Offer to purchase question

[RonSwanson]

Thanks, I have done this and surprisingly enough, the listed price is around selling prices in the area. I believe he didn’t overprice it as he’s a bit desperate to sell.

"Selling prices" are asking prices at what properties are initially advertised for. It definitely does not mean that the properties are sold at that price. Many of them include an unhealthy dose of seller sentiment, plus a large dollop of agent's optimism -- do you think they got an exclusive mandate by lowballing the valuation?

It's far more accurate to get a true feel of the area from the prices that properties in the area have actually sold for, historically. Another way is an independent report, such as Lightstone (a good agent will have done such an evaluation upfront, ask for it). If you spend every night doing your research, and viewing lots of properties, you yourself will soon become an area expert, and this is exactly where you want to be, in order to distinguish between the realisticly priced genuine sellers (which are about 1-5%) and the wannabees.

 

[RonSwanson]

I will keep this in mind, thank you. My mind racing thinking that I’d be losing out, I just need to emotionally detach from the process.

Rookie mistake #1 is to become emotionally attached to any property that you view. Mistake #2 is to reveal it to the agent (or even your spouse).
Keep a poker face at all times, and even if your heart is bleeding for an awesome pad, just before you walk out, casually ask the agent what properties they are going to show you the next day. When they tell you, say "Oops, I forgot, I can't make tomorrow, I am viewing another great place around the corner". Keep them guessing about what's on your shortlist, never reveal it. If they ask you what you think about a place, a really great place, then just say "It's OK". Never ever reveal that this one is the only place that you like, or that you don't have a reasonable list of alternatives.

 

[aqua02]

The house I'm currently registering was listed for R1 400 000. I offered R1 200 000 and we then settled at R1 250 000. So, always try your luck!

Thank you for this, I will definitely offer lower than I had planned and work up from there as the seller may ask for more. This will put me in a better position than going in at an amount I wouldn’t feel comfortable increasing.

 

[aqua02]

@RonSwanson wow you’ve given me so much valuable information, I have to admit though that I’ve probably played my cards too open. The agent has a pretty good idea of how much I like the place, hence the second viewing. I believe that made her open up a bit more regarding the owner’s desperate position though.
I’ll try the poker face on the second viewing, I’ve scheduled it for Friday.

 

[Brawler]

I only offered 3.5% less but I wanted it and was tired of waiting years for the right house. I've viewed about 20 houses and this was only the third that I was willing to put an offer on. The other two sold on the first day, cash offers apparently. CT is still a shhit show in the 3 bed <R3m mark.

 

[RonSwanson]

@RonSwanson wow you’ve given me so much valuable information, I have to admit though that I’ve probably played my cards too open. The agent has a pretty good idea of how much I like the place, hence the second viewing. I believe that made her open up a bit more regarding the owner’s desperate position though.
I’ll try the poker face on the second viewing, I’ve scheduled it for Friday.

Maybe better to call and request the Agent to postpone it for an hour, because you are "doing another second viewing on another place" and "the owner has limited time".

 

[Solitude]

I only offered 3.5% less but I wanted it and was tired of waiting years for the right house. I've viewed about 20 houses and this was only the third that I was willing to put an offer on. The other two sold on the first day, cash offers apparently. CT is still a shhit show in the 3 bed <R3m mark.

About the same for me. I first offered 5% less but we ended up with about 4% less.

*edit*

We had the same problem here in Joburg. Two houses that we really wanted were bought by cash buyers on the first day they were shown. One by someone overseas who didn't even see the house. Other houses always had one or two deal breakers.

So finally found a place and didn't want to lose it.

 

[Speedster]

@RonSwanson wow you’ve given me so much valuable information, I have to admit though that I’ve probably played my cards too open. The agent has a pretty good idea of how much I like the place, hence the second viewing. I believe that made her open up a bit more regarding the owner’s desperate position though.
I’ll try the poker face on the second viewing, I’ve scheduled it for Friday.

Second viewing you can highlight issues you pick up more. Look out for things like water damage, peeling paint, rusty gutters or anything else that's not 100% the way you'd like it. Note these and point out to agent, this will help mitigate your initial optimism in their books

 

[Brawler]

About the same for me. I first offered 5% less but we ended up with about 4% less.

*edit*

We had the same problem here in Joburg. Two houses that we really wanted were bought by cash buyers on the first day they were shown. One by someone overseas who didn't even see the house. Other houses always had one or two deal breakers.

So finally found a place and didn't want to lose it.

Eish its scary man. People telling you left right and centre low ball them 15% less but when you go view a house they tell you it is sold on day 1?
They ain't accepting less and the 'agents' know this so are pushing prices sky-high in nice areas.
You also get fokkol time to check anything. Maybe 10-15 mins then you must decide. Luckily I had my uncle with me who knows his stuff otherwise I could have been ripped.
Happy it is done...


This is the area I bought in. I thought people losing jobs and are in trouble?



CT is crazy but from what I've seen it's worse in any other nice city worldwide. There you must just forget about buying a proper house.

 

[VBot]

Hi all,

Can you make a lower offer on a new development? The Balwin types of apartments or do they just outright refuse to go below the prices they show?

Ta

 

[Gtx Gaming]

Hi all,

Can you make a lower offer on a new development? The Balwin types of apartments or do they just outright refuse to go below the prices they show?

Ta

I did not try neg as they offered extra like 2000 bucks a month rental assistance for 12 months if you buy it to rent out.

