Offer to purchase question

[Colsuldel]

wow that was quite a long wait.
my PTA registration went like this.

18 May - Lodged
27 May - Prepped
31 May - Registered

and Tuesday the 15th June I received the paperwork from the lawyers
where Tshwane list the property on my name. I still haven't moved in though.

I now need to open the Tshwane municipal account, does anyone have experience with doing it yourself?
looks like there is a office in Centurion.
or should I just pay someone and get it done for me?

 

[RonSwanson]

wow that was quite a long wait.
my PTA registration went like this.

18 May - Lodged
27 May - Prepped
31 May - Registered

and Tuesday the 15th June I received the paperwork from the lawyers
where Tshwane list the property on my name. I still haven't moved in though.

I now need to open the Tshwane municipal account, does anyone have experience with doing it yourself?
looks like there is a office in Centurion.
or should I just pay someone and get it done for me?

With those timelines, the seller clearly had a relationship with the conveyancer

 

[Ghost02]

So piggybacking off this thread - I want to put an OTP in on a property this week.

The asking price is R3.45 the agent made it sound like the lowest I could put in as an offer was R3.2 but a lot of people have recommend I do 90% of asking price which would be R3.1.

What have your recent experiences been with this? The property is in the Monte Vista / Welgelegen area.

 

[Koorsblaar]

I personally think you need to determine what you think the value of the property is.

If you think the asking price is unreasonable, or too high, make an offer in that you think it is worth based on your research.

We know nothing about the property so statements like make an offer of 10 or 20 % less is based on nothing more than a general statement.

Some sellers are unreasonable with their price expectation, or some purposefully put their asking price 10 or 20% above what they want because they know people will simply offer 10% less because that is what everyone else is doing.

Others may be fairly priced and will generate a lot of interest and fetch asking price. The important part is that you need to determine what you think the right price is for you. If it is 10% or 20 % less then that is the offer you can put in. We have very little info to give you the correct answer.

It is a difficult decision though and gets easier the longer you look at houses in the area and get a feel for what they sell for.

 

[Gtx Gaming]

So piggybacking off this thread - I want to put an OTP in on a property this week.

The asking price is R3.45 the agent made it sound like the lowest I could put in as an offer was R3.2 but a lot of people have recommend I do 90% of asking price which would be R3.1.

What have your recent experiences been with this? The property is in the Monte Vista / Welgelegen area.

That area the seller gets to choose the best offer, you will probably have some competition for the property

 

[Ziadhorat]

The asking price is R3.45 the agent made it sound like the lowest I could put in as an offer was R3.2 but a lot of people have recommend I do 90% of asking price which would be R3.1.

I have to agree with all the others above me, only someone with experience in that area can help you. The agent will act in the best interest of the seller, and since commission is % based will try and milk you for the most. Your offer should be based on what you think the property is worth, not what the agent thinks the seller will accept. Also, negotiate, hard, I took an extra 50k off the agreed offer while signing the OTP and it was still accepted. Had I not, I would have wasted that money.

 

[RonSwanson]

So piggybacking off this thread - I want to put an OTP in on a property this week.

The asking price is R3.45 the agent made it sound like the lowest I could put in as an offer was R3.2 but a lot of people have recommend I do 90% of asking price which would be R3.1.

What have your recent experiences been with this? The property is in the Monte Vista / Welgelegen area.

Go lowball (within reason of course). You can often increase the offer, but you can never decrease it.

 

[Ghost02]

Thanks all, going to put in an offer that's slightly cheeky, R3.15.

Reason being I don't have a house to sell and I'm preapproved through my bank so it should be a quick sell for them (I know they don't want to take too long to sell the place because they're moving and have put an OTP subject to this house being sold).

I don't really want to go cheekier than that though because there might be some other interest and the house is going on show but if I lose it then it's not the end of the world because I still have a lot of time on my lease (would have to cancel my current lease and pay penalties to buy this place).

NEXT QUESTION:

Have any of you used a bond originator to apply for all banks that aren't your own? At my own bank (FNB) by private banker said I would get discounts on bond fees if I went direct (obviously they don't want to pay the BO)

 

[123Eish]

Like what all the others have said. Do your research into the property and decide what it is worth to you.

Use legitimate factors such as prices for similar houses in the area, property size, bedrooms, bathrooms, costs to fix it up to a reasonable standard, etc.

What you then have is reasons as to why you have presented a lower offer. This would make your offer more reasonable to the seller. They can atleast understand why you are offering less, which gives them a reason to not immediately disregard offer.

