Fixed 1.5% Commission With Premium Personal Service
Selling costs can look simple until VAT, minimum charges and mandate wording are added to the discussion. Before you appoint a real estate agent, the commission figure should be clear enough to understand without guesswork, and the service behind that figure should be equally clear.
OnePointFive works on a fixed 1.5% commission plus VAT, subject to a minimum charge of R40 000 plus VAT where the minimum is greater than the percentage calculation. For a Cape Town homeowner comparing real estate agent commission, the useful comparison is not the headline percentage alone. It is the VAT-inclusive cost, the minimum condition, the mandate wording and the service attached to the fee.
How the Fixed 1.5% Commission Is Calculated
A fixed commission structure gives the seller a defined starting point. Instead of entering the selling process unsure of how the commission will be calculated, you can work from a stated percentage and then factor in VAT and the minimum charge where relevant.
Commission is one of several seller costs that should be understood before listing. It affects the amount remaining from the sale and the way different service proposals are compared. The calculation should therefore be read in full: apply 1.5% to the selling price, add VAT to the commission amount, and then confirm whether the stated minimum charge produces the higher payable amount.
Work With the VAT-Inclusive Cost, Not the Headline Rate
VAT changes the total amount payable, so commission should not be read as the percentage only. If commission is presented as 1.5% plus VAT, VAT is added to the commission amount. The VAT-inclusive total is the figure a seller should keep in mind when comparing seller costs.
The minimum charge is also important. Where R40 000 plus VAT is greater than the 1.5% plus VAT calculation, the minimum charge applies. For some sellers this will not change the calculation. For others, particularly where the percentage amount falls below the minimum, it determines the final commission payable.
Use the calculator above to test different possible selling prices and to see when the minimum charge becomes relevant. The result is an estimate for planning, not a substitute for reviewing the mandate or discussing the property itself.
Compare the Work Included, Not Only the Percentage
The commission decision is financial, but it should not be separated from the way the sale will be handled. A seller needs more than a percentage. The property still needs an informed appraisal, a considered pricing discussion, careful preparation before launch and clear communication once buyer interest begins.
OnePointFive's model combines a defined commission rate with personal real estate agent involvement. The service includes the appraisal and pricing discussion, preparation before launch, professional photography, videography where appropriate, listing and marketing support, buyer communication, offer-stage guidance and continued involvement as the transaction progresses. Technology supports visibility and access to information rather than replacing the relationship.
A useful way to compare low commission real estate agent options is to ask specific operational questions. Who assesses the home before pricing? Who advises on preparation? What listing material is produced? How are enquiries and viewings managed? What happens when an offer arrives? Concrete answers reveal more about the service than repeated assurances that it is “full service” or “premium”.
Five Questions to Ask Before Comparing Commission
A clear comparison starts with the details that affect the actual cost and the selling experience. Before signing with any real estate agent, it is worth asking:
- Is the commission quoted including VAT, or plus VAT?
- Does a minimum charge apply, and at what selling price does it start to affect the calculation?
- What does the mandate say about commission, and when does it become payable?
- Who remains responsible for appraisal, preparation, marketing, viewings, offers and post-acceptance communication?
- What happens to the commission if the sale does not proceed to transfer?
These questions keep the discussion practical. A fixed commission real estate agent should be able to explain the fee structure plainly and connect it to the real decisions involved in selling your property.
The Mandate Should Match What You Understand
Before signing a mandate, the commission wording should match the explanation you have been given. That includes the percentage, VAT, the minimum charge, when commission becomes payable and what happens if the sale progresses to an accepted offer.
The Property Practitioners Act forms part of the wider professional environment in which property practitioners operate. For sellers, the practical point is simple: important financial terms should be understood before the mandate is signed.
If you are still comparing service levels, it may also help to consider what a real estate agency in Cape Town should do for sellers. Commission is important, but the mandate should also reflect the service you expect before and during the sale.
Compare the Cost, Then Discuss the Property
A low commission real estate agent should make the cost of selling easier to understand, not harder to question. With OnePointFive, the fixed 1.5% commission plus VAT, the R40 000 plus VAT minimum condition and the work included in the selling service can all be discussed before you decide to move ahead.
If you are preparing to sell in Cape Town, start with a no-obligation property valuation to understand your property's current position and the likely selling process. When you are ready to move from comparison to action, you can list your property with OnePointFive and begin with the commission structure already clear.