select
|

Sellers: Should you accept this offer?

There’s more demand for property these days and there are more sales taking place, but prices are not necessarily rising, so it’s a challenge for sellers to know whether to gladly accept an offer to purchase on their property or to hang on for a while and hope for something better.

Unfortunately, it’s also hard for most property owners to detach from the memories their property evokes and view the sale as a purely financial transaction. No offer is ever really going to seem good enough, and this is why they need to lean on the expertise of a trained and reputable agent.
A good agent will tell you honestly what market activity is like in your area at the moment, how long homes are staying on the market before selling, what prices are being achieved and whether they think you will get competing or additional offers if you keep your home on the market for a bit longer.

However, the final decision will always be up to you, so it also helps to do some serious thinking about your financial position and your reasons for selling before you list your home for sale. For example, if you are relocating to another town or country, or you have already bought your next home, you may need to move fast to finalise this sale. And accepting a fair offer is generally the best way to do that, even if it is not as high as you had hoped.
 
Similarly if you are a “distressed” home owner who must sell because you can no longer afford the bond repayments but would like to keep your credit record intact, it would also be wise to get your agent to negotiate hard but accept a fair offer as soon as possible.

On the other hand, you need to know what your absolute bottom line is – even if you don’t tell anybody else. This is the point at which you would lose money on the deal because you would have to add your own cash to the purchase price in order to pay off your home loan - and risk being unable to purchase your next home for lack of a deposit.

And finally, you should always consider the terms of an offer . It may be spot on in terms of price, but too demanding in terms of when the buyers want to take occupation, or what they expect you to repair or replace as part of the deal. In which instance, if they are not prepared to negotiate at all, your agent may well advise that it is better to decline.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 21 Feb 2018
      These days most buyers are using online property portals like Private Property when house hunting due to the convenience, up to date information and variety on offer. “The property portals have revolutionised the way buyers shop, but they do need to be cautious – viewing photos online is no replacement for viewing the property in person,” says Bruce Swain, CEO of Leapfrog Property Group.
    • 20 Feb 2018
      Owning a home is a milestone that most South Africans aspire to. Becoming a homeowner is a step towards growing personal wealth and owning an asset that appreciates in value over time, provided of course that the correct principles are applied during the buying stage of the process, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 20 Feb 2018
      The suburb of Greenstone in Johannesburg east came to be over the last two decades. “In the beginning, it was literally just a hill with not so much as a shopping centre,” says Michael Levy, Property Consultant at Jawitz Properties Bedfordview. Today it has plenty shopping facilities and is fully built, boasting high-density, upmarket housing and residential estates, though still has a few pockets poised for commercial development.
    • 20 Feb 2018
      A major shift in the ageing paradigm has precipitated an equally dramatic transformation in the retirement sector, with modern accommodation options worlds away from the conventional model.
    • 19 Feb 2018
      Possibly one of the biggest sources of contention between landlords and tenants surrounds the rental deposit. “Most tenants rely on getting their rental deposits back when moving, so that they can use it to pay a deposit on their new home. Having it withheld or even having large amounts deducted can lead to a lot of distress,” explains Bruce Swain, CEO of Leapfrog Property Group.
    • 19 Feb 2018
      Situated approximately halfway between Johannesburg and Pretoria, Midrand was established in 1981 and forms part of the City of Johannesburg Metropolitan Municipality. It has become one of the major business hubs in the country with major pharmaceutical, textile, telecommunication and motoring giants situated within its boundaries.
    • 19 Feb 2018
      The PayProp Rental Index Annual Review of 2017 shows that the rental market suffered from much volatility during the year. It kicked off with rental growth spiking in January with weighted year-on-year growth (YoY) growth peaking at 8.3% before dropping to 6.34% in July, dipping down to less than 5% in November and then experiencing a slight uptick at 5.75% in December.
    • 19 Feb 2018
      While most homes in cluster complexes, estates and other gated communities come with at least one garage or carport, residents would often like additional permanent parking or storage areas for things like trailers, bikes, boats and caravans.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK