Making an offer the property seller simply cannot refuse
Have you found your dream home and ready to make an offer? Find out how.
There is nothing more disappointing than finding your dream home, and then getting outbid by another buyer. According to the Seeff Property Group timing and preparation are usually everything, so be sure to make a compelling offer to avoid losing out.
In a buyer’s market, especially in the high demand price sectors, you may well face competition from other buyers. It is therefore prudent to make a compelling offer and not waste your time.
Buy now, or wait?
Further rate cuts are now largely delayed due to renewed global pressures on inflation and the economy. Many areas are, however, highly favourable for buyers who should take advantage while they can. Waiting too long could see prices rise and more buyers enter the market. The best opportunity to secure a good price is now.
How much should you offer?
A competitive price and favourable terms improve the likelihood of the offer being accepted, says Gerhard van der Linde, MD of Seeff Pretoria East. If there is other interest in the house, trying for a lower price could see you lose out. Always put forward your best offer, as sellers don’t want time wasters or bargain hunters.
Know what you can buy for?
For Elaine Vandayar, licensee for Seeff Richards Bay, a home loan pre-qualification is vital so that you know what you can realistically afford. You must also ensure you have the cash on hand for a deposit and the transaction costs, and your paperwork is in order so that the deal can move forward quickly.
Should you sell before you buy?
Keeping contingencies to a minimum is a big advantage, says Tiaan Pretorius, manager for Seeff Centurion. While you don’t have to sell first, the seller is entitled to continue marketing the property, and you could lose out if you are unable to match any new offer. It is therefore best to sell first, especially if the proceeds are needed to finance the new purchase.
Be ready with a counteroffer
Before putting in your offer, you should consider whether you could come back with a higher counteroffer if needed. If there is a lot of interest in the property, it is therefore best to offer as close to, or the full asking price, if you have your heart set on the property. The highest offer will generally always win the day.
An offer to purchase is legally binding.
Once an offer to purchase is accepted by the seller, it becomes a legally binding contract, and you cannot just back out without serious legal and financial consequences. Guard against compulsive behaviour, and ensure you can afford the home, have the funds for a deposit if needed, and cover the transfer duty and costs.
Michelle Vermeulen, licensee for Seeff Queensburgh says prospective buyers should take guidance from the agent regarding what the seller would accept and should not overstretch themselves. A well-crafted offer and a competitive price show you are serious, and could set you on the road to success.
Issued by Gina Meintjes
