A real estate agent from Fitzanne Estates recently shared vital tips that you can use if you want to buy real estate in South Africa.
1. Make use of professional real-estate agents.
“People who want to buy real estate must make use of the best real-estate agents in town. Real-estate agents are professionals. They provide advice and guide you through the entire process of purchasing a property.
If you work with a reliable real-estate agent company, you are bound to get the best possible price in the shortest amount of time,” he said.
2. Conduct research on the current market.
Real-estate values fluctuate due to various reasons. Value fluctuations can be caused by broader national economic considerations. Its important to arm yourself with all the relevant market information before making any decision to buy hence conducting thorough research is essential.
3. Choose the best location available
According to the Fitzanne Estate agent, selecting the best location is essential. To ensure that your property investment continues to grow in value choosing the best location is key. “Explore the surrounding areas to check what sort of infrastructure exists. How bad or good is the security of the area?
Does the property have access to various modes of transport? Are schools around the area? Your reasons for the purchase can help you determine the best location.”
4. Understand the seller’s situation.
“Do not be afraid to ask sellers of the property questions. Get as much insight as you can to understand the motivation behind the selling of the property. Ask the seller and the estate agents any questions,” he noted. He explained that if a seller is in a hurry or under pressure to sell chances of them accepting a low offer will be high.
5. How long has the property been on the market?
The duration that a property has been on the market is essential. “If a house has been on the market for a longer period, it might be overpriced for current market conditions. Astute buyers normally get price cuts especially from buyers who are very desperate.”Knowing how long a property has been on the market can be to your advantage.
6. Research comparable homes.
The value of a home is governed by the current market. Most property markets are usually localised hence understanding prices of similar homes is essential. Comparative research can be easily done online. “Inventory of homes for sale in a specific location gives the house hunter the leverage to negotiate aggressively on the price.”
7. Think beyond price
The price is not the only negotiable. “Buyers must consider asking for concessions on items of repair or improvement or transaction costs” Its difficult to make any negotiations with newly built homes or developments. Buyers can gauge how fair an asking price is by purchasing a property valuation report or consulting an estate agent.
8. Choosing a mortgage
Make sure that you select the best mortgage that is available. Many banks in South Africa have recently eased their lending requirements. A deposit will enhance chances of home loans being approved at a quick and favourable rate.
This is where originators are invaluable, as they are able to approach multiple lenders, ensuring a higher probability of approval, as well as securing competitive terms. Their job is to shop your application around at all lenders in order for the banks to compete for your business, thereby securing the best deal possible.
9. Review structural aspects.
Before you purchase a house you must consider structural aspects.
Patent Defects: These are flaws that are clearly visible, they include wall cracks, sagging gutters, broken windows, missing tiles. A buyer must be aware of the general condition of the property.
Water pressure and geyser condition. Ensure that you turn on all the taps to check the water pressure. Also find out how old the geyser is. Also check that toilets flush properly.
Approved plans for all alterations. Consult the local municipality to find out if all buildings within the property that you want to invest are approved and fall within the building plan.
He noted, “If certain illegal alterations were carried out, you would be liable to rectify these alterations. This includes application costs for approval of the plans. The structure can be demolished if it does not conform to municipal regulations.”
10. Making an offer
Adequate research on the prices of recent sales in the area is vital before you make any offer. As a buyer you must be aware of the current property market conditions. Gauge how fair an asking price is. He concluded by stating,”Consult with the best estate agents or purchase a property valuation report.”