Before setting out to find a home, buyers should get their chosen financial institutions or bond originators to approve whatever bond they might need, says Anton du Plessis, chief executive of Vineyard Estates.
“If you don’t know the size of the bond to which you will be entitled, sort it out now. If getting a bond is a condition of your offer, it could prejudice your bid if the competing buyer’s offer is condition free,” he says.
Some out of touch buyers have unrealistic ideas of the bond amounts for which they qualify. To safeguard yourself, it is advisable always to make offers free of the qualifying for bond condition but subject to bank valuers agreeing to the estimated value of the property.
Buyers should also enquire diligently about recent other sales in the area.
“If your agent cannot produce this information it will pay to take a month’s subscription to any of the data providers such as CMA Info or SAPTG (SA Property Transfer Guide) which provide up to date information on this subject. It is imperative to find out for yourself just what has been paid for homes in your area,” says du Plessis.
“Scan the publicity brochure and sale documents carefully to ascertain what is not said and to make sure you get this ‘missing’ information in writing from the agent. It would be pertinent to ask how long the home has been on the market. If the agent says the house has only been on the market for a month, get that information in writing so that if it turns out the house has been on the market for three years, you have proof of any misrepresentation. Agents are not obliged to volunteer this sort of information, but they must be truthful in answering any direct questions you may ask.”
“If you make your offer to purchase conditional on selling your own home, arrange an immediate assessment of its price by a professional valuer – so the seller with whom you are dealing can see the price is realistic and there is a good chance your home will sell.”
After nominating an estate agent, immediately submit that agency’s sale agreement to your own attorney for scrutiny – even if the agency at that point shows no signs of finding a buyer. You may need to make a snap decision on an excellent deal while your attorney is away. Instead of risking the sale by insisting on waiting for your attorney to check the documents, you should be able to accept it if the contract has already been vetted. If your attorney is attending to transfer he should not mind checking the agent’s sale contract at no charge. After all any unforeseen problems arising from ambiguities or errors in the deed of sale are likely to complicate the conveyancing process.
“If you appoint a sole mandate agency,” says du Plessis, “ensure that your agreement allows you to cancel the agreement if you are not satisfied with the service. Alternatively, you can stick to shorter periods with the stated intention of renewing the mandate periodically if you are satisfied with the service.”
Do not allow your agencies to festoon your home with sale boards. This, says du Plessis, lowers the tone of the home and can give the impression of desperation in the seller. One or perhaps two boards are all that should be allowed.
Advertising should also be controlled. Initially, perhaps, for the first three weeks, allow the agencies you are dealing with to advertise in the same publication at the same time. Then, the agencies should advertise on alternate weekends so that the property is not overexposed. Make sure the agents change the picture and the wording from time to time. A different angle or interior instead of exterior photograph may arouse the interest of buyers who would otherwise not have been interested.
