Estate Agent Commission Calculator South Africa 2026
Calculate commission excluding and including VAT — with a full comparison table at all common rates
Calculator Features
How to Use This Calculator
Enter your selling price and drag the commission rate slider from 5% to 7.5%. The calculator instantly shows commission excluding and including VAT, your net proceeds, and a comparison table across all common rates. Use this to understand the cost impact before signing a mandate with an estate agent.
How Estate Agent Commission Works in South Africa
Commission is negotiable
There is no fixed rate set by law or regulation. The Estate Agency Affairs Board (EAAB) does not prescribe a rate. The most common rate is 6%, but sellers can and should negotiate. On a R2 000 000 property, the difference between 5% and 7% is R40 000 — before VAT.
VAT is added on top
All registered estate agents must charge VAT at 15% on their commission. This means a 6% commission becomes effectively 6.90% of the selling price. Always check whether quoted rates include or exclude VAT.
When is commission paid?
Commission is typically paid on registration at the Deeds Office — not on signing the offer to purchase. The conveyancing attorney deducts the agent's commission from the proceeds and pays the agent directly.
Sole mandate vs open mandate
A sole mandate gives one agent exclusive rights to sell your property, usually for 3 months. In exchange, agents often offer a lower commission. An open mandate allows multiple agents to market your property, but may result in higher commission rates and less dedicated service.
Worked Example
Andile is selling his Durban North home for R1 800 000. He signs a sole mandate with an agent who agrees to a 5.5% commission.
Commission excl. VAT: R1 800 000 × 5.5% = R99 000
VAT at 15%: R99 000 × 15% = R14 850
Commission incl. VAT: R113 850
Effective rate: 6.325%
Net to Andile (before bond & CGT): R1 686 150
If Andile had accepted the agent's initial request of 6.5%, he would have paid R135 135 incl. VAT — R21 285 more.
Frequently Asked Questions
What is the typical estate agent commission in South Africa?
The most common rate is 6% excluding VAT, which is 6.9% including VAT. Rates typically range from 5% to 7.5%. High-value properties (above R5M) often attract lower rates due to the larger absolute amount of commission. Online-only agencies may charge flat fees starting from R30 000, which can be cost-effective on high-value properties.
Do I have to pay commission if the sale falls through?
Under a properly worded mandate, commission is only payable when the agent is the effective cause of the sale and the sale actually transfers. If a buyer withdraws before transfer and there is no waiver in the mandate, commission is generally not payable. However, mandate wording varies — always read the fine print before signing.
Can I sell my property privately to avoid commission?
Yes. There is no legal requirement to use an estate agent. Private sales through platforms like Property24 Private Seller or direct advertising can save the full commission. However, you will need to manage marketing, viewings, offer negotiations, and coordinating with an attorney yourself. A conveyancing attorney is still required for the transfer.
Is estate agent commission tax deductible for the seller?
For Capital Gains Tax purposes, estate agent commission is a cost of selling and can be deducted from the proceeds when calculating your capital gain. This reduces your taxable capital gain. It is not deductible against ordinary income.
What is a 'dual mandate' and how does it affect commission?
A dual mandate (also called a joint mandate) involves two agents sharing commission from the same property. If Agent A finds the buyer, Agent A earns the full commission. If Agent B finds the buyer, Agent B earns it. Sellers who list with multiple agencies under open mandates effectively have unlimited agents but limited commitment from each. South African courts have ruled on complex commission disputes when multiple agents claim to have introduced the buyer — always clarify mandate terms upfront.