Offer to purchase question

[The_Mowgs]

What % do agents take when they sell a property?

We told our agent she will get 4% and she was fine with it.

 

[RedViking]

Has anyone done a private sale? What all is there to consider when an agent is not involved? So let's say property is R1 000 000 and I put aside R50 000 for fees and go through a bond originator.

 

[The_Mowgs]

Has anyone done a private sale? What all is there to consider when an agent is not involved? So let's say property is R1 000 000 and I put aside R50 000 for fees and go through a bond originator.

I think on Private Property they explain step by step how to sell privately. It is really not such a big task to get people to come and view your property. I wanted to do it but liefie requested less stress and put anal on the table so went with an agent.

 

[RedViking]

I think on Private Property they explain step by step how to sell privately. It is really not such a big task to get people to come and view your property. I wanted to do it but liefie requested less stress and put anal on the table so went with an agent.

Yeah but I am on the other side. I want to buy.

 

[The_Mowgs]

Yeah but I am on the other side. I want to buy.

Just ensure the OTP is air tight, add addendums where you feel necessary and take it step by step, lots of knowledgeable people here on the forum that can assist with each step. Its not really an issue or a difficult task.

 

[EMAM]

What % do agents take when they sell a property?

Negotiate that when they bring a solid offer. As a seller, I've never set a commission beforehand. I've told them what I wanted out and they've had to, more often than not, cut their commission to make the deal work.

 

[Mike Hoxbig]

Yeah but I am on the other side. I want to buy.

You just need an OTP and property condition report where you declare any known defects. Ask the attorney who you nominate as your transferring attorney to assist you with this.

If you're buying from a private seller, this would sit with them to organise...

 

[bokka1]

Yeah but I am on the other side. I want to buy.

Once you have a willing seller and property then contact a conveyancer to assist with the contract.

99% of lawyers won't charge you anything to draft the contract if they are the transferring attorney.

The most important thing is to contact a conveyancing attorney as not all attorneys may do property transfers.

 

[RedViking]

What is a good guideline for what one can afford and allowing for some future crisis events?

Let's put it this way, if you could do it again, what would you do differently?

 

[Speedster]

Good question. The way I view it mortgage costs are a stationary series (i.e. basically constant over the period of loan bar limited interest rate fluctuations) while income increases exponentially (say 5% annually). I'd suggest you buy at your current max (without overpaying for the specific property), tighten the belt for the first couple of years and then there should be some breathing space after.

 

[zerocool2009]

My view or motto :
1) make sure you have cashed saved for 1 year if the poppo hits the fan
2) Lets say interest rates goes up by 5% as Speeder saying, can you still afford it ? (including all extra costs)
3) My lesson Iearned related to house buying, wish I could bought my first house at 21 years ! Mine was at 24

 

[bokka1]

Nobody is going to buy a house if they have to have 12 months of bond repayments in their savings account.

As Speedster says, buy to your max now, the interest rate is not going to change dramatically in the foreseeable future. Your increase in rent will be more than the increase in bond payments and now you will have an asset that is increasing in value.

 

[zerocool2009]

Nobody is going to buy a house if they have to have 12 months of bond repayments in their savings account.

As Speedster says, buy to your max now, the interest rate is not going to change dramatically in the foreseeable future. Your increase in rent will be more than the increase in bond payments and now you will have an asset that is increasing in value.

Ok, my view is totally different.

Buy to the max now, and lose your job (and then we see how good that advise was to buy at the max) with no reserves. I see daily how people struggle (owners and tenants). Once in the death trap of debt (once lawyers get hold of you, they are not catrolling you in quickly, they are milking you like a cow.

My best advice I could give anyone buying a house, from a small amount to huge, make sure you pay the fees in cash !

 

[Gtx Gaming]

My emails below and attached notification bears reference.



Please note that this transaction was lodged in the Deeds Office today.



And the payment of the water and electrical consumer deposits now becomes payable.

Yay stuff is moving along now!

 

[The_Mowgs]

My emails below and attached notification bears reference.



Please note that this transaction was lodged in the Deeds Office today.



And the payment of the water and electrical consumer deposits now becomes payable.

Yay stuff is moving along now!

Nice. We are moving tomorrow, busy packing now.

 

[Mike Hoxbig]

Nice. We are moving tomorrow, busy packing now.

Does black pepper in your beer help with the packing?

 

[The_Mowgs]

Does black pepper in your beer help with the packing?

I boof it for immediate energy

 

[RedViking]

I couldn't sleep last night and started reading the thread from the start. Only got to about page 50ish. Even though I have read everything here before, I now read it from a different perspective and paying better attention to things. Some stuff I haven't figured out yet, or might have missed due to midnight reading....

1) OTP
2) Lawyer
3) Bond Originator
4) Property Value


1) You guys keep mentioning that you made sure all the important things are in the OTP and that you sometimes removed or added a clause. Where do you get this information from? Knowing nothing about an OTP, is there a list or guideline you guys use what should be in there? How am I supposed to know what should or should not all be in there, besides the bits and pieces I pick up in the thread here and there and how to add the correct wording?

Please can someone give me more knowledge or guidance on this, even a PM is fine.

2) For a private sale. Where do I find a lawyer or who do I approach? How do I know they are worth their $alt.

I have very very very bad experience with agents and lawyers. They are the two services in this world I despise and has made my life hell. @bokka1 seems legit and awesome though from reading the posts.

3) How do you approach or choose a bond originator. Someone has suggest a bond originator to me that is in Durban. He seemed very happy with her. Not sure if she is with a company though but will find out. Think I need to start with getting pre-approval.

4) How do one find out what the market values are for the properties in an area. Do you have somewhere you check besides the agents prices on private property and 24? If the property needs work worth 150-200 000. Is it common for agents to still sell it at the value they think it should be and not subtract that? Won't this push the property above market value once you start the repairs?

I have a 100 questions as I will be the first one in my family to consider buying property or be in a position to buy something since we lost our home when I was in primary school and there is no-one to guide me or an example I can turn to for advice.

 

[RonSwanson]

Does black pepper in your beer help with the packing?

Only if it's The Sowetan.

 

[RedViking]

Ok, my view is totally different.

Buy to the max now, and lose your job (and then we see how good that advise was to buy at the max) with no reserves. I see daily how people struggle (owners and tenants). Once in the death trap of debt (once lawyers get hold of you, they are not catrolling you in quickly, they are milking you like a cow.

My best advice I could give anyone buying a house, from a small amount to huge, make sure you pay the fees in cash !

I get the idea bokka is not referring to max out your bank account. But buy the max you can afford (whether it is 10%/20% or 30% of your income) , instead of waiting another year or two.