Due to the fact that the current property market offers buyers a wide selection of homes to choose from, the selection process can sometimes be tough.

Adrian Goslett, says that while most buyers probably have a good idea of what they are looking for in a home, there are a few steps they should follow to help with their final selection:

1. Make a wish list

Goslett advises buyers to write down everything they need and want in a property. The first aspect buyers should consider when making their list includes the type of property they prefer.

Buyers need to decide if they are looking for a freestanding home, a cluster or a unit in a sectional-title complex or secure estate, he says.

Then they need to decide if they would like a home they can renovate or one they could just move right into without changing a thing, Goslett advises. “A property in need of attention should have a lower asking price than one that’s fully renovated and a place that’s two or three years old will be cheaper than one that’s brand new.”

He says that buyers should also determine the details in terms of the number of bedrooms they require, the entertainment and garden space they would need, etc.

2. Differentiate between wants and needs

Once a wish list has been drawn up, Goslett recommends that buyers separate out items that fall into the wants category, which are the nice to haves but not essentials, from those that fall into the needs category, which are specifications that the buyer cannot compromise on.

“Buyers need to determine whether or not they really need that swimming pool and a large stand, or if they could compromise by buying a smaller stand in an estate that has communal facilities, instead, for example.”

3. Work out affordability

Determining a price range, Goslett says is one of the most crucial steps in the selection process. Buyers need to figure out how much they would be able to afford on monthly costs, including bond repayments, maintenance, levies and rates, etc.

“Since this exercise will undoubtedly impact on the type and size of a property that a buyer can actually afford, many buyers may choose to revisit their wants and needs list after adding up the cost and change some items that impact most on the price.”

4. Pre-qualify for a bond

Buyers will just end up wasting everyone’s time by looking at homes that they cannot afford to purchase.

By getting a pre-qualification on a bond, buyers will be able to determine whether or not they qualify for the necessary finance and will get an idea of the estimated amount that the financial institution would be willing to lend, says Goslett.

“This, along with the step above, will determine the price range in which buyers can begin searching for properties.”

5. Location

The emphasis on the importance of location remains as strong as ever. When looking at areas in which to purchase property, Goslett says that buyers should consider what locations they need to reach regularly, how they plan to travel there and how long the journey will take.

Schools and other amenities will also play a large role in this step of the selection process for many buyers.

“Buyers should make a list of their favourite or ideal neighbourhoods and then make sure that their budget matches what the homes cost in these areas, which will help to narrow the list down,” he says.

6. Start the search

The internet is the ideal starting place to begin a house hunt. There are numerous specialised websites that have easily-searchable property listings.

But because property websites don’t always cover everything that’s for sale in every area, local newspapers are also a good research tool for buyers, says Goslett.

He advises buyers should also visit their local estate agents to ask what’s coming onto the market, or drive around their favourite areas to spot any for sale boards going up.

Most estate agents will also take note of a buyer’s specific requirements and will cross reference this with properties the company has on their books, he says.

7. Choose a good estate agent

It is essential for a buyer to find an expert to work with, according to Goslett. “Ask for referrals and interview various candidates in order to ensure you select an agent that is professional, experienced and ethical.”

He says it is also best to select an agent that has good knowledge of the areas in which you are thinking of buying a property.

8. Learn the real estate market

The more knowledge a buyer has about the property market in which they are thinking of buying, says Goslett, the more equipped they will be to make an informed decision.

He suggests that buyers ask their agent to send them a list of homes that have recently sold in the area within their price range as well as a comparative market analysis of the area to help determine where the best value lies.

9. Find out what is for sale

Aside from making a shortlist of the properties found on the internet, through the local newspaper, from driving around or from an agent, buyers need to match the list with all of their criteria including their accommodation requirements, price range and location.

The next step is to set up appointments to view the properties on the shortlist and begin comparing them.

10. Practice your patience

Goslett warns that for some buyers, depending on their requirements, it may take time to find the ideal home.

Buyers may look at everything for sale and not fall in love with anything, he says. “In cases like this, buyers should ask their estate agent to add them to their email list to receive notification of suitable listings as they come on the market. Patience here is key.”

Please contact us if you require any further information or would like to apply for finance:

Complete this short form online

011.327.4489 / 0861 1111 93

morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za

Without prejudice to my rights!

To whom this my concern

I am Morne Prinsloo, the owner of Mortgage Plus and in my view and years of expertise in the home loan industry, there is a  definite need for  Originators, to stand together and get the job done!   As dedicated and devoted bond originators in South Africa we would have to work together to make this Industry a successful, professional and a reliable service, to all our consumers in the property market.

For example, I had a client yesterday that I could not help with a new home loan because of the banks not willing to work together with the originator channels and between themselves. In the mean time, the consumer “client” is suffering.

The abovementioned client had made an offer to purchase which he  signed through an  estate agent, The client approached me for professional advice and ask me if I could assist him with his home loan application form. UNFORTUNATELY, I had to show him away because of the existing terms and conditions between the banks and originators. We need to work together and not  against one another.

I have noticed  this every single day for the past 6 years and yet no one is ever willing to stand up and do something about it.

Within the new Consumer Protection Act  it clearly states that the consumer has a choice where and with whom he wanted to do business with and the client should have the option of making sure that he obtained a loan from a Financial Services Provider of his choice

For instance, the property that the abovementioned client put an offer in  on is a PIP (property in possession) property from ABSA bank,  so Nedbank and First National Bank wouldn’t assist him according to their rules and so that left me with Standard bank and Absa only. Standard bank would look at the client,  but because he is an  Absa client, however  they will only assist us with a 90% bond “if we’re lucky”. Now it leaves me with one option only ABSA.

We could then do the loan through Absa,  but only at 70% LTV (loan to value) BUT! If the client went directly to the branch, they would offer them a 100% home loan and pay their transfer cost?

Generally:

ABSA: Bond Originators do not even submit their deals to Absa anymore because of their stringent terms and conditions: 70% loans through originators and 100% directly through a branch.  My question is,  would  you refer the consumer where you know you’re not going to get the deal through “70% Ltv” or would  you rather then go to the opposition for example First National Bank where there’s a much bigger chance to get the deal through at a higher percentage loan?

Standard Bank:  Advertise discounts on legal fees and bigger loans through the media to get direct business and grow their  market share, but what about the thousands of Bond Originators and Estate Agents out there in the market that was always  willing to give you the business in the recent past history?

Nedbank: Everybody took a “knock” during the recession, but it is impossible do business through your bond originating channel, but in the same breath they are financing a Lynnwood Bridge Office Park Development in Pretoria for R 1.2 Billion.

First National Bank: All compliments to FNB,  reason being that everything is above board and across the board with no “hidden Agenda”, so to speak!  What goes for the one goes for the other and there is no difference if the client went to a branch or submitted through a bond originator.

In conclusion

I would welcome it if we all could work together again in order to provide the best service and relevant package to the consumer!

The market is booming! and we need the assistance and back up from OUR  Financial Institutions,  for the consumer’s sake.

AT MORTGAGE PLUS WE ARE GEARED TO CONTINUE OUR EXCELLENT WORKING RELATIONSHIPS WITH OUR CLIENTS AND THE BANKS COULD ASSIST AND ENHANCE THIS VERY IMPORTANT INVESTMENT CHOICE ANY CLIENT WOULD MAKE IN HIS LIFETIME!!

There IS enough business for all! – Article submitted by Mortgage Plus CEO.

Please contact us if you require any further information or would like to apply for finance:

Complete this short form online

011.327.4489 / 0861 1111 93

morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za