A low offer is better than no offer

BY BONNY FOURIE bronwyn.fourie@inl.co.za

Getting an up-to-date valuation from a variety of reputable estate agencies will ensure you are able to price your property accurately.

Buyers who are open and honest with their agents are more likely to find the right home - and at the price they can afford

Q: I am planning to sell my property. How can I get the right valuation and, therefore, the best possible price?

A: The first step for anyone even vaguely considering selling a property should always be to get an up-to-date professional valuation.

Better yet, get two or three of them, from a variety of reputable estate agencies. That way, you have solid confirmation that you’re in the right price ballpark and can start getting to know a few agents who might be a good fit to handle your sale.

Valuations can provide very useful insight into the skills and experience of an agent. A good valuation should include hard market data and statistics, as well as more intuitive information, based on an agent’s hands-on experience with buyers, sellers and the market in your area.

Price recommendations should always be supported by a comparative market analysis showing exactly how a property compares to its competition.

If an agent can’t or won’t deliver this level of detail, I would be very wary of taking the professional relationship further. – David Jacobs, Gauteng regional sales manager for the Rawson Property Group

Q: We are looking to buy a property and, while we want to be fair with any offers, we also need to ensure we do not pay more than we have to. What aspects should we be aware of that can add to or detract from a property’s value?

A: Schools and universities are a big priority and buyers will pay more for such a location. Additionally, the size of the accommodation and land and style of the home play a role. It is, for example, easier to sell a three-bedroom than a twobedroom home but anything above four bedrooms will not sell for a higher value.

The condition is also a factor. Buyers pay more for a wellmaintained and modern home because most do not want to have to do any work on it.

Levies can also be a dealbreaker. The levies in some complexes make a home there unaffordable for buyers and sellers then have to be more accommodating with their asking prices to compensate.

Neglect and poor maintenance and outdated finishes will most certainly impact the value. It will also be affected if the neighbourhood is poorly maintained or has a high crime rate.

Security has become a top priority for buyers, so if you live in a neighbourhood with community safety initiatives, consider joining them because, aside from a proactive role in keeping your neighbourhood safe, it also ensures property values are not negatively affected by crime. – Gerhard van der Linde, managing director for Seeff Pretoria East

Q: I am working with an agent to buy a property but she has asked for very detailed financial information. Is this normal?

A: Being 100% honest with your real estate professional means that your agent can show you homes that you should be able to afford, even if the initial asking price is beyond your budget.

Estate agents usually know the sellers and can tell if they would be willing to accept a lower offer. If you’re honest with your agent, she can then recommend an amount within your budget that the seller would be willing to consider.

An agent can only narrow down the search and pinpoint the perfect property based on the information that you provide. If you work with an agent you trust, and are comfortable sharing information with, the process will be far easier and quicker.

When you start searching for a home, it is best to be as upfront as possible with your real estate professional. This approach will guarantee that you leave a satisfied new homeowner. – Adrian Goslett, regional director and chief executive of Re/Max of Southern Africa

Q: What does it mean to “refinance my home” and how does it work?

A: Refinancing means taking out a new home loan for the difference in value between your property’s original purchase price and its current estimated value. This extra money can then be withdrawn to pay off more expensive debt like credit cards or personal loans or be kept as equity in the bond.

One of the main benefits of refinancing is the opportunity to secure a better interest rate than on your original bond. This can effectively reduce monthly repayments (assuming the equity is not withdrawn), making it a valuable tool for homeowners struggling with cash flow.

However, it’s important to note homeowners will have to cover the refinancing costs, including bond registration fees, legal costs, VAT and deeds office levies.

Your bond originator can help you assess whether the short-term costs are worth the potential benefits of refinancing. It’s not a one-size-fits-all solution, so it’s important to discuss the options as they relate to your specific circumstances. – Leonard Kondowe, national admin hub manager for Rawson Finance

Q: With interest rates at their lowest levels in decades, and a huge choice of inventory at the moment, quite a number of home buyers and investors are making really low offers to purchase in the hope of picking up property bargains. How should I, as a seller, deal with low offers?

A: Rather than taking offence and immediately rejecting these offers, sellers need to take a deep breath, recognise that they are (in most cases) only intended as opening bids in a negotiation, and get ready to make counter-offers as that negotiation proceeds.

Sellers should take the view that even a low offer is better than a total lack of interest because it has a potential to lead to a satisfactory outcome – if handled correctly by a qualified agent with excellent negotiating skills.

And, of course, they always retain the right to accept or reject any offer at any stage before the sale agreement is signed. – Berry Everitt, chief executive of the Chas Everitt International Property Group