The clean and straight route to a best-outcome home purchase
Category Blog
Are home buyers at all wary of the critical first steps in the process - i.e. "If I like a house which is up for sale, what action do I take? What is my first move? Above all, what is the actual price of the property? Is it affordable? How do I put in an offer?
While estate agent guidance on these points always has value, it is important that, first and foremost, you rely on your own research as the buyer.
In the current, virtually flat-lining state of the market you will be spoilt for choice - not unlike a child let loose in a sweet shop.
Once you have seen a number of homes that appeal to you, put them at the top of your list in order of preference - with your most-favoured option at the highest point.
A gut-feel offer
It is seldom that buyer and seller prices converge at the outset. Therefore, the offer price that you are considering - by way of 'gut feel' - must sit comfortably in the pit of your stomach. Trust your gut!
Furthermore, ensure that you ask the right questions about transfer fees, and other costs involved in the transaction. Above all, remain firmly on course - with both feet on the ground.
In life, you don't get what you don't ask for. So ask the agent if you can put in an offer? So often the agent doesn't ask and nor does the buyer.
The less complicated your offer turns out to be (i.e. the fewer your additional clauses and conditions) the greater will be your opportunity of landing the house at lower-than-asking value.
"Cheeky" offers
It is not wise to put in "cheeky" offers as a conditioning step. It is a strategy that can often alienate the seller from the buyer right at the outset.
For example, a buyer recently considered submitting an offer of upper R2-million on an asking price of R3,8-million - clearly to try and 'soften up' the seller. The seller did not want to deal any further with the buyer.
This is not a good strategy - not least because agents who indulge in this behaviour lose credibility not only with the sellers who appoint them but also within the residential property market as a whole.
Don't be surprised if the asking price is seemingly reasonable. It may well be that the home has been precisely right-priced by the seller - without any of the usual wiggle room of, say 10 per cent, built in.
Buyers often stretch a bit beyond their budget limit. Don't feel alone in doing so. It is common that 50 per cent of home buyers commit at prices higher than originally intended.
That's human nature - so budget for it!
Author: Ronald Ennik
