Offer to purchase question

[Skywalker786]

Luckily I am indirectly in the construction industry and many of my clients specialise in gas and solar installations. One or two of them do owe me some favours over the years. So I reckon I can get away with the installation at a pretty good price.

Had small talk with one of them at the office last week and he says he can easily do a full cage with two-bottle installation for about R1.5k. I have no idea if that is a good price or the average price. Will gather all that info and prices in coming weeks/month.

Almost scared to admit that I am an estate agent. Just saw all your posts today. R1,5 is an excellent price.

 

[APoc184]

Almost scared to admit that I am an estate agent. Just saw all your posts today. R1,5 is an excellent price.

Haha... Look, we had a bad run in with the first one.

But apart from upping his communication skills a bit higher than single-worded whatsapp replies, our current agent has been superb and nothing close to the sharks that most people believe they are.

So yes, there are gems in the rough. Hopefully you are one too.

We also believe the property to be a great buy. Checked recently sold properties in the same street and they all sold for R400 - R800k more in the past 3 years.

 

[APoc184]

Many years ago my preferred bank (at that time) was convinced to give me a better rate after FNB offered me a better rate (and I had no existing account at FNB so they were trying to get my business I guess). The bond originator convinced my preferred bank to match it, so yes, ask your bond originator by all means to push your preferred bank. It all depends on how hard-up your preferred bank is to keep your business.

Thanks.

Then we will certainly ask the bond originator to negotiate for us if FNB does not give us the best deal from the get go.

 

[Skywalker786]

Thank you. And I can see no reason, at all, why they would not. Maybe I have a blind spot, but I just don't understand why any buyer or seller would wait for the agent to choose how the agent will dribble the information. Unless they don't want to be involved and are happy to just lean back an see whether they'll get the property, somehow, some day.

There is no law to prohibit you dealing or communicating with the seller directly. I prefer my buyers dealing with me directly to prevent a case of "telephone telephone". This would be the easiest case for confusion. If you want to deal directly with a buyer, your best option is to find a property on Private Property, but nowadays there are 90% more agents advertising on PP rather than private sellers. PLUS Prop 24 bought over Private Prop 2 years ago

 

[Skywalker786]

Usually it's the seller who doesn't want to deal direct with the buyer. I think it's a psychological thing. The get attached to their house, no matter what the reason for selling. They know and to a degree trust the agent, whereas the buyer is taking their baby.

Also, with that in mind, the agent should know their seller well enough to sell them on the offer. Remember, no matter what the amount is, the seller always thinks their precious baby is worth more. Very often an agent needs to close the deal on the seller.

(Full disclosure, I was an agent for a heartbeat a lifetime ago)

99% of my sellers refuse to deal directly with the buyers. 99% of them even refuse to do a hand over of keys with buyers

 

[Skywalker786]

Snakes

Hi agents work on commission only. How would you feel, either as an agent/seller/buyer if working on a transaction for 2 months and bond approved etc and buyer or seller walks away. And yes that does happen

 

[Skywalker786]

Wow, in that case I will definitely call in a favour when the time comes.

Make sure that it is a qualified installer, whilst DIY may work you will need a compliance cert when you sell.

 

[Skywalker786]

Thanks.

Then we will certainly ask the bond originator to negotiate for us if FNB does not give us the best deal from the get go.

Thats why you use a bond originator. More than often banks have a different appetite for risk and a competitor bank might offer you a better rate than your existing bank. if required the originator will go back to your own bank to match or better the rate.

 

[Skywalker786]

For sure! Can't wait to switch over to a proper gas stove.

House already has a little 2 plate gas hob installed. But I am going to buy a proper 5 burner Gas/Electric Stove before we move in and get it installed immediately.

I am glad you are going with 90cm gas stove

 

[APoc184]

Just an update.

Received 100% approval from two banks and awaiting one last one today before making the final call.

Our own bank FNB actually came back with the best rate so far (prime + 0.15%). Standard Bank was way more (prime + 1%). So unless ABSA comes back with a killer deal later today (which is unlikely) we will be accepting the FNB quote.

