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.
Before making an offer to purchase do your reasearch. To avoid paying too much get an online property valuation that will give you sold prices of comparable property in the street or complex and guide you in making the right offer.
However, says Hano Jacobs, CEO of the Realty 1 International Property Group, prospective buyers can combat this anxiety by applying the following “stress-busters” to their house hunting process:
1. Consult a mortgage originator or your bank and get proper home loan 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.
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