Say yes to the address. Getting your offer to purchase accepted

Securing your dream property depends on getting your offer to purchase accepted. Ideally, the seller would be looking for a good price, and the best possible deal while you may want to also secure a good deal for yourself.

The first thing to know, says Tiaan Pretorius, manager for Seeff Centurion, is that an offer to purchase is legally binding. Prospective buyers must therefore ensure they know what they are getting into, that they are credit-ready and can afford the purchase price, both in terms of the ability to secure a home loan and get a deposit and the transaction costs together.

Buyers must also ensure they are able to meet the conditions of the offer because he says, you cannot just back out of the agreement if you think you made a mistake as there are legal implications. A “cooling-off” period only applies to purchases below R250,000 which allows the buyer to withdraw within 5 business days without a penalty.

A well-crafted offer will demonstrate that you are serious, and appeal to the seller. Michelle Vermeulen, licensee for Seeff Berea and Durban North says the buyer should take guidance from the agent in terms of what the seller is ultimately looking for. Buyers should not overstretch themselves either.

Elaine Vandayar, licensee for Seeff Richards Bay says a home loan pre-qualification is a vital first step so that you know what you can afford, and have some level of surety that you can secure a home loan. You also must ensure you have the means to fund a deposit if required, as well as the costs to get the property transferred into your name.

Agents from the Seeff Property Group provides a few vital pointers pertaining to offers to purchase:

#1 – You can only put one offer to purchase in at a time. It is legally binding, so be sure that you can meet the conditions.

#2 – Offer a competitive price for the property if you are a serious buyer, or you may risk losing out to another buyer.

#3 – Research the area and current prices before you start your house hunting to avoid disappointment.

#4 – Use online property portals or agency websites to shortlist a few properties which fit with your price range before you start viewing.

#5 – Always get a home loan prequalification done so that you are empowered with the knowledge of how much you can buy for.

#6 – Pay a deposit as extra security. While the current bank deposit requirements average at around 10% of the purchase price, it will depend on the bank and property itself.

#7 – Present a serious offer with minimal conditions to entice the seller to accept, and to avoid disappointment and misunderstandings.

#8 – Keep contingencies to a minimum by avoiding unnecessary requirements as these may be off putting to the seller.

#9 – Know that you are realistically able to afford and be responsive and quick with a counter-offer if needed to avoid disappointment.

#10 – Ensure your paperwork is in order, including all the necessary bank and FICA requirements, so that the deal can move forward quite quickly.

Important, says Samuel Seeff, chairperson of the Seeff Property Group, buyers must always work with a reputable local agent as a safeguard. An agent with a track record can guide you through the offer process, provide valuable advice, present your offer effectively to the seller, and help you along the way to finally take possession of your dream home.

Issued by Gina Meintjes