 

[TedLasso]

Hi all,

Can you make a lower offer on a new development? The Balwin types of apartments or do they just outright refuse to go below the prices they show?

Ta

Everything is negotiable. Recall a new development being built next to my brother's block by same developers and and went to check it out about 5 years ago. They did their spiel, and I asked what the discount was . They knocked 30k immediately and I said it's a good start. Also had negotiated not installing any Smeg appliances (as my brother's place had them and they were really crap) ...

Also did something similar at a new development near Sandton recently. They were willing to negotiate and had also got to about 60k off before I pulled the plug on any further investment in SA after the looting crap.


So ask - what's the worse they gonna do - say no?

 

[Gtx Gaming]

Went to lawyers today signed bond docs and transfer docs, and they slapped me with a nice bill to pay. But atleast the process is moving along

 

[Colsuldel]

Got a "consultant" to do my Tshwane registration for electrical and tax registration on the house.

Tshwane account registration happened on the 23rd of June, upto now there is no water and lights account that I can add on
my profile.
Just read now on the Tshwane FAQ it can take 6 - 8 weeks for the account to be active

Anyone on here who can give insight on how long they waited for their account from Tshwane and other municipalities?

 

[Mawirepower]

Went to lawyers today signed bond docs and transfer docs, and they slapped me with a nice bill to pay. But atleast the process is moving along

Nice, hope you didn't forget the discount!

 

[prod]

Just got news that they are lodging on Wednesday...after 8months of the craziest shite you can imagine all I have to say is: I'll believe it when I see it

 

[APoc184]

Just got news that they are lodging on Wednesday...after 8months of the craziest shite you can imagine all I have to say is: I'll believe it when I see it

Lolz... Congrats.

Been there.

 

[RedViking]

Got notified today by our landlady the place we have been renting for the last 7 years they want to sell. She was an awesome landlady and our rent was pretty awesome, specially because I have a massive family financial burden to carry and excessive monthly legal fees. Will be lucky if we find something similar to it for even 3 or 4K more.

So now..... she is giving us 2 weeks to decide if we want to buy here (private) before she get an agent involved.

I am sure I can ask her for a bit more time to decide.

But so much to consider.

1. Will I get a loan. (I have been working online and at home since school. Never got a pay slip. Don't have debt and just a credit card. Everything else including car was cash. I do pay provisional tax.)

2. Will MAYBE (if I get a loan) be able to afford it at our current interest (Assuming 7% and not more) and will probably pay about 3K more than my rent. BUT, if the interest rate goes up, or my business ventures fail, I'll be screwed.

3. I am also not sure if I want to buy a permanent property in this location. The riots got me very scared and I was pinned down, couldn't even go out our complex gate. Not sure how this will effect the property value over time a well. Don't think it is in the best location as it is on the outskirts of the suburb.

I love the house itself and the yard is perfect for us. As a self proclaimed architectural designer I have had many awesome ideas to improve it and what I want to do. I will also do everything myself as I am good with carpentry.

4. The complex itself got louder over time and I don't think place is well maintained and maybe even tight on funds. Unit also has moisture issues etc.

5. But I have been living here for 7 years, and if it wasn't mine and paying rent I can live here for another 7 years, although I have lately been thinking of moving to the Midlands and retire there at 30. Lol, okay, assuming my business venture doesn't fail and my business partners do not screw me over.

 

[zerocool2009]

Got notified today by our landlady the place we have been renting for the last 7 years they want to sell. She was an awesome landlady and our rent was pretty awesome, specially because I have a massive family financial burden to carry and excessive monthly legal fees. Will be lucky if we find something similar to it for even 3 or 4K more.

So now..... she is giving us 2 weeks to decide if we want to buy here (private) before she get an agent involved.

I am sure I can ask her for a bit more time to decide.

But so much to consider.

1. Will I get a loan. (I have been working online and at home since school. Never got a pay slip. Don't have debt and just a credit card. Everything else including car was cash. I do pay provisional tax.)

2. Will MAYBE (if I get a loan) be able to afford it at our current interest (Assuming 7% and not more) and will probably pay about 3K more than my rent. BUT, if the interest rate goes up, or my business ventures fail, I'll be screwed.

3. I am also not sure if I want to buy a permanent property in this location. The riots got me very scared and I was pinned down, couldn't even go out our complex gate. Not sure how this will effect the property value over time a well. Don't think it is in the best location as it is on the outskirts of the suburb.

I love the house itself and the yard is perfect for us. As a self proclaimed architectural designer I have had many awesome ideas to improve it and what I want to do. I will also do everything myself as I am good with carpentry.

4. The complex itself got louder over time and I don't think place is well maintained and maybe even tight on funds. Unit also has moisture issues etc.

5. But I have been living here for 7 years, and if it wasn't mine and paying rent I can live here for another 7 years, although I have lately been thinking of moving to the Midlands and retire there at 30. Lol, okay, assuming my business venture doesn't fail and my business partners do not screw me over.

You gonna have issues proofing your income with no payslip! Banks are harsh on that point. They see you as a big risk.

Even with no credit, as in scoring (its a double whammy)

 

[RedViking]

You gonna have issues proofing your income with no payslip! Banks are harsh on that point. They see you as a big risk.

Even with no credit, as in scoring (its a double whammy)

But my income is pretty consistent. If not increasing slightly every month. But I do understand what you are saying. And I do realise this is probably going to be an issue.




What is the best way to check how much they will loan me without proceeding with a loan immediately?