Remember this when you buy

IN today’s property market, buyers who are looking to purchase a home, whether to upgrade, downsize or simply enter the market for the first time, need to have a well thought out strategy and game plan.

“It is challenging to achieve a goal without having a clear idea of what it is you want and where you would like see yourself in the future,” says Adrian Goslett, CEO of RE/MAX of Southern Africa.

He offers potential homebuyers a few tips to keep in mind when looking to purchase a property in the current competitive market environment:

Assess your needs and have realistic expectations

Goslett says before buyers even start looking at properties, they need to know what it is they need.

“This is the reality check of the buying process. It could take a bit of time and planning, but it is important to sit down either alone or with the other family members who will be living in the home to decide exactly what the essentials are and what can be comprised on.

Make a list for consideration of all the things that the new home should have, such as the number of bedrooms, size of the garden, location or proximity to your work or children’s school,” says Goslett.

He notes that once a buyer has a clear outline of what they are looking for, they should look at what has sold over the past six months that fits their requirements.

That will provide a guideline to what they can expect to pay for a home that meets their criteria. If the price range is above what the buyer can afford, it might mean waiting or reassessing the list of requirements.

Get pre-approval

“Getting pre-approved means that a bank, bond originator or financial institution has given the buyer an amount that they are willing to finance based on the information that the buyer has provided.”

The pre-approval certificate will cite the bond amount, along with the interest rate on the loan and the monthly repayment amount. Goslett says it is important to note that the final approval may be subject to a number of factors such as the bank’s property valuation and a signed offer to purchase.

Pre-approval buyers will require your latest payslip, proof of identification, three months’ bank statements and other re-levant documentation that will depend on the financial institution.