Cash-strapped homeowners who are considering putting their houses up for sale are often shocked to discover the financial implications of selling their property.

It takes months to process sales and transfer ownership at the Deeds Office, during which sellers do not have access to money from the sale. Consequently, instead of easing their financial burdens, the high costs may become overwhelming and add additional stress to property sales.

Money needs to be exchanged to kick off the property sale process. Sellers need to pay for rates clearance certificates, outstanding levies, bond and legal fees. If they’re purchasing another home, they’ll need a deposit and there will be moving costs.

Typically, it takes around three months for a property sale to be completed, adding more stress to an emotionally and financially taxing situation. Some people might turn to taking up loans to close the financial gap caused by the sale of the property. 

Some financial institutions offer specific loans that are aimed at easing the financial burden associated with property sales.

Elad Smadja, head of Property Bridging Finance at Taurus Capital, warns those intending to sell their home to be aware of other costs implications such as bond cancellation. 

"Money needs to be exchanged to kick off the property sale process. Sellers need to pay for rates clearance certificates, outstanding levies, bond and legal fees. If they’re purchasing another home, they’ll need a deposit and there will be moving costs," he said.

Costs to consider when selling your home

• Bond cancellation: Bond cancellation costs are managed by the bank’s appointed attorney and include bond cancellation fees, and pro-rata interest.
• Rates, taxes and levies: Sellers are responsible for paying rates, taxes and levies up until the property’s registration date.
• Compliance certificates: You’ll need to obtain certificates for electrical, plumbing and beetle inspections. These certificates typically range from R500 to R1,000 each, and potentially more if issues are uncovered during inspections as they will need to be fixed.
• Repairs and maintenance: Preparing your property for sale may require investment in repairs and maintenance to make it more appealing to potential buyers.
• Moving costs: Moving costs include expenses related to packing, hiring a moving company, storage, transportation and potentially temporary accommodation if your new property is not immediately available.
• Personal debt like school fees or credit card payments.