1. What is Real Estate Commission?

Real estate commission is the fee paid to agents for facilitating property transactions. In South Africa, this is typically a percentage of the final sale price, paid by the seller upon successful transfer of the property.

2. How Commission is Calculated

The standard commission calculation formula is:

Where:

• Sale Price — The final agreed selling price of the property in ZAR
• Commission Rate — The percentage agreed between seller and agent (typically 5-7%)

3. Typical Commission Rates in South Africa

Standard Rates: Commission rates in South Africa typically range between 5-7% of the sale price, plus VAT. Rates may be negotiable, especially for higher-value properties.

Breakdown: The commission is usually split between the listing agent and buyer's agent, with each receiving a portion of the total commission.

4. Using This Calculator

Instructions: Enter the property sale price in ZAR and the agreed commission rate (percentage). The calculator will compute the total commission amount.

Note: This calculator provides an estimate only. Actual commission may include additional fees or be subject to VAT.

5. Frequently Asked Questions (FAQ)

Q1: Is commission negotiable in South Africa?
A: Yes, commission rates are not fixed by law and can be negotiated between the seller and real estate agent.

Q2: Who pays the commission in a property sale?
A: In South Africa, the seller typically pays the commission to the estate agency upon transfer of the property.

Q3: Is VAT included in commission rates?
A: Commission rates are typically quoted exclusive of VAT. VAT (currently 15%) is added to the commission amount.

Q4: Are there different rates for different property values?
A: Some agencies use a sliding scale where the percentage decreases as the property value increases.

Q5: What's included in the commission?
A: Commission typically covers marketing, viewings, negotiations, and paperwork, but confirm what services are included with your agent.