 improvement in the eventual selling price leaves R186,200 after the additional commission. Four extra months costing R160,000 would absorb most of that benefit, even before considering tax. Waiting may still be worthwhile, but the extra price needs to justify the extra expense.

7. Capital gains tax: calculate the gain, not the selling price

A R10 million selling price does not mean R10 million is subject to capital gains tax. The starting point is generally the proceeds less the property’s qualifying base cost.

Base cost can include the original purchase price, qualifying acquisition and disposal expenses, and qualifying capital improvements. Keep invoices and supporting records. Ordinary maintenance, household running costs and home-loan repayments are not interchangeable with qualifying improvement costs. Properties acquired before 1 October 2001 have special valuation rules.

For the 2027 tax year, running from 1 March 2026 to 28 February 2027, SARS lists a R3 million primary-residence exclusion and a R50,000 annual capital-gains exclusion for individuals and special trusts. Older guides may still quote R2 million and R40,000.

The primary-residence exclusion applies to qualifying gains, not simply to the price of the house. It is shared according to ownership interests where there are co-owners; it is not automatically R3 million for each spouse.

This matters in Hermanus, where the property being sold might be a holiday home, a rental property or a home used partly for business. Such uses can restrict or remove primary-residence relief. Ownership through a company or ordinary trust also changes the position.

For an individual, 18% is the maximum effective CGT rate, not a flat tax on every sale or every rand of profit. The actual calculation depends on the applicable exclusions, other gains or losses and income-tax position.

Ask a tax practitioner to estimate the liability and payment timing before you commit the proceeds elsewhere. Do not assume the conveyancer’s payment into your account has already dealt with all your tax.

A further consideration for non-resident sellers

If you are non-resident for South African tax purposes and the sale exceeds R2 million, withholding rules may apply to the full purchase price. The standard withholding rate is 7.5% for an individual, 10% for a company and 15% for a trust.

This is an advance payment towards tax, rather than an automatic additional tax at that rate. A SARS directive may reduce or eliminate the withholding where justified. Raise this early: the amount temporarily withheld can affect the funds available for your next purchase.

On a R10-million sale by a non-resident individual, the standard 7.5% withholding would amount to R750,000 unless a directive changes it. Account for this when planning the timing of another purchase or a transfer of funds overseas.

Who pays transfer duty and the transfer attorney?

In a conventional residential sale, the buyer normally pays transfer duty, the transferring attorney’s fees and any new bond-registration costs. The seller usually nominates the conveyancer, subject to agreement. The seller’s bond-cancellation charges remain a separate item. (property24)

The signed contract determines the agreed allocation of costs. If you are selling as part of a VAT enterprise, obtain advice before settling the price and wording: VAT may apply to the property transaction itself. Simply being VAT-registered does not make every private home sale subject to VAT. (ooba)

Worked example: selling a Hermanus home for R10-million

These are illustrative, VAT-inclusive allowances where applicable, not supplier quotations or a prediction of your costs. Assume there is one bond to cancel, limited compliance repairs, and a defined preparation programme. Photography and the agreed marketing campaign are assumed to be covered by the commission; add any separately agreed charges to your own budget.

Table 2: Worked Example of costs based on sale price of R10-million

Expense	Illustrative amount
Agent commission: 6% plus 15% VAT	R690,000
Bond cancellation legal and administration costs	R7,500
Compliance inspections and limited remedial work	R20,000
Optional preparation, cleaning, repairs and staging	R100,000
Moving and packing allowance	R35,000
Clearance administration allowance	R2,500
Total selected selling and moving expenses	R855,000

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The total is 8.55% of the selling price. It excludes tax, short-notice interest, major repairs, special levies, arrears, storage, temporary accommodation and ongoing holding costs.

Table 3: Selling price less expenses and bank settement

From selling price to available funds	Amount
Selling price	R10,000,000
Less selected selling and moving expenses	R855,000
Balance before bond settlement, tax and other items	R9,145,000
Less assumed final bank settlement	R3,000,000
Planning balance before tax and other excluded items	R6,145,000

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This is a planning balance, not a prediction of the conveyancer’s payout: some budgeted costs may already have been paid separately. If the property is unbonded, omit both the R3 million settlement and the R7,500 cancellation allowance; the corresponding balance would be R9,152,500 before tax and other excluded items.

If, for example, the municipality also requests R40,000 in advance charges, record that separately in your cash-flow plan. This is a hypothetical clearance figure, not an Overstrand tariff. Any portion ultimately charged to your ownership period remains yours to pay; any surplus needs reconciliation.

How tax could change that R10-million example

Assume the seller is one South African resident individual, the home qualifies fully for primary-residence relief, and its verified tax base cost is R6 million, including qualifying acquisition, improvement and selling costs. Assume no other capital gains or losses, no brought-forward capital loss, and the full annual exclusion is available.

Table 4: Calculating CGT on your property

Illustrative tax calculation	Amount
Sale proceeds	R10,000,000
Less qualifying base cost	R6,000,000
Capital gain	R4,000,000
Less primary-residence exclusion	R3,000,000
Less annual exclusion	R50,000
Net capital gain	R950,000
40% included in taxable income	R380,000
Tax if the entire inclusion falls in the 45% bracket	R171,000

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The exclusions and inclusion rate follow SARS guidance for the example: the R171,000 result assumes the seller’s other income already places the entire taxable capital gain in the top bracket. With that tax provision, the bonded example’s R6,145,000 planning balance becomes R5,974,000 before holding costs and the other excluded items.

The R6 million base cost is used only to calculate the gain. It is not an additional R6 million cash deduction from the proceeds. Qualifying selling costs already included in it must not be deducted twice when calculating tax.

A holiday home or a property owned through a company or ordinary trust needs a different calculation. Its R10 million price tag alone cannot tell you what the tax bill will be.

Ask for two figures before you accept an offer

The first is your estimated net position: what remains after debt settlement, selling expenses and a sensible tax provision. The second is your upfront cash requirement: what you need to pay before the proceeds become available.

Ask your agent and conveyancer to help assemble these figures, with tax input where needed. Compare them at your hoped-for selling price and at a lower offer you might realistically consider. Include the cost of buying your next home in a separate budget.

That gives you a much firmer basis for negotiation. You can weigh the price against the buyer’s funding, conditions, timing and the expense of waiting.

How I can help

At Rare Erf, I help property owners in Hermanus and the Overstrand think through the decisions that shape their sale: what to prepare, where to spend, how to position the property and which questions to ask before committing. If you are considering selling, let’s start with what the move needs to achieve for you – and work through the numbers from there.

If you are considering selling in Hermanus or the surrounding Overstrand area, contact Simon Andrew at Rare Erf to discuss how best to plan for the upcoming sale.

Simon Andrew authors the Rare Erf Sellers Advisory - and works for international premium property specialists, Fine & Country in Hermanus