select
|

How to choose the best offer for your home

In any town or suburb where the demand from prospective buyers exceeds the number of homes for sale, it is usually only a matter of time before property sellers start to receive competing offers to purchase – and have to decide which of them to accept or reject.

And while this may seem like a good problem to have, the decision might not be as easy to make as you think, because selling a home is often about more than just the money, says Shaun Rademeyer, CEO of BetterLife Home Loans, SA’s biggest mortgage originator. 

“What if you received an offer for considerably more than your asking price, for example, provided you were prepared to move out and give the buyer occupation by the end of the month? You might not be willing - or able - to accept it.

“On the other hand, you might choose to accept a lower offer from a prospective buyer who has already been pre-approved for bond finance rather than a higher offer from someone who still has to organise finance or sell their current home.”

Indeed, he says, there are many factors to consider and, as any good estate agent will agree, you really need to look beyond price before you decide – and to resist being pressurised into making a hasty choice. “A buyer that makes a good offer but says it is only on the table for a couple of hours, for example, is probably not that serious and is therefore likely to prove difficult to deal with during the transfer process.”

So, if you do end up in the middle of a bidding war for your home, you should start by looking for the offers with the fewest contingencies or “get out” clauses.

Ideally, says Rademeyer, your would-be buyers should not have another property to sell before they will actually be able to buy yours, and should have home loan pre-approval so you can be confident that they really will be able to secure the necessary home loan within a few days.

“Next, you may want to consider which prospective buyers are most willing to accommodate your timing as regards occupation of the property. If you need to delay a move until the end of a school term, for example, or until the end of a work contract, that can have a significant influence on which offer you will accept.

“In addition, you should find out whether the competing buyers already have the cash in hand that they will need to pay a deposit as well as the transfer duty, bond registration costs and legal fees. It is no good accepting a higher offer if you are going to have to wait months for a buyer to get this cash together, and your agent should in fact only bring you offers from people who are financially able to buy your property as well as willing to do so.”

 He says you also need to make sure that you negotiate transparently and in good faith. “For example, if you tell someone who made an offer on a Saturday morning that you’re not going to respond until Monday, you must also tell them that this is because you are expecting further offers after your show house on Sunday.

“And if you receive several similar offers, you should be open about that too and give each of those prospective buyers the opportunity to either confirm that this is their ‘best and highest’ offer – or to find out what it would take to make you pick their offer and decide if they want to do that.

“However, you must then be prepared to accept the improved offer. Tempting as it may be to keep a bidding war going, most buyers won’t like it and you will run a very high risk of ending up with no offer at all.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 24 Apr 2018
      The thing about the property ladder is that at some point in our lives we all have reason to want to climb a rung or two higher. Sometimes, it’s because we’ve outgrown our previous dream home, or because we want to be in a better neighbourhood that’s closer to work or to schools. Sometimes it’s because our circumstances have changed, and we’re taking care of elderly parents or relatives. Sometimes, it’s just because we want a property that reflects the financial status our hard work has won.
    • 20 Apr 2018
      Whenever changes in the political ecosystem of a traditional property market create uncertainty, smart investors begin to look elsewhere for new opportunities. Property experts at IP Global have analysed the trends and crunched the numbers to find new markets to explore in Europe and the United States.
    • 20 Apr 2018
      Energy and water self-sufficiency are increasingly important factors in home buyers’ choice of property – especially in Cape Town where the extreme drought of the past few years has made municipal supply costly as well as uncertain.
    • 19 Apr 2018
      During the last decade, rampant development has progressively transformed Cape Town’s property landscape with densification being the order of the day, but there are still one or two hidden gems like Scarborough which have retained their original character, offering an inimitable lifestyle and an attractive investment opportunity.
    • 19 Apr 2018
      The rental market is a cut-throat sector of the real estate market that waits for nobody. According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, first-time renters need to be fully prepared before they even start the process of looking for a place to rent in order to avoid the disappointment of losing out on their ideal property.
    • 19 Apr 2018
      Choosing to buy your first home instead of continuing to rent is a big decision that will usually take some time to put into action, but the sooner you can save up a sizeable deposit, the closer you will be to reaching your goal.
    • 18 Apr 2018
      Selling your home is no small task and as you will quickly find out, there are a lot of misconceptions about the process. Gerhard van der Linde, Seeff's MD in Pretoria East lists the top 5 misconceptions when you are selling your home.
    • 18 Apr 2018
      The Cape Town municipality is now installing water-management devices at properties that have been non-compliant with the new level 5 water restrictions and there are talks of fines between R5,000 and R10,000 for households that use too much water.
        
    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