What to consider when buying a home
Category BUYER'S TIPS
More than 50 per cent of home buyers end up buying properties that are not in line with their original briefs or intentions.
According to Ronald Ennik, principal and founder of real estate agency Ennik Estates, they might originally insist on 'north facing' or 'no pool' or 'it must have a study' or 'it must be in xyz area' and end up buying a property that varies substantially from the original brief. This is not a problem. We are used to that. It's human nature. It is common even with regard to their budget.
Consider the following when buying a property:
- Prospective buyers need to visit, and look at, a variety of homes in order to fully understand the value that is - or, indeed, isn't - on offer. It is important to be as familiar with pricing and value as the agent.
- When buying a home it is essential to see as many houses in your target area as possible. You are buying the most important asset of a lifetime - and missed opportunities seldom reappear.
Using your senses
This is about using all your senses. You want to see the roads, talk to residents, take note of the trees, smell the flowers, and experience the traffic flow. You need not only to see the home but also to get a feel for the environment in which it is located.
- Part of the homework is not to eliminate options too quickly without even viewing them. My key tip to buyers is to go into the areas of their focus - and look at a minimum of at least 10, and perhaps even as many as 15, homes. In doing so, you should not be guided only by asking prices. There isn't a set formula.
- Some properties will be priced with a 10 to 20 per cent premium - thus providing wiggle room for negotiation.
- Other properties will be bang on the right price - even to the point of being perceived as relatively cheap. This reflects a seller/agent strategy to price low ('offers from...') and build up price-enhancing competition among interested buyers.
Do the homework
- Area-focused agents are a great source for this information.
- As an aspirant home buyer - and, particularly, a first-timer buyer - it would help to ask your agent, bank, or mortgage originator, to pre-qualify you financially so that you have a very clear idea of your budget parameters.
In doing so, don't forget to factor in the transfer costs.
"In addition to only using an accountable and experienced Agent/Agency when purchasing a property always consider if you were to resell what are the pros and cons about the potential property. ie. be wary of steep driveways, lots of stairs, and other aspects that may hinder a potential sale further down the road."
"If you are buying an apartment or sectional title property check the levies and special levies so there are no hidden surprises that will affect you and especially the pet policies," says Hamilton Potts.
Harrison says as this will be the largest purchase you are likely to make, ensure you work with an agent you trust and who listens to you and understands your requirements regarding price and size of property.
"Ensure that the agent will guide you through the purchasing process especially and discuss important aspects such as location, security, schools, access to amenities like hospitals and shopping malls and access to Highways and Airports amongst others," he suggests.
Understand the entire costs of purchasing a property:
"It is important that first time buyers understand the entire costs of purchasing a property particularly that there are bond costs and transfer duty costs which are over and above the actual purchase price," says Richard Anderson of Local Real Estate, Ballito.
"There are differences between purchasing land, an already built property and off plan purchases. The agent should establish the end goal for the buyer to assist with this decision.," he says.
Local Real Estate agent Jake Morgan, says: "Being pre-qualified as a buyer who can afford a certain priced property is a definite advantage. This is a free service so use a trusted originator, as it also saves time on the purchase".
"When buying a ready built home, request the house plans and make sure that they are up to date and approved with an occupational certificate as sometimes renovations have not been approved by the municipality which really complicates the process. This is a vital piece of information.
"If buying for investment purposes, such as a rental property ensure you are purchasing in a popular area and usually less is more, as there is demand for a 2 bed 2-bathroom apartment. Avoid higher priced purchases as this means the rental needs to be higher and it could be a struggle to rent out," says Morgan.
In the meantime Rory Anderson another Local Real Estate agent in Ballito says, many buyers are now leaning towards secure Estates and complexes wanting security and facilities but even within these Estates, location is critical for future growth and resale.
"The properties that see the best returns on investment are those that are not on fence lines, that enjoy lovely outlooks and are also not too far from the entrance gate(s). It is also important for purchasers to think ahead and choose properties that will appeal to a wider market such as a lovely single level property as these will also enjoy faster growth than their counterparts with stairs and no gardens".
Author: Team Seven