Offer to purchase question

Gozado said:
@Toxxyc, and @RonSwanson,
and others who post here about Getting The Deal Quickly, or Walking Away: thank you for your posts. I have been influenced, and I'm glad of it, by your way of combining knowledge, experience, and your gut feeling, and simply not making yourselves available to have your time, money or emotional reserves burnt up on an agent-driven roller-coaster.
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You're welcome.
There are many factors which may cause a seller to reject an offer -- especially the first offer on a property when it has only been listed for a few days. Here is an article that explains why:
www.privateproperty.co.za

Why you shouldn't reject a fast offer on your house

Home sellers will often develop misgivings if they receive a strong offer shortly after listing their property, and wonder whether the property has been priced too low.
www.privateproperty.co.za www.privateproperty.co.za

The main reason is greed: due to the speed of the offer after listing, the seller begins to feel that the property was priced far too low in the first place.

Also, sometimes the seller isn't emotionally quite ready to part with the property, especially true where the seller is physically living in the home. When confronted with the reality of packing up everything and leaving, based on a small piece of paper, the seller gets cold feet and rejects the offer.

It's all part of the fun of buying property.
 
Exactly what RonSwanson said. Also, statistics show that, on average, properties sell for something like 10% to 13% under their asking price. Keep that in mind when making your offer.
 
Toxxyc said:
Exactly what RonSwanson said. Also, statistics show that, on average, properties sell for something like 10% to 13% under their asking price. Keep that in mind when making your offer.
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This. The house we bought (and are awaiting registration on) we made an offer via WhatsApp about 20% below the asking price. Seller (via agent) blew us off. Two weeks later the agent contacted us to ask if our offer was still on the table.
 
Toxxyc said:
Exactly what RonSwanson said. Also, statistics show that, on average, properties sell for something like 10% to 13% under their asking price. Keep that in mind when making your offer.
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Though this does depend on the market conditions.

Sometimes sellers will be a bit more savvy and price the property correctly. Sometimes they'll be greedy and way overprice it, and then just sit on it for ages. (One seller in my old complex listed at R1.3M, waited 6 months, then eventually accepted an offer of R950k, because she was desperate by that point.)
 
Yeah look location and the actual property plays a role. Not all sales are done below asking. I've seen houses where the place really looks good, and then gets advertised for, let's take the one example I saw, R1.6 mil. I figured I'll put in a lower offer, but got blown off. Later on I asked the agent if the place sold and he said yes, at more than asking. Several people liked the place so much that they offered more, and the house eventually sold for R1.65 mil.
 
A big tip for guys who want to renovate.

Look for what you qualify (as in affordability), and if possible take a bigger home loan (but keep the extra locked in).

When you need it, just apply via the bank to have some unlocked.

The benefit, you only pay once for registration and legal fees.
 
Hi all, Any experience when choosing a bond originator ? Ooba vs Betterbond vs... ? Or should just walk into the nearest bank. Would like to see what I currently qualify for. Would need a more solid figure than using any of the apps. I'm also self employed, so would need to submit financials.
 
Webcast2 said:
Hi all, Any experience when choosing a bond originator ? Ooba vs Betterbond vs... ? Or should just walk into the nearest bank. Would like to see what I currently qualify for. Would need a more solid figure than using any of the apps. I'm also self employed, so would need to submit financials.
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I used Sanette Payne from http://paynelessbonds.co.za. Their team was superb.
 
zerocool2009 said:
A big tip for guys who want to renovate.

Look for what you qualify (as in affordability), and if possible take a bigger home loan (but keep the extra locked in).

When you need it, just apply via the bank to have some unlocked.

The benefit, you only pay once for registration and legal fees.
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Banks flat-out refuse to do this these days. I've tried. Three times.
 
My fees (excluding bank fees) ended up at R58k for a R1.15mil property. So I'd say around R65k to R70k, depending on the lawyers. Ask for a discount.
 
Webcast2 said:
Hi all, Any experience when choosing a bond originator ? Ooba vs Betterbond vs... ? Or should just walk into the nearest bank. Would like to see what I currently qualify for. Would need a more solid figure than using any of the apps. I'm also self employed, so would need to submit financials.
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I'm not familiar with originators but AFAIK they don't deal with SA Home Loans. You need to apply to them directly.
 
Hi All, out of interest, if you plan on putting down a deposit what date is the best:
On Offer Acceptance
On Bond Approval In Principle
On Bond Grant
X number of days

The reason I ask is, if you are applying for a bond and you are not sure of the out come of the bond application is it wise to pay that deposit upfront, which brings me to something else, has anyone used an option of using a escrow service (Tradesafe, BuyersTrust etc), its quite common for the Agents to want to keep the deposit but however most of them cannot even give you details on the costs and interests associated with the Trust Accounts they use.
 
Webcast2 said:
Hi all, Any experience when choosing a bond originator ? Ooba vs Betterbond vs... ? Or should just walk into the nearest bank. Would like to see what I currently qualify for. Would need a more solid figure than using any of the apps. I'm also self employed, so would need to submit financials.
Click to expand...
Before approaching a Bond Originator please investigate some of the offers that the Banks have in terms of Loyalty Points, Discounted Attorney fees, often these benefits are only available when you apply directly to the banks as they save on origination fees.
 
marysms said:
Hi All, out of interest, if you plan on putting down a deposit what date is the best:
On Offer Acceptance
On Bond Approval In Principle
On Bond Grant
X number of days

The reason I ask is, if you are applying for a bond and you are not sure of the out come of the bond application is it wise to pay that deposit upfront, which brings me to something else, has anyone used an option of using a escrow service (Tradesafe, BuyersTrust etc), its quite common for the Agents to want to keep the deposit but however most of them cannot even give you details on the costs and interests associated with the Trust Accounts they use.
Click to expand...

Put the deposit down just before you lodge at the deeds office. Just have proof to the agent/owner/bank that you have it. If it lies in trust, you earn peanuts on interest.

I always make that a condition in my OTP (no one put the buyer's interest first LOL ! )
 
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