How to make your offer to purchase more attractive to sellers

You have finally found your dream home and are now ready to put in your offer to purchase, but you are not sure how to go about it and what is involved.

For novice buyers, Van Wyk says it can often be a real disappointment if they have their heart set on a home, just to find that they were a few thousand short with their offer and the seller accepted another offer.

Steve van Wyk, MD of Seeff Centurion, says the best way to secure the property is to ensure that you put in an offer that will get the seller interested.

“Remember, you might not be the only interested buyer. If you are serious, then have a frank discussion with the agent and rather put in an appropriate offer,” says Van Wyk.

“Properties below the R1.2 million to R1.5 million price mark often attract the interest of multiple buyers, and if you are really interested it is best to go in with your best possible price offer. Similarly, any well-priced property close to schools, good transport and those in top-class security complexes and estates, tends to attract good interest.”

For novice buyers, Van Wyk says it can often be a real disappointment if they have their heart set on a home, just to find that they were a few thousand short with their offer and the seller accepted another offer.

In a sellers’ market, it is especially advisable to do your homework in terms of submitting a good offer.

In this type of market, Van Wyk says there tend to be more buyers who compete for a limited supply of property. Chances are the property will attract multiple offers and end up selling for close to or even more than the asking price.

“In a buyers’ market there tend to be more properties and fewer buyers. The onus then tends to shift to pricing, and a smart seller will price in line with the market trends to attract good offers,” says Van Wyk.

“In this type of market, buyers tend to have more bargaining power and, since they are likely to be one of a limited pool of offers, can come in a bit lower.”

“Buying a property is always an exciting activity, but it requires careful consideration as it is a substantial financial and legal commitment," says Van Wyk.
He says a ‘clean’ offer - one with as few suspensive conditions as possible - is likely to make it to the top of the list in the event of multiple offers. An offer that is subject to the sale of an existing property could, for example, cause a notable delay, and may even result in the offer falling through if that property remains unsold by the specified date.

In the event of a cash offer where the cash is tied up in investments, it may also take up to 30 days for the investment to be released.

“Buying a home is a significant financial commitment, and you need to do your homework in terms of the price that you can afford. Bear in mind that if the offer is below the asking price it may be rejected - even in a buyers’ market - because the seller might not be in a hurry to sell,” says Van Wyk.

“I therefore recommend that buyers ensure they have a bit of room to go in with a higher counter offer should that be necessary.”

Another important consideration is whether you will need a home loan.

“In most instances, especially for first-time buyers, a bond is required. The financial institution may also require you to pay a deposit as part of the transaction,” says Van Wyk.

“First-time buyers should also be aware of the additional transaction costs that may apply. Even though the first R900 000 of the purchase price is exempt from transfer duty, there may be bond registration costs, and it is vital to check with the agent what costs will apply.”

To qualify for a home loan, you will need a positive credit record and secure income of three times the loan amount.

It is advisable to undertake a pre-qualification check before you put your offer to purchase in. This way, Van Wyk says you can avoid disappointment.

“Buying a property is always an exciting activity, but it requires careful consideration as it is a substantial financial and legal commitment. It is therefore always advisable to work with a credible real estate agency.”

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 23 Jan 2018
      Many people only start thinking about home-ownership when they are ready to “settle down” or start a family, which is why first-time buyers these days are generally in their mid-30s, compared to those in the previous generation who were usually in their mid-20s.
    • 22 Jan 2018
      Moving away from the city to a country or coastal town and a slower-paced life is a frequent new-year resolution for South Africans, but thorough research should be done before you break free from the hustle and bustle, because making the wrong move could turn out to be a very expensive mistake, and even more stressful for you and your family than staying in the “big smoke”.
    • 22 Jan 2018
      Cape Town is home to many breathtaking and historic homes, but House Invermark designed in 1969 by South African architect Gilbert Colyn, with inspiration from two modernist icons: the Glass House by Phillip Johnson and Farnsworth House by Ludwig Mies van der Rohe is in a class of its own.
    • 22 Jan 2018
      2017 was a challenging year for the South African property market in general, despite small pockets of thriving activity in areas like the Western Cape. As we head into 2018, Tony Clarke, Managing Director of the Rawson Property Group, casts his eye forward to property trends and market influences that could make their impact felt in the New Year.
    • 19 Jan 2018
      Extending from Randfontein in the west to Roodepoort in the east and including the towns of Krugersdorp and Magaliesburg, the West Rand has a plethora of property available to residents who choose to make this unique area their home.
    • 19 Jan 2018
      When it comes to financial planning, doing the work to ensure you’re prepared for unexpected emergencies is just as important as ticking off your other goals and New Year’s resolutions. The beginning of the year is also the perfect time to review your various insurance policies.
    • 19 Jan 2018
      No surprises at the first Monetary Policy Committee of 2018, as Reserve Bank Governor, Lesetja Kganyago, announced that the interest rates would stay at their current levels.
    • 18 Jan 2018
      The Southern Suburbs make up some of the most popular residential areas in Cape Town, comprising charming groups of suburbs which lie to the south-east of the slopes of Table Mountain. It is seen as the city's most expensive residential neighbourhoods with a choice of various private schools, upmarket eateries, wine estates, beautiful homes and trendy apartments.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us