What are the common seller and buyer mistakes to avoid?
Category Property Tips
While the market remains generally favourable for buyers, they need to guard against complacency and taking too long to put in an offer, or presenting a price which is too low. Sellers too need to guard against high price expectations or taking too long to accept a good offer.
Avoiding these common mistakes will take out the stress of selling or buying and make the difference between delays or an efficient transaction:
For sellers:
Do not underestimate the costs of selling. Aside from estate agency commission, budget for necessary repairs and obtaining Certificates of Compliance and possible bond cancellation costs.
Gather all necessary documentation including title deeds (if paid up), mortgage loan details, approved plans, personal documents, company/trust documents(if applicable) and ensure that taxes are up to date.
Do not set an unrealistic price and bear in mind that you may need to make concessions in view of the current market. Listing at the correct market price gives you the best chance of success.
Consider all serious offers and guard against waiting for a higher offer. You can always counter the offer and there is often a deal to be made which suits both parties.
Repair where needed, but do not make costly renovations in the hope of a better price. Often bathrooms and kitchens that are redone before selling do not suit the new purchaser's tastes. Poor maintenance on the other hand will put buyers off or entice them to make low offers.
Be prepared for viewings by ensuring the home is well presented, clean and clear of clutter and if possible, be flexible with viewing times for buyers.
Choose the right agent. Beware newcomers with high price promises and, in some instances, even offer "fake buyers", all in an attempt to secure your business. VERY IMPORTANTLY, ask your agent for a record of their sales in the area which will help you ascertain whether they know the area well and are experienced in pricing correctly.
For buyers:
If you need a home loan, ensure you do a prequalification upfront so that there are no hold-ups once you find the right home and can put in an offer with confidence.
Ensure you have all your documentation ready upfront including personal information, bank statements, employment verification to ensure the loan application can proceed quickly.
Do not underestimate the costs of purchase. Get an upfront quote and have adequate funds readily available to cover the deposit, transaction costs, attorney's fees and transfer duty (above R1m).
Sell before you buy. The "72-hour clause" allows the seller to continue marketing if there are contingencies such as the sale of a property, and you could lose out.
Check upfront what forms part of the sale in terms of the fittings in the home and do not assume that fancy lights or mirrors will be part of the deal. Ensure it is included in the offer.
If you love the home, do not delay, put in a serious offer. Unless you put in an offer, you will never know whether the seller will accept it.
Be prepared for a counteroffer. Sometimes, the seller will come back with a counteroffer, or decline. Usually upping the price offered and removing contingencies could clinch the deal.
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Author: Gina Meintjes
