Buying Real Estate
in South Africa

South Africans prefer to involve an estate agent when they want to sell a house, although the agent does not do much more than putting an ad in the local newspaper or take the house "on show" on Sunday afternoon a couple of times. The biggest estate agencies in South Africa are: Pam Golding, Seeff, Era Steer, Remax, Homenet, Bill Rawson, Aida and Nationlink. These agencies are operating nationwide. In addition, you will find smaller agencies which specialize in certain areas, for example certain suburbs of Cape Town. Mostly, these small companies work very efficiently and offer an excellent service.

Agents charge 7,5% + VAT. Some charge less. The commission is payable by the seller, although - at the end - it is the buyer who pays for it as he brings the money.

The South African government profits immensely as well. Example: A property worth 2 Million Rand costs 134.000 Rand "Transfer Fees", payable by the buyer.

The property prices in South Africa - especially in the Cape area - have gone up substantially during the last few years und have basically doubled since 2001, mainly due to high demand and lower interest rates.