All you need to know.
"Make me an offer I can't refuse."
Submitting an offer to purchase can be a daunting task. But it needn't be if you go in armed with this essential information:
You have finally found your dream home and are now ready to put in your offer to purchase, but you are not sure how to go about it and what is involved.
Seeff says that the first thing to remember is that it is a legally binding contract. Buying a home is a significant financial commitment and you need to do your homework in terms of the price that you want to offer. Always be sure to pay no more than fair market value unless you are sure that it is the home that you want and you know that you might be paying more than the home is worth at that time.
The next important consideration is whether you will need a housing bond. In most instances, especially when it comes to first time home buyers, a bond is required. You may also have to pay a deposit as part of the transaction.
When you put in your offer, you would also need to be sure that you are able to finance the transaction costs. Even though the property may be exempt from transfer duty for example, there will still be bond registration costs that you may need to pay. It is therefore advisable to check with the agent what costs there might be.
To qualify for a housing bond, you will need a positive credit record and will need secure income of three times the loan amount. It is usually advisable to ensure that you are able to qualify for the home loan amount before you put your offer to purchase in. This way, you will also avoid disappointment.
The next step is then to check the home thoroughly to ensure that you have seen all aspects of it. Also chat to the estate agent to find out if there are any structural or maintenance issues that you need to be aware of. Be sure to check out any rules and regulations in the case of a sectional title complex or estate.
The final step is to decide how much you want to offer to pay for the property, unless it is a development in which case the prices tend to be fixed. The agent will advise you of the price guideline that the seller would be prepared to consider. If the asking price is a little above your budget, then be sure to consider whether you can financially consider a counter offer should your offer be turned down.
Buying a property is always an exciting activity, but it requires careful consideration as it is a substantial financial and legal commitment and it is therefore always advisable to work with a credible real estate agency.