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Property Buying Tips: A thread
NB: I personally would advise against buying residential property as an investment. Whatever the case, if you want to buy property, here are a “use it, don’t use it” tips.
NB: I personally would advise against buying residential property as an investment. Whatever the case, if you want to buy property, here are a “use it, don’t use it” tips.
1. Understand and appreciate that your biggest enemy is your Excitement and Lack of Research which together cloud your judgment.
Sellers and Agents love this. It makes you easy fodder. An agent once told me he was gonna sell my property in the Dec-Jan period citing a targeted
Sellers and Agents love this. It makes you easy fodder. An agent once told me he was gonna sell my property in the Dec-Jan period citing a targeted
group of buyers from the rural areas moving to the city. He was right.
2. Understand and appreciate the enormity of the financial commitment you want to make.
The novelty of a new house and owning a home may peter out in lesser days than the debt. In all likelihood the..
2. Understand and appreciate the enormity of the financial commitment you want to make.
The novelty of a new house and owning a home may peter out in lesser days than the debt. In all likelihood the..
debt outlives the excitement.
3. Everything about house prices is negotiable. Negotiate with your heart and partner where relevant, on what defines the house of your realistic dreams, the location and timing of the purchase.
4. Negotiate with the agent on the price. Get a..
3. Everything about house prices is negotiable. Negotiate with your heart and partner where relevant, on what defines the house of your realistic dreams, the location and timing of the purchase.
4. Negotiate with the agent on the price. Get a..
bank pre-approval and tell the agent you have a pre-approval. Don’t mention the amount. Never discuss your budget. You buying a house not your budget.
5. Watch out for pressure-cookers. At the viewing, there might be others in attendance who will want to chat you up. They..
5. Watch out for pressure-cookers. At the viewing, there might be others in attendance who will want to chat you up. They..
will seek to influence how you like the property. They will soon mention that they like it a lot and that they want to buy it for cash. It’s all staged. The aim is to softly coerce you into signing the offer to purchase on the spot.
6. You must have scouted the area at least..
6. You must have scouted the area at least..
for a month or so. This helps you monitor the property movements in the neighborhood.
Property prices are influenced by recent sales in the area. If you know how low they’ve been, you will know what’s a fair price.
If the particular house you want to buy has been listed..
Property prices are influenced by recent sales in the area. If you know how low they’ve been, you will know what’s a fair price.
If the particular house you want to buy has been listed..
for some time, that’s an opportunity to negotiate price down. It’s not selling at the asking price. Agents normally put the house down from their listing if it doesn’t sell for some time. This will be to avoid the price decline.
7. Size matters! You must have calculated how...
7. Size matters! You must have calculated how...
much a square meter sells for in that neighborhood. Bring this fact and negotiate! I don’t want to sound sexist but I want to advise that you send a male friend to do the first viewing for you 
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🙏🏿" title="Folded hands (dark skin tone)" aria-label="Emoji: Folded hands (dark skin tone)">. Unlike beauty, you shouldn’t be measuring a house size by your eyes. Ask to...
confirm the dimensions on the house plan.
8. Identify the extras that you don’t necessarily need as an area to negotiate the price down. Agents will use this to negotiate the price up. Be a step ahead.
9. Identify paint colours and touch ups you may need to bring the house..
8. Identify the extras that you don’t necessarily need as an area to negotiate the price down. Agents will use this to negotiate the price up. Be a step ahead.
9. Identify paint colours and touch ups you may need to bring the house..
to your full liking. Negotiate down on these. You can either negotiate for them to fix these as part of the sale agreement or to inform your offer price.
10. Forget the furniture in display. You buying a house not the furniture. Good agents use this as a marketing strategy...
10. Forget the furniture in display. You buying a house not the furniture. Good agents use this as a marketing strategy...
Focus!
11. The listing price is not the selling price. Appreciate this. The selling price is the offer price accepted by the seller. Negotiate! Every Rand you chip off prevents your wealth erosion.
12. You don’t owe the agent a quick response after viewing. I hope you can..
11. The listing price is not the selling price. Appreciate this. The selling price is the offer price accepted by the seller. Negotiate! Every Rand you chip off prevents your wealth erosion.
12. You don’t owe the agent a quick response after viewing. I hope you can..
buy more time viewing more properties in the area. Let the agent know you checking out other properties.
If possible, avoid using the same agent for properties in the same neighborhood. I don’t see how it would add meaningful value negotiating with the same person.
13. Happy..
If possible, avoid using the same agent for properties in the same neighborhood. I don’t see how it would add meaningful value negotiating with the same person.
13. Happy..
to be corrected but I don’t think the signed offer-to-purchase binds you to a sale. I believe it binds the seller and buyer to the agreed price and conditions of sale. Don’t feel pressured to buy when your best judgment changes after signing offer to purchase. You can...
still turn back from the alter with the bride or groom and the marriage officer in wait https://abs.twimg.com/emoji/v2/... draggable="false" alt="😅" title="Smiling face with open mouth and cold sweat" aria-label="Emoji: Smiling face with open mouth and cold sweat">.
14. Remember to list all the things you want fixed as conditions of sale. If it’s not in writing, it may be very hard to enforce.
15. If you will take up occupation before the...
14. Remember to list all the things you want fixed as conditions of sale. If it’s not in writing, it may be very hard to enforce.
15. If you will take up occupation before the...
property still turn back from the alter with the bride or groom and the marriage officer in wait https://abs.twimg.com/emoji/v2/... draggable="false" alt="😅" title="Smiling face with open mouth and cold sweat" aria-label="Emoji: Smiling face with open mouth and cold sweat">.
14. Remember to list all the things you want fixed as conditions of sale. If it’s not in writing, it may be very hard to enforce.
15. If you will take up occupation before the..
14. Remember to list all the things you want fixed as conditions of sale. If it’s not in writing, it may be very hard to enforce.
15. If you will take up occupation before the..
property transfers, you may be told to pay rent for the period until transfer. Negotiate! Focus motase!
16. The transfer costs are not set by laws of nature! Approach the conveyancers and negotiate! Cry if you must! Client Agent confidentiality, no-one else will know you...
16. The transfer costs are not set by laws of nature! Approach the conveyancers and negotiate! Cry if you must! Client Agent confidentiality, no-one else will know you...
cried.
17. Don’t buy in a location based on your current place of work. Unless you really want to..https://abs.twimg.com/emoji/v2/... draggable="false" alt="😅" title="Smiling face with open mouth and cold sweat" aria-label="Emoji: Smiling face with open mouth and cold sweat">
18. The bank interest rate can and should be negotiated! This is a buyer’s market! The bank doesn’t have a system that dictates the final interest rate to charge you. Someone..
17. Don’t buy in a location based on your current place of work. Unless you really want to..
18. The bank interest rate can and should be negotiated! This is a buyer’s market! The bank doesn’t have a system that dictates the final interest rate to charge you. Someone..
decides...
......they will say it’s risk based.
That’s true. You are higher risk to the bank if you sign such a huge financial commitment without knowing your rights to negotiate.
No bank wants a customer who will sign on an interest rate they can’t afford because they will
......they will say it’s risk based.
That’s true. You are higher risk to the bank if you sign such a huge financial commitment without knowing your rights to negotiate.
No bank wants a customer who will sign on an interest rate they can’t afford because they will
soon default! Banks hate impairments!
19. House prices go up by buyers’ ignorance and they can be brought down by informed buyers.
The End.
E&OE
19. House prices go up by buyers’ ignorance and they can be brought down by informed buyers.
The End.
E&OE