I would take a little less of the amount I want to pay as chances are the seller is going to negotiate.

Also, there are property reports that you can get. I recall that many of the banks offer these reports. Google "Standard Bank Look See". Nedbank offers one but I think you have to be a client and request via their app. Property 24 also has stats available. Careful with these reports as the accuracy is debatable from my past experience.

 

[RonSwanson]

Thanks all, going to put in an offer that's slightly cheeky, R3.15.

Reason being I don't have a house to sell and I'm preapproved through my bank so it should be a quick sell for them (I know they don't want to take too long to sell the place because they're moving and have put an OTP subject to this house being sold).

I don't really want to go cheekier than that though because there might be some other interest and the house is going on show but if I lose it then it's not the end of the world because I still have a lot of time on my lease (would have to cancel my current lease and pay penalties to buy this place).

NEXT QUESTION:

Have any of you used a bond originator to apply for all banks that aren't your own? At my own bank (FNB) by private banker said I would get discounts on bond fees if I went direct (obviously they don't want to pay the BO)

In my experience they are a waste of time. If you want to bargain, rather apply directly at 2-3 financial institutions other than your own bank, and ensure that one of them is SAHL. That way you will get a good mix to decide whether FNB is giving you a good deal or not.

 

[zerocool2009]

So piggybacking off this thread - I want to put an OTP in on a property this week.

The asking price is R3.45 the agent made it sound like the lowest I could put in as an offer was R3.2 but a lot of people have recommend I do 90% of asking price which would be R3.1.

What have your recent experiences been with this? The property is in the Monte Vista / Welgelegen area.

Jump on google! If you buy from someone. All their buying info is available

Go and view, do your sums... and play your cards well

 

[Mawirepower]

NEXT QUESTION:

Have any of you used a bond originator to apply for all banks that aren't your own? At my own bank (FNB) by private banker said I would get discounts on bond fees if I went direct (obviously they don't want to pay the BO)

If the use of a BO is included in the OTP, just make sure you make it known the Banks you want to try on your own. Nothing to lose in using the BO with other banks.

 

[Gozado]

If the use of a BO is included in the OTP, just make sure you make it known the Banks you want to try on your own. Nothing to lose in using the BO with other banks.

What is a clause about a Bond Originator doing in an OTP?
Why would anyone making an offer, ever submit themselves to a specification that the seller (or more likely the agent) is making about where the buyser should get their financing?

 

[Big-Mac]

What is a clause about a Bond Originator doing in an OTP?
Why would anyone making an offer, ever submit themselves to a specification that the seller (or more likely the agent) is making about where the buyser should get their financing?

It's usually put there by developers if you buying a new development, never seen it anywhere else besides in that situation

 

[Gozado]

Even then, why?

 

[Speedster]

What is a clause about a Bond Originator doing in an OTP?
Why would anyone making an offer, ever submit themselves to a specification that the seller (or more likely the agent) is making about where the buyser should get their financing?

The house I bought recently (Feb) had an BO clause in the OTP. I didn't even think twice about scratching out that clause, and agent didn't blink when I did.

Personally though, I'm a big fan of BO. Maybe that's because I've found a great one who's gotten me great rates on 3 different properties over the years.

 

[Gozado]

I didn't mean it pro or contra Bond Originator. It just seems very odd that a buyer would ever, for one moment, submit to letting the agent or the seller dictate to them how they arrange their finances. Good for you, for scratching out that clause!

 

[zerocool2009]

If you buy off plan, the builder is usually also specifying the attorneys!

But related to a bank (if you bond it), its your choice

 

[Ghost02]

I also had a clause where the seller could apply at a BO for me but I scratched that out with the agent.

 

[marysms]

I also had a clause where the seller could apply at a BO for me but I scratched that out with the agent.

Remember to put the shortest OTP expiry date, as you said there might be other potential offers, the longer your OTP validity the hight the chance that the Agents might use it to fish for other offers.

Also when it comes to offer price, the time on the market for the property might be critical as well. Search for the last sold price on Property24, that can guide you in terms of how low the sellers might go. e.g if they bought the property say in 2016 for 3.2m and they are now selling it for 3.45m, chances are they will never go below what they paid 5 years ago.

Do your research, as a FNB client on the app go to nav-igate life select nav>> HOME then Property Valuation, to get a free property report. That report is the same report that you get charged by PropIQ and others, it will give you some insights that might be useful when deciding on an offer amount