There has never, says Tony Clarke, Managing Director of Rawson Properties, ever been a time when the inexperienced property buyer could get as much good advice from the media as he can at present. Property newspapers and the sectors online media, he said, are literally packed with good information and useful data - but, it seems, much of this is overlooked by those who are on the hunt for homes.
Asked what advice he regards as particularly important in todays market, Clarke said that the first and best advice is '˜beware of the difficulties that await the go-it-alone buyer.
'Time and again,' he said, 'I have seen people going this route get into difficulties'
Dealing directly with a private seller may appear to be a shrewd move, he said, but experience over many years has shown that it is almost always essential to call in the services of a professional valuer (or an agent whose valuations are known to be totally trustworthy), an attorney and, if possible, a construction expert.
'Almost weekly,' said Clarke, 'we find ourselves having to counsel those who have paid too high or agreed to difficult conditions in the sale. We are also regularly confronted by people who have bought a home with a serious latent defect of which the seller was quite possibly genuinely unaware. It pays every time, therefore, to spend a few extra rand on hiring experts so as to avoid mistakes of this kind'
The second important tip, said Clarke, is '˜find out in advance the size of the bond for which you qualify.
This, he said, can best be done by talking to a qualified bond originator or your bank, if you have a good relationship with it. Those who do not do this frequently waste much time in researching and looking at properties that are, in fact, beyond their means.
Tip three, said Clarke, is '˜do not take on burdens that may later prove too heavy.
'Quite frequently,' he said, 'the prospective buyer will find that his bank is willing to lend slightly more than he anticipated. He then goes looking for a more luxurious and expensive home than he originally budgeted for - but in the process he often fails to tot up other expenses such as food, clothing, schooling, transport, electricity, rates and levies, all of which combined are likely these days to increase his household expenses by 10% to 15% per annum.
'He probably also makes no allowance for an unforeseen drop in income, e.g. the non-payment of a bonus or additional cheque, which in the present economic conditions is also a very common occurrence'
Conservative budgeting, said Clarke, is therefore the only assured road to peace of mind.
His fourth tip, said Clarke, is '˜to try to avoid being too much swayed by emotion in the purchase process.
'Often a buyer will walk into a house, get an extremely good feeling about it and immediately want to own it. At Rawsons we encourage prospective buyers to take a second visit and we then try to get them to list their needs and their wants, ticking off each box as and when it is met. Lists of this kind can show that the house is, in fact, inadequate'
It is, added Clarke, always a good idea also to check the neighbourhood: unruly teenagers, drug related problems, traffic congestion or poor schooling might all be valid reasons for looking elsewhere.
It is also important, he said, to check the zoning of any vacant plots nearby.
'Sadly,' he said, 'beautiful views can quite legitimately be wiped out by major new developments making completely legal use of the ground to erect multi-storey blocks'
When signing for a property, advised Clarke, it definitely pays for the buyer to have a lawyer on hand and ensure that every clause is explained. It is also, he said, wise never to make an unconditional offer. There should always be some conditions that in the deal give the buyer room to 'move'.
In the agreement itself, he said, every possible detail should be specified in writing.
'South African property law dictates that a property transaction must be in writing, documenting the names the names and addresses of the parties concerned and the price. However, it is important to make sure all involved are agreed on such other matters as the date of occupation and/or the date of the owners departure (all specified in writing). Details regarding which fixtures and features are to be left in place are sometimes agreed only verbally and this can lead to serious problems'
Once you have bought, said Clarke, do not indulge in buyers remorse -an all too common experience.
'Typically,' he said, 'the buyer will go through a euphoric phase, followed by a downturn in which he finds reasons for disliking his new home - it may have blemishes and faults of which he was not aware at the time of purchase. This downturn must be recognised as a normal process - and worked through. Before long, the factors that made the home attractive to the buyer will reassert themselves in his mind and if he is at all mature he will find himself grateful for having acquired an asset which in the long run will always be an appreciating one'
For further information contact Tony Clarke on 021 658 7100 or email tony@rawsonproperties.com.
