SIGNIFICANT INFORMATION CRUCIAL TO BUYERS AND SELLERS

These are crucial facts that are imperative to the buying and selling of immovable property. Buyers and sellers are often left in the dark and find out too late that they should have provided information more timeously and end up out of pocket. In order to avoid surprises and disappointment, we would like to furnish potential buyers and sellers with the information that will avoid these situations.

SELLER INFORMATION

The very first task that you need to do is to inform the institution that holds your bond of your intentions to settle early. Failing to do this will result in penalty interest being charged. Not ideal when every cent is important in the structuring of your next deal.

The next important aspect of selling your property is choosing your estate agent/agency. There are three elements that can prevent you from achieving the highest price in the shortest time. They are condition, price and the marketing plan. Your agent must assist you with the information to ensure that none of these aspects are overlooked.

The condition of the property is your responsibility. To ensure that it is presented well, you need to ensure that all the aspects that might detract from a sale are repaired and that the general condition is impeccable. Small aspects can cause big losses.

Over exposure at the wrong price will be detrimental to you attracting the best price. Too low a price will leave you out of pocket. Too high a price will cause inconvenience with the wrong buyers through your property. Buyers will compare your home with others in the market at the same price. If your property is not priced correctly, it will not compare and will therefore not attract any offers. The marketing of the property is as important as the other two aspects to achieve the best possible price. Buyers are not loyal to any specific agency. By giving a sole mandate to an agency does not remove certain buyers from buying your property. Without the correct advertising and showing of your property, the overall objective will not be achieved. So, if you are serious to sell, employ someone who gives you an undertaking in writing of how serious they are to sell your property to ensure that you do get the best price in the shortest possible time.

BUYER INFORMATION

Buyers are often in the dark with regards to the costs and the responsibilities involved in real estate transactions. There are even those who do not realize that by paying the rentals that they do, they can afford to buy their own property.

The interest rate has come down significantly over the past few months. Although there are no signs of more dramatic reductions, it also does not seem that there will be any significant increases soon.

Do you know how to calculate your affordability, deposit requirements and the additional costs involved in acquiring your own “HOME”? Most of the financial institutions now require 25 – 40 percent deposit on vacant land (stands) and between 5 and 30 percent on residential properties. These vary from one organization to the other depending on the value of the transaction.

Herewith, the calculation to calculate your affordability on a residential transaction.

• Purchase amount = R 1 000 000.000.
• Minus 15% deposit = R 850 000.00.
• Divide by 1 000 = 850.
• Multiply the result by 10.32 (20 year bond at 11% interest) 850 X 10.32 = R 8 772.00.
• This is your monthly re-payment on the loan of R850 000.00.
• Your combined monthly income must then be three times the monthly repayment.
• R8 772 X 3 = R26 316.00.

These calculations should give you a fair ballpark idea of what you can afford. However, your monthly expenses will also be taken into account to calculate your affordability. We also make use of Bond Facilitators that will assist you in the communication process with the financial institutions to obtain your loan. You will be required to provide proof of income to the financial institutions. Selfemployed buyers will be required to provide extensive income documentation over a long period.

For more detailed requirements you can contact us and we will gladly furnish you with these requirements.

There are some additional costs involved in the purchase of real estate. The legal fees and bond registration fees depend on the transaction amount.

Please feel free to contact

JAN VAN DEN BERG ON 082 451 2116 OR ELISE GAUGAIN ON 082 460 8631 AT BASIE BOTHA ESTATE AGENTS

Should you require any additional information regarding the buying and selling process and its costs.