Even though the property market is weighted in favour of buyers at the moment, finding and purchasing a home is usually still a pretty nerve-wracking experience, because there are always fears about picking the wrong property or paying too much.

However, says Hano Jacobs, prospective buyers can combat this anxiety by applying the following “stress-busters” to their house hunting process:

1. Consult a mortgage originator and get proper home loan advice and a pre-approval. That way you won’t waste time viewing what you can’t afford and you’ll be able to show sellers that you are a serious buyer equipped to make a serious offer. Remember, though, to allow enough time in the sale agreement for the bank to perform its own evaluation of the property and grant final approval of your loan.

2. Consult a reputable agent with local knowledge and experience and find out all you can about the area in which you propose to buy. To establish the market value of homes in which you are interested, ask the agent for details of recent sales in the area – including the type of property that sold most or quickest, and the prices that were achieved.

3. Having found a home you like, find out all you can about the specific seller’s motivation and needs. If the property has been on the market for several months, the seller might be receptive to a lower offer, especially if your loan is pre-approved. Why is the home for sale – is the seller under pressure because he has been transferred or perhaps already bought another home? Have there been other offers? If so, why didn’t the seller accept? Is there any flexibility in the asking price?

4. Make your first offer for the home you want your best one, after consideration based on your research. This does not mean that you have to offer full asking price, or that you should not be prepared to negotiate. It does mean that you should not treat the purchase as a game and risk closing the door on negotiation because of an unreasonable or unfair initial offer that will alienate the seller.

5. Make it a condition of sale that you can view the property again. When you find the right home, the chances are that you’ll know it right away, but you should take the time to confirm your decision. You might want to check the property out on a weekday instead of on a weekend show day, for example, or at night instead of in the morning.

6. Be sure to discuss everything “moveable” that you expect the owner to leave with the property when he moves out – and then ensure that his commitment is written into the sale agreement. Such items may include pool cleaners, bore-hole pumps, custom-made blinds or curtains, certain light fittings, security systems and even remotes for gates and garage doors.

7. Be sure that all arrangements regarding occupation of the property during the transfer period are clearly stipulated in the sale agreement. Dates and the amount of occupational interest payable should be exact, not couched in vague phrases that are open to misinterpretation and manipulation.

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

What to Avoid when Buying a Home

When buying a home, there are many factors to take into consideration and many factors to avoid. It can have very costly consequences if the process not handled properly.

Many people are so hard up so sell their homes that they will skip vital parts of the process to make a quick sale. This can be to the benefit of the seller and the seller only. When sellers receive competing offers on their home and you really want the house, it might happen that you offer way too much for what the house is worth.

If the seller or the real estate agent wants you to skip the home inspection, insist on it or find another agent. It is not worth buying a house and spending twice what you saved in fixing the house. Home inspection is a vital part of home buying and should never be overlooked, even when others encourage you to skip it.

Verbal agreements should also be avoided at all costs. It is impossible to verify a verbal agreement and no matter how much you think you trust the seller or the real estate agent, getting everything in writing can save you a lot of money. Both parties must sign all agreements and all details should be recorded. It is a good idea to verify all the listing info at the start of the purchase. If this info is incorrect, take time to check for other inconsistencies.

Doing your homework before purchasing a home is very important. You should know exactly how the process works and what you are entitled to. We would all love to believe that all sellers are honest and fair, but, unfortunately, this is not the case. Make sure you are cautious and always be on the lookout for pitfalls. It happens too often that innocent buyers are fooled by sellers and end up spending a lot more money than they should have.

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