In today's favourable property market for buyers, not all buyers are on an equal footing. Few disappointments compare to losing your dream home to another buyer with a seemingly superior offer. However, it's important to note that "better" doesn't always mean "higher" in the context of offers, and the fine print, the terms and conditions, can often make or break a deal.
As a prospective buyer, there are several proactive steps you can take before submitting your offer to make it as attractive as possible to the seller. One of the most effective strategies is to minimize pre-conditions in your offer. A common example is the "subject to finance" clause. While not inherently problematic, buyers should prepare their financial application and gather all necessary supporting documents beforehand. It's essential to be well-informed about your affordability, credit score, and any potential surprises that a bank-initiated credit check might reveal, such as returned debit orders.
Before drafting your offer, it's beneficial to establish a good rapport with the estate agent representing the seller. These agents act as your intermediaries, and their goal is to facilitate an agreement that benefits both parties. Keeping your offer "clean" involves finding common ground, primarily regarding the price, but it may also require some concessions and compromises on both sides.
Your estate agent can provide valuable insights into the sale, beyond just the price. For instance, the seller's urgency to move or close a deal swiftly due to other offers they've made elsewhere can significantly impact your offer's attractiveness. Being flexible and accommodating with deadlines can make you appear as a cooperative buyer, potentially swaying the seller in your favor.
Buyers should also inquire with estate agents about the seller's circumstances, including their desired closing timeline and whether their sale is contingent on purchasing another property. If you're uncertain about the implications of certain conditions, don't hesitate to ask the agent to explain the pros and cons for all parties involved. Remember that both you and the estate agent share the common goal of expediting the sale.
A clean offer means refraining from imposing unnecessary conditions on the sale to save a few thousand rands. Minor issues like repairing scuffed skirting boards or covering marks from hanging pictures can be easily resolved after you've moved in. The seller may also wish to set conditions within the contract, particularly regarding the timeframe, where having pre-approval for your bond can expedite the process considerably.
Considering that properties in South Africa typically spend only six to eight weeks on the market, concluding negotiations swiftly benefits everyone involved. During negotiations, the property usually remains on the market, so cluttering your offer with unnecessary "subject to" clauses can jeopardize your chances.
It's worth mentioning that sellers in semi-rural areas outside major cities are currently in a strong selling position, given the trend toward remote work arrangements. Families are seeking less densely populated areas for their homes. Whether you're a family seeking a more spacious home or a first-time buyer exploring suburban living, it's essential to align your ducks early in the negotiation process. Aim to present the cleanest offer with the fewest conditions on the table, and you may just win over the seller.