15 minute read
Thinking it through
BY BONNY FOURIE bronwyn.fourie@inl.co.za
There are many things to consider when entering the property market and an experienced agent can go a long way in helping you make the right choices
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THE MOST exciting part of the property buying process – apart from being handed the keys to your new home – is viewing the potential properties you could call home.
By this point, you probably already have your paperwork in order and, hopefully, have pre-approval for a bond.
But, be warned, as exciting as viewing properties might be, you will probably end up getting confused at some point or second guessing yourself. Property experts share this valuable advice to help you get through the process as smoothly as possible, with the right home at the end of it.
So, let’s start at the beginning.
What should I consider when deciding on an area to live in?
The first criterion, says Jawitz Properties Sandton branch manager Jeremy Craig, is your budget and whether the area you fancy will offer what you want within that budget.
“It is always a good idea to get some indication of what you can afford so you can go shopping with confidence.”
Important considerations include schools, places of worship, retail access, distance from work as well as access to major arterial routes and the kind of traffic you will face.
“Generally, the closer to the CBD, the more expensive an area becomes and you will need to consider that in your budget.
“There are different types of properties you can buy, depending on the lifestyle you intend to lead. Depending on whether you are an executive or a family, downscaling or upscaling, there should be options in terms of houses, clusters or sectional title to choose from.”
Adrian Goslett, regional director and chief executive of Re/Max of Southern Africa, says many buyers focus on the home itself, and compromise on its location, but this is likely to hurt their pockets.
“It is always better to put location as a top priority and rather compromise on the property. While it is impossible to change a property’s location, the home can be renovated or changed to meet the owner’s needs.”
Matseleng Mogodi, founder and principal of Snooks Estates, says it is important to know the surroundings and the feel of the place where you are considering living.
“Look at it objectively because this will help you to erase some of the doubts that normally creep up on individuals before buying a property.
“The key considerations centre on what your family needs, such as, are there small children who will need to attend schools nearby or creches? Is there reliable public transport and proximity to work to avoid long hours on the road?”
If there are teenagers, is the area is safe for young people as they will want to spend time with friends and socialise.
And, while Mogodi says it might seem unfair to mention this, if one partner struggles with substance abuse, the area you choose to buy in could promote or curb this habit.
“You may also have to look at your lifestyle, and the security in the area where you want to buy. It is a big choice to want to stand out or blend in, but you also have to deal with the consequences.”
Property practitioner Cacisa Mgudlwa, who is also a town planner and founder of PropertyTalk with Cacisa, says a good location provides potential for exponential growth and development.
“The area needs to indicate whether it has potential demand for property over both the long and short term which increases the value of your property over time.
“Properties in a good location will remain more popular and profitable compared to those in less desirable areas.”
Some important factors to consider when you are looking for a good area to invest in, she says, include:
Safety:
Personal safety and physical security have become two of the most important issues to consider when choosing a neighbourhood to invest in.
Access to public amenities:
Make sure your potential property meets your expectations and needs.
“Having good access to amenities not only drives the appetite for investment, but also adds value and desirability to your property. It gives you confidence that the area has good bargaining potential.”
Mgudlwa says people want convenience, so the better the amenities surrounding your property, the more valuable your property should be, and the greater the potential it has to increase in value over time.
Provision of Infrastructure services:
This has an impact on the value of the properties in an area. Adequate basic services, such as water and electricity supply; storm water; pavements; improvement of roads and public spaces elevate the demand for property in an area.
Neglect and poor service delivery, will have a “massive influence on the resale value of a property over the long term”, she says.
While factors such as schools, amenities including hospitals and shopping centres, as well as easy access to highways, and an area’s safety, need to be taken into consideration, resale prospects should also weigh heavily says Karen Turner, property practitioner at Jawitz Properties North Coast.
“Buyers want to avoid buying something now that will result in a problematic future sale.”
Goslett adds estate agents are often privy to listings before they are uploaded to a property portal, so it is not unheard of to have a property sell before it even reaches the market.
“Partnering with an estate agent allows you first pick of any suitable listing as soon as they enter the market,” he says.
