Offer to purchase on property

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Taariq404

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Northcliff, Gauteng
Hi,

I've been house hunting for a few times. I've put a few offers in, some as little as 10% less than asking price and others close to 25% less, all of which have been rejected.

The offers have been via email or over the phone, I am yet to sign an actual offer to purchase form.

My question is how do I know that the agent is actually submitting these offers to their clients? Most of them are actually offending by my offer as if it's their own property.

I've had a few agents lie about the levies up until the last minute when I basically force them to send me a levy statement, so I can I trust them to put my offer on the table.

Thanks.
Taariq
 
Estate agent aren't in the business of selling houses or they get too much commission and live of one deal a month. I'm not sure.
 
I've put in a few offers in my lifetime. I tend to let the agent propose a first offer and then we really just chat about it. The likes of "Do you think they'll accept this amount?" etc. Try and be less demanding maybe? They really owe you anything and don't work for you.
 
I know most areas were affected by a ridiculous increase in their municipal valuations.

I have been following the news.
https://www.property24.com/articles/predictions-for-sas-residential-property-market-in-2019/28135

As I've said, it's between 10-25% lower than asking, most of which needs a lot of attention.

Most agents will tell you that the price is negotiable within reason, I don't think 10% is out of reason especially if the bathrooms are from the 50s and the paint is peeling off of the walls.
 
I would cut ties with an agent that told me he has a verbal / email offer. I am not interested in any offer unless it's in the form of a proper written and signed offer to purchase.
 
Milano said:
I would cut ties with an agent that told me he has a verbal / email offer. I am not interested in any offer unless it's in the form of a proper written and signed offer to purchase.
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Fair enough, but most of them ask upfront what the offer would be so that 'they can fill it in on the form'. I have requested the form before and that was the response I got.
 
Milano said:
I would cut ties with an agent that told me he has a verbal / email offer. I am not interested in any offer unless it's in the form of a proper written and signed offer to purchase.
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That's a waste of paper for the negotiation.
If you are negotiating and going back and forth a few times, you can do it verbally or on email first. Then only do a real final offer formally.
 
Taariq404 said:
Fair enough, but most of them ask upfront what the offer would be so that 'they can fill it in on the form'. I have requested the form before and that was the response I got.
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I would cut ties with an agent that won't let me read the OTP before I make an offer.
 
Taariq404 said:
Fair enough, but most of them ask upfront what the offer would be so that 'they can fill it in on the form'. I have requested the form before and that was the response I got.
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True that is the routine. I imagine they do that to avoid time-wasters. So you mentioned in the OP that you have never signed an OTP. So you have told the agent the price you are willing to pay and then what happens next? Have you told them you are willing to sign an offer, and then?
 
rietrot said:
That's a waste of paper for the negotiation.
If you are negotiating and going back and forth a few times, you can do it verbally or on email first. Then only do a real final offer formally.
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That is what I assumed.

FYI, this is a starter home so nothing over R1,5m. Most of them were on townhouses under R1m.

Maybe I just have really bad negotiation skills.:laugh:
 
You must also remember if you are at the low end of the market there is very little room for 10 percent off. Plus the low end of the market is usually hit the least hard as far as decline in value.
 
Milano said:
True that is the routine. I imagine they do that to avoid time-wasters. So you mentioned in the OP that you have never signed an OTP. So you have told the agent the price you are willing to pay and then what happens next? Have you told them you are willing to sign an offer, and then?
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I'll give you an example. I really liked a townhouse, I saw it a few times. I was quite clear with the agent that I liked the place, it needed some attention but nothing I couldn't manage with a few trips to Builders. She misled me about the levy amount, was listed at R1140 excluding rates and W+E. She was a bit sketchy whenever I asked for the levy statement, I told her I'd like to make an offer and she eventually sent it(I already had the rates, complex financials for some time at this point). Turned out it was actually R2900 excluding everything else. So I offered R70k less than asking because of this and she told me outright that it's too low, didn't send me the OTP and stopped all communication with me.
 
chickenbeef said:
Don't discuss the price beforehand. Ask for the OTP and fill it in with your offer so it's more "concrete".

They aren't obligated to present your offer to the seller unfortunately.

https://www.iol.co.za/personal-finance/agents-can-refuse-to-take-your-offer-to-purchase-1172007

If the owner is at the property when you're viewing it then you could make some small talk and ask them to confirm the price, then lead the conversation towards your offer?
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Where exactly do you get that from?
 
rietrot said:
That's a waste of paper for the negotiation.
If you are negotiating and going back and forth a few times, you can do it verbally or on email first. Then only do a real final offer formally.
Click to expand...

Only a foolish seller would negotiate without things in writing as you are allowing things to get very casual. Seller will lose.. that's the first rule of business. What is this waste of paper nonsense? Seller just countersigns with what he wants.
 
Taariq404 said:
I'll give you an example. I really liked a townhouse, I saw it a few times. I was quite clear with the agent that I liked the place, it needed some attention but nothing I couldn't manage with a few trips to Builders. She misled me about the levy amount, was listed at R1140 excluding rates and W+E. She was a bit sketchy whenever I asked for the levy statement, I told her I'd like to make an offer and she eventually sent it(I already had the rates, complex financials for some time at this point). Turned out it was actually R2900 excluding everything else. So I offered R70k less than asking because of this and she told me outright that it's too low, didn't send me the OTP and stopped all communication with me.
Click to expand...
Was she an EAAB affiliate?
 
Taariq404 said:
I'll give you an example. I really liked a townhouse, I saw it a few times. I was quite clear with the agent that I liked the place, it needed some attention but nothing I couldn't manage with a few trips to Builders. She misled me about the levy amount, was listed at R1140 excluding rates and W+E. She was a bit sketchy whenever I asked for the levy statement, I told her I'd like to make an offer and she eventually sent it(I already had the rates, complex financials for some time at this point). Turned out it was actually R2900 excluding everything else. So I offered R70k less than asking because of this and she told me outright that it's too low, didn't send me the OTP and stopped all communication with me.
Click to expand...

I hear you, not sure why the seller would accept R70k less because the agent either a) false represented the levy b) both of you suffered some type of miscommunication. But a R3k levy sounds high for a sub-million property. Were there special levies in place? (Assuming special levies are still permitted under cmos).
 
Milano said:
I hear you, not sure why the seller would accept R70k less because the agent either a) false represented the levy b) both of you suffered some type of miscommunication. But a R3k levy sounds high for a sub-million property. Were there special levies in place? (Assuming special levies are still permitted under cmos).
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The standard levy was R2100, and then two special levies on top of that:ROFL:. It was the first property I made an offer on.
Jeez thinking about it now, I dodged a bullet there.
 
Taariq404 said:
Good question. I never thought to ask this.

It was a small agency. I have been dealing with a lot of them.

Perhaps I should stick to the larger firms.
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EAAB's code of conduct states that they are obliged to present the offer.
 
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