Strengthen your chances of your offer on a property being accepted

When a person decides it’s time to purchase a home for himself, it is often an emotional decision, one that starts with a “feel” of wanting to own something for himself.  When he looks for a property, it will be the one that he feels most at home in that he will put in an offer on, sometimes forgetting to do a fair bit of practical legwork beforehand regarding property ownership.

“When putting in an offer to purchase a property, the first thing to consider is whether you’re putting in the best possible offer you can,” says Rene Barry, partner at Henkes Nolte-Joubert Attorneys.

Putting in the best possible offer means: the market related value of the home has been matched, the buyer is offering the full amount that he can afford, and he has his finances in order and strengthened his position by obtaining pre-approval from his bank before he has started looking for a property.

When assessing one’s financial situation on the full amount that one can afford, all the expenses pertaining to buying that property have to be taken into account.  Apart from the monthly bond repayments, there are other expenses that will affect the buyer a great deal, such as insurance, rates, water and electricity, levies if living in a sectional title or Home Owners’ Association run scheme, maintenance on the property and possible increases in interest rates or increases for services.

“In other words, when establishing affordability, it’s not just the bond repayment, it’s whether you have enough leeway and extra money each month to cover any unforeseen expenses as well as the full upkeep and running of your home,” says Barry.

Once the buyer has established that he can wholly afford the property he is putting in an offer on, he should then ensure he has cash put aside for the transfer fees, transfer duty, bond registration fees, and a sizeable deposit on the property (if he intends on putting down a deposit).

Putting a deposit down conveys a message of seriousness about buying, and strengthens the chances of the seller accepting the deal.  When a deposit is offered, however, it must be cash available immediately, not money that will take days or weeks to be available, such as funds that are in fixed accounts or overseas funds, as this can cause delays which could sway the seller into rejecting or waiting for a better offer, she advises.

“If all this is established beforehand, the buyer’s offer will stand a high chance of being accepted, as the seller’s needs will have been met without a lot of negotiation or complications. Most property sellers would like their home to sell in a short time with minimum fuss and will welcome a buyer who has everything in order before submitting an offer,” says Barry.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 15 Jun 2018
      The second quarter of 2018 has proven to be the turning point for Midrand’s real estate market, especially the upper end which started to waver towards the end of a tumultuous 2017 with a notable drop in both sales and average selling prices.
    • 15 Jun 2018
      According to data recently released by FNB, the average age of a South African home buyer has increased from 38 to 44 this year. In an attempt to help first-time buyers enter the market sooner, Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, walks us through the steps of saving for your first home.
    • 15 Jun 2018
      Putting your house on the market can be a stressful process. There are so many decisions to make that will impact how quickly your house is sold and for how much you can sell it for. It’s a serious money game where you can’t afford to make the wrong decision.
    • 14 Jun 2018
      The word tourist describes someone who is visiting South Africa for a limited time and is probably not going to buy a property here – so why is the tourism industry so important to the real estate sector?
    • 14 Jun 2018
      Serengeti Estates has entrenched its status as one of Johannesburg’s most desirable addresses for a spectrum of homeowners with its launch of The Signature Residences, a new cluster village.
    • 14 Jun 2018
      Keen interest shown at an international event in Hamburg last month has revealed that German investors have a surprisingly healthy appetite for South African real estate, especially those in the market for retirement properties.
    • 13 Jun 2018
      Well located urban properties, from that convenient city pad to the family townhouse or the coveted buy-to-let property can provide buyers with great investment returns over the long term. This is according to Fine & Country which have a number of offices in Johannesburg specialising in the sale of urban properties.
    • 13 Jun 2018
      A R200 million 51-unit luxury apartment project on a vacant lot at 169 Main Road Green Point places the capstone on the radical transformation of the stretch between de Waterkant and Glengariff Road.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us