Hints on Buying and Selling

What to expect from your agent?

Whether buying or selling or both, your agent needs to ensure that they have everything covered to allow you a stress free experience. When you are selling you can expect a free market related valuation of your property, advertising in local newspapers, an offer of a show house for your property and regular viewings of your house to prospective clients. When you are buying, you can expect good communication with regards to new properties on the market and proactive searching for new properties for yourself from your agent.

What your agent should expect from you?

It is important to assist the agent to allow for quicker and smoother process. Here are a few tips of how you can help your agent:

When selling property, make sure that you have easy access for clients to view your home and that your home and garden is tidy for a good curb appeal. Keep communication open to allow the agent to keep you updated on prospective clients.

When buying property, keep your agent informed about other properties in the local media you are interested in. Ask your agent to make an appointment to take you thought, which will allow the agent to correctly advise you on the advertised property. Also keep communication open between you and the agent so that you are informed about new available properties.

What is a Mandate?

If you are selling your house giving a mandate to your agent is a definite positive. A mandate gives an agent sole permission to sell your house for a negotiated period of time. And because of the multi-listing in Somerset West, your agent can open up the mandate to all other agents immediately so the property will be exposed to all interested buyers.

The benefits of signing a mandate are dealing with your agent only, having a dedicated and focused marketing plan, a higher price could potentially be negotiated, and more privacy and security.

What is multi-listing?

Somerset West operates in multi-listing environment. This means that you can see any house on the market with your agent. The benefits of this system allows you to build a relationship of trust with your agent as they will be able to show you all that is available in your price bracket within the area. This is also a benefit when selling your house as all prospective clients can be shown your house through your trusted agent.

What are the costs involved?

There are quite a few costs involved when purchasing a property so it is imperative to ensure your agent gives you an exact breakdown of what they are before you commit to the contract.

Here are the main costs involved:

Selling:

1. Estate Agents Commission paid by the seller is approximately 7.5% plus VAT. The commission can be negotiated.
2. Pro Rata share on rates and taxes (i.e. up to date of transfer).
3. Bettle & Electrical certificate and if anything needs repairs.
4. Bond cancellation costs (if applicable) – this amount varies from bank to bank.

Buying:

1. Transfer Duty is a tax levied by the government on transfer of ownership of fixed property. Up to R500 000 – Nil; R500 000 and above – from approximately 8% on a sliding scale (check exact figures with your agent).
2. Attorney's Fees for conveyancing. These costs are calculated on a sliding scale of the purchase price. (check exact costs with your agent).
3. Mortgage/Bond Costs are costs incurred for raising mortgage finance. Mortgage registration fees according to a prescribed tariff are payable to the registering attorneys. Insurance of the house, to be paid upfront will be added to this cost.
We hope these tips help you when buying or selling a property, but as mentioned please ensure you get all the information you need from your agent to ensure you have all the facts.