Well it is possible … we’ve seen cases where owners ARE allowing inspections before OTPs are signed, so it feels like a no-brainer for me to do it this way if I have the option. If the owner pushes back that’s ok, then I’ll just rely on the extra clause … but currently “voetstoots” is a concept I’m not keen on. And it’s not that easy for owners to just get OTPs, so they’re obligated to make things work (if they’re not hiding anything).
If I were a buyer, there is no way that I am going to part with 4K for a home inspection if I don't have commitment from the seller. I guess that I have always bought properties that were bargains and in high demand, so no time for messing around. And when I sold, I have always priced to sell, never been on the market for more than 2 weeks.
But maybe that's just me, my own context, and I have my own methodical way of inspecting and valuing a property. I have only used home inspection services where there is a clear problem, and the intent is always to use the report to negotiate even further.
In your experience, what made dealing directly with banks better than going through bond originators … and which originator had you used that gave you the bad experience?
Bond originators talk a good game, and they use language that suggests that they are in your corner, but they actually value their relationship with the lenders far more than their relationship with you as the loan-seeker. Let's be honest, Average Joe buys a home 3 or maybe 4 times in his life, so BOs don't bet on much return business. In contrast, they deal every single day with the staff of the banks, for many, many years, and it is not uncommon for them to foster relationships with them, invite and get invited to braais, attend their children's christening /
bar mitzvahs, or kitchen teas and other hens' parties. Average Joe is just a fleeting meal-ticket, in their lives for maybe 3-4 weeks if they are lucky. BOs are mainly women, who after all, are social creatures. Can you see the odds being stacked in the banks' favour?
I once purchased a property where the (small independent) BO was "highly recommended" by the agent, so I thought cool, let's give it a try. Communication was lacklustre, initial results were shocking and it was clear to me that she was just an unnecessary intermediary, playing "post office" with applications and quotes and never challenging anything with the banks. I initially coached her on some risk management concepts, and then after a few weeks I saw that I was running out of allotted time (another tool in their box of tricks), so stop-loss strategy kicked in and instead of accepting the pathetic offers that she suggested, I summarily removed her mandate. I then went straight to my preferred bank, who gave me quite a few points better than what they originally quoted her. All my own fault of course, allowing the agent to speak a hole in my head. Even today, I kick myself for being misled.
