select
|

Deal or no deal?

Potgieter, who is also a qualified Conveyancer, says: “There are circumstances that some sellers find themselves in that could make them desperate to sell their home.” He highlights the case of one seller who had been offered a new position in Cape Town to start in the New Year. The children had to start at their new school, so the move had to be a speedy one. For this seller, renting out his property could always be an option, but stories of bad tenants had left him wary of taking this route, leaving no other choice but to sell, and sell quickly.  “Desperation, be it financial or otherwise, and property sales make strange bedfellows,” says Potgieter.

He says that there are a few tips that sellers can take note of to avoid making the wrong decision during a property sale while they are under pressure:

The seller is asking R1,5 million, the purchaser offers R1,8 million or more in cash

Potgieter notes that in the current economic conditions, every serious and honest buyer haggles about price – no exception. Even though the seller pays the estate agent’s commission, some buyers may even try to reduce that. Should a buyer offer more than your asking price, be cautious.  As the age-old saying goes, if something is too good to be true, it probably is. “There is a good chance that the seller is being conned in this scenario, so they should insist on meeting the buyer in person. It is important to listen to your gut feel and follow your instincts. If the seller is still thinking about pursuing the deal, they must insist on delivery of banker’s guarantees for the full purchase price and payment of transfer costs prior to occupation,” says Potgieter.

You are offered your price or slightly more, and the buyer needs to move in immediately.

An old maxim in property states: ‘No guarantees – no keys.’  Potgieter says that now, more than ever before, this holds true. Sellers should never allow occupation of the property prior to transfer or at least until guarantees for the full purchase price have been delivered and all transfer and bond costs have been paid. Once this has been done, chances are much slighter that the deal will fall through. Once a buyer has occupation, it is extremely difficult to get rid of them should the deal turn sour.

The buyer pays the purchase price in instalments

“For some reason many buyers in the current market think that all sellers are in serious financial trouble. They then get creative and invent weird ways to assist the seller get rid of their property, while many of them simply do not qualify to get a cent from any bank.
Avoid instalment sales at all costs,” warns Potgieter, “Although it is a perfectly legal way to buy and sell property, often the buyer is not able to keep his side of the bargain causing the deal to fall through and the property to be off the market for a very long time.”

The buyer insists on using his own transferring attorney

In our legal system, the seller appoints the transferring attorney and the buyer pays the fee. That is the way it works. Often buyers insist that a family member who is an attorney and lives in another town attends to the transfer as this would save the buyer bags of money. “In cases like these, it is best for sellers to bury their pity and insist on using someone they know or who comes highly recommended. If an attorney acts outside the area in which they have jurisdiction they will have to appoint correspondents to attend to the dreary task of getting clearance figures from city councils, lodgement of deeds in the Deeds Office and so on. It means double work and most possibly delays,” advises Potgieter.

“Lastly,” says Potgieter, “When in doubt and especially before accepting an offer, consult with a property professional of good standing. A reputable estate agent or attorney will be able to speedily advise on the possible pitfalls of an offer and suggest changes to protect both parties. Their fee may prove to be the best investment ever made,” he concludes.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 24 Nov 2017
      Demand for secure estate living in Hout Bay has risen sharply in recent years, precipitating a spike in development with estate homes now accounting for 20.24% of the property landscape with the launch of an exclusive new gated development on 26 November adding 20 more units to the existing 1250 estate homes.
    • 24 Nov 2017
      There are some things that money can’t buy – spectacular views from Mouille Point to the V&A Waterfront and a trendy and lively neighbourhood that encapsulates the very best of the Cape Town lifestyle.
    • 24 Nov 2017
      Tshwane’s four-bedroom Mayoral mansion, nestled among ambassadorial residences in the upmarket suburb of Muckleneuk, fetched R5.1 million after spirited bidding at High Street Auctions’ final sale of the year.
    • 23 Nov 2017
      Reserve Bank Governor, Lesetja Kganyago, said that the Monetary Policy Committee had once again decided to let the interest rates remain unchanged with the repo rate at 6.75%, and the prime lending rate at 10.25%.
    • 23 Nov 2017
      As the holiday season approaches, most of us are counting the days until that year-end bonus hits our account. There’s nothing quite like a little bank balance booster to get us in the holiday spirit.
    • 23 Nov 2017
      The Adelphi Centre (now entitled “ARTEM") in Sea Point, Cape Town, is being extensively renovated, and once complete will offer an ultra-luxurious galleria style shopping centre unlike any other seen on the Atlantic Seaboard or in Cape Town.
    • 23 Nov 2017
      If you are looking to sell your home in today’s real estate market, there are certain things that you need to include both inside and outside your house. Today’s generation of home buyers is looking toward a more eco-friendly, energy and water conscious home, and if your house stands out then you are more likely to be able to sell it.
    • 22 Nov 2017
      Most people know of the Community Schemes Ombud Service (CSOS) and that levies must to paid to fund its operations. In this article the experts at Paddocks will address some of the issues that are causing confusion.
        
    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