Offer to purchase question

RedViking said:
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.
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I can unfortunately not help that much today but these are the correct questions, try to not become overwhelmed as it can happen very quickly.

OTP. You can add in there whatever you want and then it becomes a negotiation. If you state the house needs to be painted then you specify with what type of paint etc. The OTP is VERY IMPORTANT. You need to specify things such as APPROVED building plans. Who will be responsible for which issues etc.

Property prices. Look what others have sold for, look at what you want to buy and compare them against each other. If theres lots of maintenance you tell the owner that you will submit a OTP with a lower offer because of x y and z. You can find property prices on Private Property and Proper24 etc.

Bond originator. Pick one, call them. They will send a set of documents which you complete, send required documents back and thats it, they do the rest, you dont even pay them.

Attorneys I cant really help with sorry.

Dont stress bro, we've got your back. Yes its a big decision but as I said, the people here will assist you 100%. Dont be afraid when viewing a property to open all taps, cupboards, drawers etc.
 
RedViking said:
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.
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1) PM me, I have a 200 item check list to check for things when buying a property.
2) I can help you with that if you are in Gauteng (and organize discount (on transfer costs))
3) Apply directly (not going through a MO), its a bit more work, but if you want to sit back and let someone do your work, approach a MO by all means.
4) You can google a street, and property24 gives the sell (price) and registration date for every single property.

Please ask .... that is why we are here to help (or advise) ... and learn from each other's mistakes buying property

My honest advice to start with : Sit with your salary/income. Do the sums. Look how much you can buy for 30% of your nett income ! That is how the banks qualify client.
 
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zerocool2009 said:
1) PM me, I have a 200 item check list to check for things when buying a property.
2) I can help you with that if you are in Gauteng (and organize discount (on transfer costs))
3) Apply directly (not going through a MO), its a bit more work, but if you want to sit back and let someone do your work, approach a MO by all means.
4) You can google a street, and property24 gives the sell (price) and registration date for every single property.

Please ask .... that is why we are here to help (or advise) ... and learn from each other's mistakes buying property

My honest advice to start with : Sit with your salary/income. Do the sums. Look how much you can buy for 30% of your nett income ! That is how the banks qualify client.
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I will give you a shout soon. Thanks so much!
 
@zerocool2009 you are awesome.

So this is the complex/place the owner wants R1 050 000 (single garage, nice size garden) and the agent wants R1,2 - 1,3 for.

Note the place will at least need 100-150 000, more realistically R200 000 worth of work to be done. The properties going for over million has 2 garages and great condition, new kitchens, tiling etc. on the isnside. Some have pools.

1629457754554.png 1629457779302.png
 
RedViking said:
@zerocool2009 you are awesome.

So this is the complex/place the owner wants R1 050 000 (single garage, nice size garden) and the agent wants R1,2 - 1,3 for.

Note the place will at least need 100-150 000, more realistically R200 000 worth of work to be done. The properties going for over million has 2 garages and great condition, new kitchens, tiling etc. on the isnside. Some have pools.

View attachment 1130780 View attachment 1130782
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Glad I could help

Do your homework, and make an offer directly to the owner! You know the owner, so its not a total stranger either!

So next step, your own homework as in what you qualify for
 
RedViking said:
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.
Click to expand...
If I am not mistaken the seller cannot privately sell the property while there is a contract in place with an estate agent. There's usually a period of time that has to pass after seller-agent contract had expired for the seller to sell again.

Such that if any buyer approaches the seller. the agent would claim it is because of their doing (marketing)
 
Tman543 said:
If I am not mistaken the seller cannot privately sell the property while there is a contract in place with an estate agent. There's usually a period of time that has to pass after seller-agent contract had expired for the seller to sell again.

Such that if any buyer approaches the seller. the agent would claim it is because of their doing (marketing)
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In our current situation, There is no estate agent yet. We have first option to buy and then they go to estate agent.
 
I've done an Absa online pre approval with a deposit of R50 000. I've also added in all the important expenses so I get a true estimate. And yes I am aware it is just an estimate and not guaranteed.

1629488233401.png

1629487542266.png

I do however hope I can get less than 7.1% as I applied for a loan less than what I think I can technically afford on paper, as well as haven't considered if I include my wife in the deal (married out of community). She also has a degree and registered as a professional. I would prefer not to do it though as when my dad got sequestrated, my mom also got blacklisted and I would not want to do that to my wife. Also I work for myself so realise that can be challenging.

I have also taken an average of my income over 3 months as it is dependant on the exchange rate. There is a chance I might also not have the deposit, depending how much I can save up by end of year and other fees.

But yes, so many IF's and Where's and What's next.


Then there is also the stupid idea in my head to want to build something small. We are both designers, which is a pain when looking at properties. The only thing stopping me is knowing that I will still need to have a place to stay in the meantime.
 
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RedViking said:
I've done an Absa online pre approval with a deposit of R50 000. I've also added in all the important expenses so I get a true estimate. And yes I am aware it is just an estimate and not guaranteed.

View attachment 1131076

View attachment 1131046

I do however hope I can get less than 7% as I applied for a loan less than what I think I can technically afford on paper, as well as haven't considered if I include my wife in the deal (married out of community). She also has a degree and registered as a professional. I would prefer not to do it though as when my dad got sequestrated, my mom also got blacklisted and I would not want to do that to my wife. Also I work for myself so realise that can be challenging.

I have also taken an average of my income over 3 months as it is dependant on the exchange rate. There is a chance I might also not have the deposit, depending how much I can save up by end of year and other fees.