Where should I start looking for properties – online or at an estate agency?
Mogodi says there are many more real estate companies listing their properties online than ever before.
“A large percentage of properties are listed online and it should be a bit questionable if the seller or agent does not list properties online.” She says there are many websites that promote properties for sale, so you could send your details and receive alerts when properties similar to your requirements are listed.
“Although there is an influx of properties, it may sometimes be confusing to know which company to go with, because you may have a relationship with one but want a property from another. I would strongly advise that when looking to buy, first check out what is online, in general. Then you approach a property practitioner to hold your hand on this journey.
“The agent will show you what they have, and, if none of those properties appeal to you, they would start searching for properties to try source one that suits your needs.
“When you have a great estate agent, it is wise to stick with them and they will then negotiate on your behalf among their colleagues and other networks.”
TURNER says it is advisable to approach a reputable agency in your chosen area – an agency with a strong area presence, a decent number of listings and a strong social media presence. “It is not in the buyer’s interest to have too many agencies on board as often the same property is listed with a number of agencies, leading to a search becoming complicated and unwieldy. A good agency, once understanding what the buyer requires, will be able to present a number of viable options and links.”
Estate agents are a great asset to potential homeowners, agrees Mgudlwa.
“It is important to find an estate agent you can develop a good working relationship with in the area you are interested in.
“Their knowledge of the housing market, and their ability to assist you in finding a home that suits your needs, will make the process much smoother.”
In addition to finding agents online, she says you can also ask friends and colleagues for referrals.
“Look up the agents’ websites and online profiles. It’s important to read about their specialties and experience and check out customer reviews. Another, somewhat passive, way to find the best real estate agent is to identify which agents have the most listings in your area and make a list of those to contact.” You should get a feel for the property practitioners who are most active in the area you are considering, Craig says, adding you should make contact with them to discuss your requirements and get onto their mailing lists.
“Start perusing the main property portals and subscribe to receive their alerts. To ensure you are on an agent’s hot list, contact them frequently. Being top of mind puts you in a good position when something comes up and they think of you first.”
How can I make sure I go into a viewing with an open mind?
Turner says some buyers have preconceived ideas about certain areas or estates, or a certain configuration of bedrooms and living areas, and sometimes need to have a more open approach to explore an area or option that they had not previously considered. “Sometimes they also express concern about a wall colour or there may be cupboards, carpets or furnishings or an overgrown garden not to their taste, which can stop them realising the potential of a property.
“Very often buyers are unable to visualise how their furniture will fit a certain space but you generally need to be able to look past these issues and reach some form of compromise.”
It is important to have a list of requirements when you are considering what type of properties to view, Craig says.
“But I’d stress that you should have an open mind and not be too rigid with your requirements to avoid limiting the options that could be available to you. You have to keep in mind that you will need to compromise on certain requirements depending on your budget but, more importantly, on the basis that no property will ever fully tick all the boxes.”
In essence, you need to know what you are not prepared to compromise on but be mindful that there will be some aspects of a property that will not be 100% right.
“Unless you are building it yourself – and even then it may not be 100% – you may be looking for a very long time for the perfect home.”
Often, potential buyers come to a viewing without first getting know what they would qualify for in terms of a bond, Mgudlwa adds.
“They get carried away with kitchen islands, wood burners and Roman blinds etc, without carrying out thorough research and preparations for finance and budget. It is important to know, and learn about, your bond options as well as other costs involved with buying a property.”
She adds: “People have different ideas about decor. Look beyond the clutter, colours, cupboards and carpets that might not be to your taste and be open to hidden potential. Stay open-minded. Look for the potential in the home you are viewing that might not be obvious when you first view it. Also, says Mogodi, sometimes photos are so good that the potential buyer thinks the property is perfect. So, ask questions and check out all the property’s features before you physically view it.
“This helps to manage expectations because many times a buyer will say, ‘But I didn’t know this house was so bad – the photos were misleading.’”
“It is important to ask the agent to be truthful so you go viewing with an open mind and don’t end up feeling misled.”
Ironically, though, she says a lot of buyers will see a property at a price they consider a good one, but then expect the seller to repair many things.
