Costs sellers forget to budget for
Category Advice
There are a number of costs to factor in when selling a property - many of which are payable upfront before transfer can occur. To avoid being caught short, sellers are advised to have adequate savings in place before placing their home on the market.
Realty experts advise sellers that, while an agent's commission is payable after transfer occurs, other costs such as home inspection fees, compliance certificates, as well as municipal rates and levy clearances will all need to be paid before transfer can take place.
Some of these costs are easy enough to calculate and to budget accordingly. For example, the rates clearance certificate will be issued by the local council who will ask the homeowner for roughly three months payments upfront. To work out roughly how much this will cost, simply multiply your last rates bill by three and start saving towards that total.
The compliance certificates, on the other hand, will be trickier to budget for. Generally, there will be a call-out fee for the inspection to take place and additional cost will occur thereafter depending on how many issues there are to address before the certificates can be issued.
Sellers with older homes are advised to have more cash set aside for these repairs than sellers of newer builds. Compliance rules can change over time, which usually means that older homes will have more to address to become compliant than newer homes.
Another cost many sellers forget to account for is the associated moving costs. Costs for this can vary depending on whether you are hiring a professional moving company or moving on your own, as well as how much furniture you have to move, how great the distance is between the two properties, and how tricky the move will be (e.g. first floor apartment versus a flat on the tenth floor with no elevator).
There is a lot to consider when putting your home on the market. This is why it is always recommended building an open and honest relationship with your chosen real estate professional.
As experts in their industry, real estate agents are able to provide knowledgeable advice that can help you be better prepared for all the known stumbling blocks. If you're thinking of selling in the near future, arrange a free consultation at your preferred real estate agency, sooner rather than later so that you have the time to build up enough cash reserves for all expenses that will occur during the process.
MORE TIPS: The cost of moving house
The costs of moving from one home to another can be high and expenses often go unseen until the last minute.
Whether you are a first-time homebuyer who has just outlaid costs to cover Estate Agent fees and transfer and bond registration costs or if you are a renter who has paid the deposit and first month's rent upfront, you will still be faced with the costs involved in moving your belongings.
It's important to consider every cost you might encounter when moving. Here is a list of some of the services and items which are important to consider and to save for accordingly:
Deposit
Whether you are buying or renting, you will need to pay a deposit of sorts. For home Buyers, a deposit is the initial cost paid during the home buying process, and as a renter, the deposit secures your rightful place in your new home. This deposit is a prerequisite in the agreement between a tenant and landlord, but the value of the rental deposit may vary from one to two month's rent, depending on the landlord.
Removals
When moving home, one of the most important factors is often the simplest, and that is how you intend on getting from home A to home B. Whether packing up your belongings and transporting them solo, to hiring professionals to do all the hard work, there will be costs involved.
When doing a DIY move, consider the cost of the following: packing materials (such as boxes, bubble wrap and tape), petrol for numerous return trips, and perhaps the hiring of a suitable vehicle for transportation of furniture and boxed belongings.
The cost of hiring movers normally differs depending on what services you require, such as packing services, moving your belongings and unpacking, and is also based on the quantity of furniture you have and of course the travelling distance to your new address. Prices can range from as little as R1 000 to R50 000 - so it's important to get numerous quotes to find a price that suits your moving budget. You might also consider taking out insurance to cover damage to your goods during your move.
Storage
If, by any chance, you cannot move into your new home immediately, or if you are moving into a temporary home for a short period, it may be necessary to put some of your personal belongings and less essential furniture into storage. Most storage companies offer a competitive rate, which will depend on the size of the container or number of items requiring storage. It's important to shop around for the best storage quotes which also provide the added service of insuring your belongings.
Minor yet major hidden costs
There are a couple of costs that often go unnoticed until the last day of your move. These include: crockery and food costs for the day of your move, and purchasing or tailoring new blinds or curtains to fit your new window dimensions. You will also encounter costs for DIY work done to your house, such as repainting and repairing.
When you move into your new home, it's important to get into your new routine as quickly as possible, and that means taking on a lot of admin! From reconnecting your DStv and telephone lines to having your new house fumigated and carpets cleaned; these are all important tasks which will help you make it 'your' home, but which can add to the overall cost of moving.
With all these factors taken into consideration, and with your chosen quotes in place, you can now make an estimated moving cost calculation to determine how much you can expect to pay to make the exciting move to your new home.
Author: Property24