Long weekend so not much will happen until later in next week.

 

[Speedster]

Just an update.

Received 100% approval from two banks and awaiting one last one today before making the final call.

Our own bank FNB actually came back with the best rate so far (prime + 0.15%). Standard Bank was way more (prime + 1%). So unless ABSA comes back with a killer deal later today (which is unlikely) we will be accepting the FNB quote.

Long weekend so not much will happen until later in next week.

So glad things are progressing well for you

 

[APoc184]

So glad things are progressing well for you

Thanks.

In terms of the compulsory bond insurance and the property insurance.

Any tips you guys can give there?
As I understand the bond protection will have to be through the back. But property insurance I can do via my broker?

 

[Creag]

But property insurance I can do via my broker?

If is a free-standing property, i.e. not townhouse complex, then yes, through your broker is best.

 

[Speedster]

Thanks.

In terms of the compulsory bond insurance and the property insurance.

Any tips you guys can give there?
As I understand the bond protection will have to be through the back. But property insurance I can do via my broker?

My bond is with FNB and insurance with MiWay. The insurance wil give you a letter you pass on to the bank

 

[Steamy Tom]

My bond is with FNB and insurance with MiWay. The insurance wil give you a letter you pass on to the bank

yeah they will actually seed (sp) the beneficiary as the bank

 

[dlevine]

yeah they will actually seed (sp) the beneficiary as the bank

They will note the banks interest in the property.

 

[Neuk_]

Just an update.

Received 100% approval from two banks and awaiting one last one today before making the final call.

Our own bank FNB actually came back with the best rate so far (prime + 0.15%). Standard Bank was way more (prime + 1%). So unless ABSA comes back with a killer deal later today (which is unlikely) we will be accepting the FNB quote.

Long weekend so not much will happen until later in next week.

Good luck!

We had some strange experiences when shopping around for a bond in 2017 with ABSA coming out on top with Prime less 1.05 PP. Standard Bank initially offered Prime less 1.02 PP after ABSA's initial offer but wouldn't budge to even match ABSA, despite me being an existing client with everything except for my car finance with them. We also went through the arduous process of applying with Investec but they only offered Prime less 0.75 PP and I would have to move to them for my banking needs. We went with ABSA in the end, purely due to the rate offered and they offered an Access Bond from the start, I also went with ABSA for my car finance as no-one else even came close to matching their offer.

 

[Fcon_Vpro]

Just an update.

Received 100% approval from two banks and awaiting one last one today before making the final call.

Our own bank FNB actually came back with the best rate so far (prime + 0.15%). Standard Bank was way more (prime + 1%). So unless ABSA comes back with a killer deal later today (which is unlikely) we will be accepting the FNB quote.

Long weekend so not much will happen until later in next week.

Check the FNB quote under I think special conditions(item 5 I think). If you an fnb customer and the debit order comes from the FNB account, they give you extra 0.25% off.

Did you apply for 100% bond?

 

[APoc184]

Check the FNB quote under I think special conditions(item 5 I think). If you an fnb customer and the debit order comes from the FNB account, they give you extra 0.25% off.

Did you apply for 100% bond?

Thanks. I did see the Main FNB Client discount of 0.25% mentioned in the quote, which is why we think ABSA will have to come with a killer rate to make us consider.

Yes we applied for 100%. Agent recommended we do 105% to cover attorney fees. But we had that saved up for a while now. And according to bond originator, asking for more than 100% will raise the risk according to the bank and most possibly affect interest rate.

 

[SauRoNZA]

Next step in progress...

All documents submitted to bond originator for approval from banks. Says we can expect an answer as soon as tomorrow.

Hoping our own bank FNB comes back with the best rate. Purely for the eBucks benefits.

Is it worth it to try and ask bond originator to fight for a better rate at our preferred bank if we don't get it in the first options? Or is it not really possible? What can we even do/say that will make them give a better deal?

Never take the first offer.

Always push back.

And FNB will almost certainly match it not beat.

It’s very possible. The very fact that you simply resist gets you a better deal since 99.99% think exactly like you do and just accept the first offer gratefully.