Estate Agent Commission Comparison Calculator
Compare up to 3 agent commission rates side by side — sole, dual, or open mandate — and see your net proceeds after VAT
| Agent | Rate | Commission (ex VAT) | VAT (15%) | Total Commission | Net to Seller |
|---|---|---|---|---|---|
| Agent A (Sole) Sole Mandate | 5.50% | R 137 500 | R 20 625 | R 158 125 | R 2 341 875 |
| Agent B (Open) Open Mandate | 7.50% | R 187 500 | R 28 125 | R 215 625 | R 2 284 375 |
| Agent C (Dual) Dual Mandate | 6.00% | R 150 000 | R 22 500 | R 172 500 | R 2 327 500 |
Understanding Estate Agent Commission in South Africa How to use • Commission rules • Example
How to Use This Calculator
Enter the selling price of your property. Then fill in up to three agent options with their proposed commission rate and mandate type. The calculator shows total commission (including 15% VAT), your net proceeds, and how much you save by choosing the cheapest option. Use the Mandate Analysis tab to compare sole vs open vs dual mandate structures.
Estate Agent Commission Rules
Estate agents in South Africa are regulated by the Estate Agency Affairs Board (EAAB) under the Estate Agency Affairs Act. All registered agents must hold a valid Fidelity Fund Certificate (FFC). There is no legally fixed commission rate in South Africa — rates are fully negotiable between seller and agent. However, industry norms are:
- Sole mandate: Typically 5–6%, sometimes negotiable to 4% on high-value properties
- Open mandate: Standard 7.5% (agents set this as their floor for non-exclusive mandates)
- Dual mandate: Usually 6–7%, shared between two agencies
All commission is subject to 15% VAT — so a 6% commission on R2,500,000 = R150,000 ex VAT + R22,500 VAT = R172,500 total.
Worked Example
Zanele is selling her Sandton townhouse for R2,500,000. She receives three proposals:
- Agent A (sole mandate): 5.5% = R137,500 + R20,625 VAT = R158,125
- Agent B (open mandate): 7.5% = R187,500 + R28,125 VAT = R215,625
- Agent C (dual mandate): 6.0% = R150,000 + R22,500 VAT = R172,500
By choosing Agent A on a sole mandate, Zanele saves R57,500 compared to Agent B's open mandate — enough to cover her bond registration costs twice over. However, she must be confident Agent A will sell within the mandate period (typically 90 days).
Frequently Asked Questions
What is the standard estate agent commission in South Africa?
There is no legally fixed rate. The industry norm for an open mandate is 7.5% + VAT. For a sole mandate, rates are negotiable — typically 5–6%, sometimes lower for luxury properties. On a R2,000,000 property, the difference between a 5% and 7.5% sole mandate is R57,500 including VAT.
What is the difference between a sole mandate and open mandate?
A sole mandate gives one agency the exclusive right to sell your property for a set period (usually 90 days). Because the agent is guaranteed the commission if a sale occurs, they typically charge less (5–6%) and invest more in marketing. An open mandate means multiple agents can compete — but the standard rate rises to 7.5% and agents are less motivated since another agent could sell first.
Is estate agent commission negotiable in South Africa?
Yes, commission is fully negotiable. Agents are more willing to negotiate on: higher-value properties (R2m+), well-maintained easy-to-sell homes, sellers who agree to a sole mandate, and clients with repeat business (developers, landlords). Never accept the first rate offered — always negotiate.
Does VAT apply to estate agent commission in South Africa?
Yes. All estate agent commission is subject to 15% VAT (provided the agency is VAT-registered — virtually all legitimate agencies are). When an agent quotes you "6% commission," the actual cost to you is 6% × 1.15 = 6.9% of the selling price. Always confirm whether a quoted rate is inclusive or exclusive of VAT.
What is an EAAB Fidelity Fund Certificate and why does it matter?
The Estate Agency Affairs Board (EAAB) is the regulator for estate agents in South Africa. All practising agents must hold a valid Fidelity Fund Certificate (FFC) — issued annually upon meeting professional development requirements. Always verify your agent's FFC before signing a mandate. An agent without a valid FFC cannot legally earn commission and is not covered by the Fidelity Fund in case of misconduct. You can verify online at eaab.org.za.