We understand that buying property can be an overwhelming and stressful process. Where do you start looking? What’s a good price to pay? What about all the paper work and contracts? What are the pitfalls I should look out for? What about this? What about that?
SIX IMPORTANT STEPS FOR BUYING A HOME
1. Get a qualified agent
There’s really no reason to attempt buying a home by yourself! “A professional real estate agent will not only save you the hassle of trawling through hundreds of homes online or in person, but they can also help you determine exactly what you need and want in a property – thus speeding up the process and ensuring that you’re happy with your new home,” says Tina Tchillingirova, a Rawson Property Group sales agent in North Riding, Johannesburg. “More importantly, an estate agent is there to handle all the negotiations with the seller and assist you through the complicated paper work when signing an offer.” Tchillingirova also advises that you check that your agent has the latest qualifications and a proven-track record of success.
2. Get pre-qualified for a bond
It might feel like unnecessary paper work, but it’s one of the first and most important steps to take if you’re serious about buying a home. “Our pre-screening report or pre-qualified certificate indicates your credit score and affordability. In other words, it outlines the value of the bond you are likely to qualify for – there’s nothing as disappointing as setting your heart on a property and then finding out that your bond was declined. Instead, empower yourself and your agent to know exactly what you can afford,” explains Tchillingirova. Luckily you don’t have to go far to get pre-qualified: the Rawson Property Group’s in-house bond originator, Rawson Finance, offers a pre-qualified certificate at no extra charge as part of our service to you.
3. Find the neighbourhood for you
Before you start looking for properties, find out exactly where you want to buy. Is it important that you live near schools and parks? Or do you prefer being close to shopping centres and gyms? Do you want to be close to the highway and main roads, or your office? “Chat to your agent about what amenities are important to you – this will help them narrow down areas that will suit your needs. Also, spend some time in recommended neighbourhoods to find out if this is where you can see yourself living,” says Tchillingirova.
4. Determine what kind of property you want
“Next, decide on the type of property you are after: sectional title, estate or freehold? Each of these has different pros and cons that suit different needs – a sectional title unit, for example, is perfect for those who want a lock up and go, while a freehold will give people the freedom to renovate and extend their homes.” Tchillingirova adds that your agent will be able to outline the details of the available properties in your preferred neighbourhood, so that you can make an informed decision.
5. Know the (extra) costs involved
Nothing can kill the excitement of buying a new home than discovering there are a number of extra bills coming your way! “Make sure you know all the costs involved in purchasing a home – there are almost always additional fees that buyers don’t factor in, such as transfer costs, a deposit and the bond process. I even recommend that my clients find out what it will cost to move!” When you know what the additional financial expenses will be, you’ll be able to make a wise, informed decision about the home you want to buy – and can afford.
6. Don’t take any extra loans
“Once your bond is granted, don’t make any new debt,’ warns Tchillingirova. “Banks always re-evaluate a buyer’s credit profile before the property is transferred onto their name. If your credit with a bank has increased since you applied for the bond, you may very well be disqualified.” Tchillingirova adds that while a bond can be re-instated, it’s an unnecessary and time consuming process, and may agitate the seller.
FOUR PITFALLS TO LOOK OUT FOR
1. Making an offer that’s too low
“While many sellers are open to negotiating the price of their property, chances are that they won’t take lightly to an offer that is much lower than their asking price,” says Tchillingirova. “In fact, in my experience, many sellers get offended and might not want to re-negotiate with the buyer.” Tchillingirova advises that you take the lead from your agent, who should be skilled in good negotiation tactics and be able to navigate the difficult conversations.
2. Check for damp, cracked walls and other possible repairs
When you’re viewing a home, scrutinise the ceilings, windows and walls for any damp stains or discolouration; also look out for any recent paint touch-ups that could hide damp. And while you’re scrutinising the walls, look out for any possible cracks – cracks bigger than 2mm should be inspected by a qualified building inspector as it could be indicative of a greater problem.
3. Assess the water temperature and pressure
Love a good, strong shower in the morning? Then make sure you turn on the taps to check the temperature and pressure of the home you’re interested in buying. If the water takes a long time to heat up or the water pressure is low, it could be an indication that the plumbing needs work or the geyser needs to be replaced. These can result in unnecessary bills and stress for a new homeowner.
4. Inspect the roof
Before you put an offer in, take a quick walk around the property to look at the roof from all angles. Keep an eye out for any missing or cracked tiles or buckling tin. The last thing you want is to buy a home and then find out that you don’t actually have a roof over your head!
Importantly, if you’re in doubt about the condition of the property you want to buy or have any questions about the process and/or paperwork involved, speak to your agent.
