Selling a property can be an exciting and profitable venture, but it's important to understand how much money you will actually receive as the seller. You will receive the purchase price less amounts such as stipulated below:
There are several factors that can impact the final amount you receive, so let's break it down.
1. Outstanding Mortgage Balance
The first thing to consider is the outstanding balance on your existing mortgage bond. This is the amount of money you still owe on your home loan. When you sell your property, this amount will be deducted from the purchase price. It's important to note that the interest on your bond will continue to accrue until the registration date, so it's a good idea to notify your bank of the sale to limit any penalty interest they may charge.
2. Cancellation Costs
When you sell your property, you will need to cancel your existing mortgage bond. This process involves certain costs, such as administration fees and legal fees. These costs will be deducted from the purchase price and can vary depending on your bank and the terms of your mortgage bond.
3. Municipal Clearance and Levy Figures
Before the sale can be finalized, your property will need to be cleared by the municipality. This includes obtaining clearance certificates for things like rates and taxes, water and electricity. These figures will be deducted from the purchase price and typically include an amount in advance for the next three months. These are estimated figures and may vary depending on your municipality.
4. Agent's Commission
As the seller, you will be responsible for paying the agent's commission. This is typically a percentage of the purchase price and is negotiated between you and the agent. It's important to discuss and agree on the commission rate before signing a contract with the agent.
5. Electrical Certificate of Compliance
In order to sell your property, you will need to provide a valid electrical certificate of compliance. This is a document that verifies that the electrical installations on your property are safe and up to code. The cost of this certificate will also be deducted from the purchase price.
So, how much money will you actually receive as the seller?
The final amount will depend on the purchase price, the outstanding balance on your mortgage bond, and the costs involved in the sale. It's important to have a clear understanding of these costs and to work with a reputable real estate agent who can guide you through the process and help you maximize your profits.
Happy selling! If you want any assistance, feel free to contact us here: An Agent will contact you.
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