But yes, so many IF's and Where's and What's next.


Then there is also the stupid idea in my head to want to build something small. We are both designers, which is a pain when looking at properties.
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Whats next? Well, you have now a figure roughly (pre-approved). If keen on hearing what your landlord would want, tell her you might be interested. And ask what is her price.

Take note, write in bold in the otp (if it comes to that stage), that the offer is subject to an approved bond. That covers you if you make an offer with no bank that would want to help.

So next, start communicating if you are interested, if the numbers are in your range of affordability
 
zerocool2009 said:
Whats next? Well, you have now a figure roughly (pre-approved). If keen on hearing what your landlord would want, tell her you might be interested. And ask what is her price.

Take note, write in bold in the otp (if it comes to that stage), that the offer is subject to an approved bond. That covers you if you make an offer with no bank that would want to help.

So next, start communicating if you are interested, if the numbers are in your range of affordability
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Well... I went for a drive today through every street in our suburb... slowly... and I am not so frustrated anymore and set on wanting the property I am currently in. I know the price now and I don't feel it is worth what she wants. We will give it a couple of days before we will chat to her anyways. But I am sure if we patient in the next few months or a year we are going to find something that will have much better value and worth investing into. IF she is willing to come down substantially with the price, which I doubt, it is still on the table... maybe.
 
RedViking said:
Well... I went for a drive today through every street in our suburb... slowly... and I am not so frustrated anymore and set on wanting the property I am currently in. I know the price now and I don't feel it is worth what she wants. We will give it a couple of days before we will chat to her anyways. But I am sure if we patient in the next few months or a year we are going to find something that will have much better value and worth investing into. IF she is willing to come down substantially with the price, which I doubt, it is still on the table... maybe.
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In that case. You know a number roughly! Start looking whats to offer in that range...

Happy house hunting
 
Can someone clarify this for me or what leg I have to stand on. I do not want other people to invade my privacy while we are still renting here. The wording is not that well done or my English fails me.

1629489174886.png

Does this mean she can only start having people come into the house 2 months before our lease expire?

It says 2 months for the "affix and exhibit" , but then it also says "during currency of this lease"
 
RedViking said:
Can someone clarify this for me or what leg I have to stand on. I do not want other people to invade my privacy while we are still renting here. The wording is not that well done or my English fails me.

View attachment 1131088

Does this mean she can only start having people come into the house 2 months before our lease expire?

It says 2 months for the "affix and exhibit" , but then it also says "during currency of this lease"
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Yea. They do need to find a replacement tenant when you leave. Unless you willingly to pay when the unit is empty after you leave.
 
beefymoocow said:
Yea. They do need to find a replacement tenant when you leave. Unless you willingly to pay when the unit is empty after you leave.
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What I want to know is , she is now wanting to put the property in the market. Does this means anyone can just come in and out now anytime, or only from 2 months prior to the end of our lease. I am not going anywhere, I am only going somewhere if she puts the property in the market before our lease has ended. That is on her then. I do not want people to invade my privacy.
 
RedViking said:
What I want to know is , she is now wanting to put the property in the market. Does this means anyone can just come in and out now anytime, or only from 2 months prior to the end of our lease. I am not going anywhere, I am only going somewhere if she puts the property in the market before out lease has ended. That is on here then. I do not want people to invade my privacy.
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Yea. You have to but it has to be reasonable. Ie give you enough time and I guess frequency as well. You can agree with the landlord maybe 3-4 viewings a month etc.
 
RedViking said:
No that is not what I am asking. I am asking if that clause says she can only do it from 2 months before our lease expires or anytime.
View attachment 1131090
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Its a bit ambiguously worded but reasonable interpretation is she can only advertise and allow viewing 2 months prior to lease.

Viewing can be at any time but reasonable times.

BUT because so weirdly worded, could be argued advertise for 2 months at any time. Hardly likely that was the intention BUT could be an interpretation. But chat and be reasonable.
 
Saba'a said:
Its a bit ambiguously worded but reasonable interpretation is she can only advertise and allow viewing 2 months prior to lease.

Viewing can be at any time but reasonable times.

BUT because so weirdly worded, could be argued advertise for 2 months at any time. Hardly likely that was the intention BUT could be an interpretation. But chat and be reasonable.
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That is what the contract states, yes. The reality is very different. Firstly, all access for viewing needs to be reasonable, so that means at a reasonable time and frequency. It is not uncommon for this to be once or twice per week max, and at a reasonable time (most tenants prefer late afternoon/early evening, none like mornings).
Then there are further conditions which the lessee can raise, such as giving reasonable notice (24 hours?) as well as insisting that the lessor accompany those viewing the property. It would be unreasonable to expect the lessee to just allow people off the street into their homes, what if they come in significant numbers (5 or 6 at a time), who is going to check that they are not pilfering?
In reality, the lessor is the one who is at a disadvantage here, because a spiteful lessee can ensure that the place looks untidy, smells bad, unwashed dishes piled up, unflushed toilets, unmade beds, filthy floors etc. even when reasonable notice is given and access is reasonably granted. Potential lessees will often pose interview questions to the current lessee about a number of things, and the responses to these questions are often crucial to seal a deal.

A smart lessor would negotiate a small fee with the current lessee to act as their agent, and to pay a small commission if the new guy gets signed up. This will ensure that he gets the current lessee's co-operation in terms of access, and that the place ought to be in a reasonable state. It's no guarantee because some lessees live like filthy pigs regardless, but it works mostly.
 
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