“It is crucial to understand that sometimes sellers will sell because they have financial challenges and have to sell fast, meaning that they would be willing to get less than the market price.
“The great thing about the new Property Practitioners Act is that it is now mandatory for sellers to disclose the defects and for the buyer to sign in acknowledgment, so all parties will know what they are getting.”
Another critical aspect to bear in mind, Mogodi adds, is that, say a property is painted a what you think is a hideous colour, this is no reason not to not buy it. There are many other smaller things that you may not like, and which may not be as costly to replace. If that is the case, take the property and estimate how much those changes would cost you to fix to get the house you want.
“Last, you must realise that most houses will not give you 100% of what you want, and it’s up to you to turn that home into what you dreamed of.”
How can I ensure I leave a viewing with all the information I need?
You should keep a list of questions handy that you can refer to, Craig says.
“There will be some unanswered questions from your first viewing but you can always follow up with the agent to get answers to questions you did not ask the first time around.”
You should also make sure you have allocated enough time to view the property properly, Mogodi says.
“Sometimes people are in a big hurry and they may even say, ‘No, I am going to change this or that,’ and this makes them unobservant. It may seem rude to ask to check cupboards, for example, but if sellers are serious about selling, they will agree to have the house checked thoroughly.”
If the property is really big and expensive, it would also be advisable to hire a property inspector – not a property valuator or agent – to check it thoroughly.
“Sometimes the seller genuinely does not know trees are a big problem somewhere, and using an inspector might reveal some serious problems. But also, it might reveal the heaven that it is. It is a worthwhile expense, considering the investment you are about to make on the property.”
Turner says an agent who specialises in a particular area should have the knowledge and expertise to provide a buyer with all the information required.
“An agent should be able to answer questions on the area and have a good overview of the property market in general.
“Agents should also have an in-depth knowledge of the property and encourage buyers to have a really good look at everything – open cupboards, flush toilets, look at the state of windows, among other things, and even carry out a professional home inspection to establish that everything is in order.
“The agent should also discuss fibre options, security and, again, advise the buyers to get a feel of the area themselves.”
Mgudlwa says you should make a list of must-haves before you go house viewing, and investigate the area before you view the property.
“Get a feel for the neighbourhood, day and night, and check on security with the local police station. If you are buying anything but a freestanding home, high noise levels and bad views could be a deterrent.”
In addition to opening cupboards and flushing toilets, she says you should look underneath bathroom and kitchen sinks, flick switches, and open and close windows and doors and check the state of shelving, flooring, plumbing and general functionality.
What are the chances that I will find a home that ticks all of my boxes?
Given the long-term nature of a property investment, Goslett says there are some essential elements that should be carefully measured beforehand, to ensure you are making the right decision and purchasing a property that meets your needs both now and in the future.
“Before even looking at properties, you should sit down and determine what features you currently need in a home, as well as the features you may require in the future. The biggest restriction when looking to purchase is affordability. Financial restrictions could mean compromising on certain aspects, even if only for the time being. Ensure that you can afford to sustain the financial obligation before entering into the agreement.”
Mgudlwa says it is important to rank each of the listed features you want by importance. While it is unlikely that you will find a property that will check every single box on this list, this exercise will help you focus on properties that work for you and your family.
Echoing this, Turner says it is highly unlikely that all boxes will be ticked and agents should always encourage a degree of openmindedness with any purchase.
“Size, and possibly precise specifications can be compromised on, however, the location needs to tick all the boxes especially if being close to the correct schools and amenities is a priority for the purchaser’s lifestyle.”
Anything that is not structural can be changed, but Mogodi says the determining factor would be the cost of making that change.
“Sometimes buyers become very creative with spaces and make them really cool, so if the size feels good, go ahead. But when there are awkward staircases, or doors in the wrong place (for you) and things that are just not talking to your kind of style, it would be wiser to alert the agent.
“Buyers can buy a property they do not really like, and then start blaming the agent when it does not change to what they would like it to be.”
PROPERTY viewings can be an exciting part of the buying process, especially if you know what to look out for. PICTURE: KINDEL MEDIA/PEXELS
