If you're selling your home with an estate agent, commission is going to be one of your biggest costs. Here's what's standard, what's negotiable, and what you should know before you sign a mandate.
Is There a Fixed Commission Rate?
No. Estate agent commission in South Africa is not regulated by law and there is no fixed "standard" rate. The Competition Commission actively prohibits industry-wide rate fixing. Commission is freely negotiable between you and your agent.
That said, there are market norms - rates that most agents quote as their starting point.
What Do Most Agents Charge?
The most common commission rates quoted by South African estate agents are:
5% to 7.5% of the sale price, plus VAT at 15%.
In practice, many agents will negotiate. In a competitive listing situation (where more than one agent wants your mandate), you have more leverage. In a slow market where agents have fewer listings, they may be less willing to discount.
What This Looks Like in Rands
| Sale Price | 5% + VAT | 6% + VAT | 7.5% + VAT |
|---|---|---|---|
| R1,000,000 | R57,500 | R69,000 | R86,250 |
| R1,500,000 | R86,250 | R103,500 | R129,375 |
| R2,000,000 | R115,000 | R138,000 | R172,500 |
| R2,500,000 | R143,750 | R172,500 | R215,625 |
| R3,000,000 | R172,500 | R207,000 | R258,750 |
This is the single largest cost in most property sales - larger than transfer duty, compliance certificates, or conveyancing fees.
When Is Commission Payable?
Commission is typically payable when the property is successfully transferred and the purchase price is received. If the sale falls through before transfer (for example, because the buyer's bond is declined), no commission is due.
Some mandates specify that commission is due when a "ready, willing, and able" buyer is found - even if the seller subsequently pulls out. Read your mandate carefully.
Types of Mandate
Sole mandate: Only one agent has the right to market and sell your property for the duration of the mandate (typically 8 to 12 weeks). Agents will often offer a slightly lower rate in exchange for a sole mandate.
Open mandate: Multiple agents can market your property. The agent who brings the successful buyer earns the commission. Open mandates give you broader exposure but less accountability.
Negotiating Commission
Commission is negotiable. Here's how to approach it:
- Get quotes from multiple agents before committing
- Ask specifically: "What is your commission rate, and is that negotiable?"
- Be wary of agents who quote unusually high suggested prices - they may be buying the mandate with flattery rather than evidence
- Consider whether the agent's network and marketing plan justify the rate they're quoting
A lower commission with a motivated, well-connected agent often outperforms a higher commission with a mediocre one.