What happens once I have signed an Offer to Purchase?

What happens once I signed my Offer to Purchase?

Buying a home can be a challenging experience if you are unsure what to expect. 

PLEASE NOTE: the purpose of this post is to inform only. If you need more detailed information, contact your local conveyancer. 

Once the Offer to Purchase was accepted by the seller, the buyer may have a couple of weeks to acquire a bond, in case it is not a cash transaction, as most purchases are subject to bond approval. As soon as the buyer obtains bond approval, the seller instructs his attorney to attend to the registration of transfer of the property to the buyer's name at the Deeds Office. This however, could take a few weeks to complete...

What documents are required to purchase a property? 

The transfer attorney will gather the following before lodging a transfer of registration at the Deeds Office:

• The payment of the buyer's deposit, if there is one.
• Guarantees from the bank offering the bond to the purchaser that the outstanding amount will be paid on the registration of transfer.
• A clearance certificate from the local municipality as well as the Body Corporate (if applicable) that all outstanding fees associated with the property are paid in full
• A Transfer Duty receipt from SARS
• Signed offer to purchase and FICA documents from both the buyer and the seller
• Consent from the seller's bond holder, that their current bond may be cancelled. 

Once all of the above is in place, the attorney may lodge the instruction in the Deeds Office for registration. On the date of registration, the buyer will officially becpme the new owner of the property. 

How long does the registration of property transfer process take?

Currently the transfer process takes 6-8 weeks from the instructions are received to completion of registration.

What can a buyer do to speed up the registration of property transfer process? 

• As soon as the seller accepts the Offer to Purchase, the bond application process needs to start immediately. Time is of the essence. If you fail to provide proof of a bond in the stipulated period, the process may terminate and you may lose the property. 
• Provide FICA and other documents to your estate agent, bond originator, transfer and bond registration  attorneys as promptly as possible.
• Ensure your Income Taxes are fully paid to date at SARS.
• Understand all the costs that are payable by you, the purchaser: You are liable for the cost of the Transfer Attorney as well as that of the Bond Attorney. Ask you conveyancer or estate agent for an estimation of the required costs upfront so that you can make provision for it. Note: these costs need to be paid in cash. It is not included in your bond. 
• If you are uncertain about any matter in this regard, discuss it with your estate agent or Transfer Attorney. 

What else should a buyer know?

• The offer a buyer makes to a seller is a binding contract. Ensure you fully understand the conditions of the contract before you sign the offer. If anything is unclear, you should ask your estate agent or Transfer Attorney to explain it before signing.
• You will receive the keys to the property upon taking occupation of the property. If this happens before registration at the Deeds Office, you will be liable for occupational rent payable to the seller.  However, if the seller needs more time after registration, you could receive occupational rent instead. If you receive the keys upon the date of registration, the property is yours and you become liable for payment of the rates and taxes, the bond, utilities and the maintenance of your new home. 

Contact Alta, The Property Match Maker, from SEEFF, if you want to buy or sell property in Centurion, South Africa. 

She has a wealth of knowledge and delivers service excellence with flair! 

Mobile: 071 758 0996

alta.nel@seeff.com

https://altanel.co.za

#ALTANEL

Five Symptoms That Indicate Your Property Is Overpriced

Having a property that just does not sell is incredibly frustrating! You have employed 10 agents to do the job, but the buyers are nowhere to be found. Why is this? 

Just like every parent believes their child is extraordinary, home owners often also believe their property is the best home on the market and should therefore justifiably be sold at a higher price. Unfortunately, it doesn’t always work that way and often home owners wait for months or years before the property finally sells - if at all.

In the current buyers' market, the risk of an overpriced home isn’t simply that you won’t get your asking price – there is also a risk of potential buyers that never even get drawn to view the property. An unreasonable price often stigmatizes the property and causes potential buyers to simply pass it by.

Soon after a property is listed on the real estate portals, major activity occurs around the newly listed property. This initial hype slows down after the first month and within three to six months, the property becomes an old listing that gets filed along with the other forgotten properties in the junk drawer.

Just because owners may have had a thing for exquisite showers and spent thousands of rands to install them in all bathrooms, does not mean a house will sell for R100 000 more than the neighbour's house. It has been proven time and time again, that a property's value is determined by the market, not by an agent, nor any other individual. It has nothing to do with how much the seller paid for the house a number of years ago or how much he is hoping to profit from the house, but driven purely by similar recent sales in the immediate surrounding area.

Five Symptoms That Indicate Your Property Is Overpriced

Your home is priced well above your neighbours' properties.

The first thing estate agents do before they recommend a price to a seller, is to look at the sales prices of the last three sales of comparable-sized homes in the neighbourhood. Be sure to get the opinion of two or three reputable agents and decide what a suitable price tag for your house will be. Over-capitalization also has the unfortunate consequence that the value of additions just does not get reflected in the final sales price and often is picked up at a bargain by a savvy buyer.

After being on the market for three months or more, you have not received any offers.

Although some prestigious, high-end homes often stay on the market for long, others should get a lot of interest in at least the first four weeks if they are reasonably priced. If the buyers perceive your property to be priced correctly, you may receive a number of competitive offers to purchase in a relatively short time frame.

You accepted the recommendation of the estate agent who valued your property at the highest price and expected other agents to market it for the same price. You hardly ever hear from the agents and are left in the dark about the progress made.

Realtors seldom work on a property that is overpriced. They may list it and then forget about it. Firstly, because they know they will not get any strong interest in their advertisements, and secondly, simply because they know that their chances of selling the property at an inflated price, are slim. You are advised to speak to agents from a couple of reputable companies before choosing who you would like to represent you. Furthermore, if you consistently hear some agents indicate a price that seems lower than what you expected, it most likely is the correct price. Estate agents from a company such as Seeff, are trained and experienced in proper market analysis and are also familiar with real estate activities in the market.

There aren’t any scheduled viewings. 

Immediately after a property is exposed to the market, there should be at least a handful of appointments with potential buyers who want to view the property. If this is not the case, it possibly indicates that buyers scanning the web are finding enough other similar properties in the area at a lower price. You are advised to adjust the price a little if there has been no viewing in the first 4-6 weeks. At this point it is not yet too late to reduce the price. However, it is important to reduce it as soon as you become aware of these symptoms, if you hope to keep potential buyers interested.

No real interest is shown by walk-ins during an Open House / Show day. 

You leave your home Sunday after Sunday while one after the other agent puts it on show, yet walk-ins never show much interest after hearing the asking price. Remember, the market (the buyers) determine the price of a property. Be a fast learner! Test the market- no results!-adjust the price and get it sold... If you notice one or more of the symptoms described above when trying to sell your property, you are advised to revisit the pricing of your property with an experienced estate agent, from a reputable company such as Seeff. Seeff has been in the real estate business for over 60 years and covers most areas in South Africa and even selective areas abroad.

An experienced area agent will always be able to advise you of the market trends in the area. You may be surprised, but sometimes a relatively small adjustment results in a sudden flood of activity, as buyers suddenly bring you multiple offers. And no, this will not be because your property is priced too low! It will be because your property, is perfectly priced.

Contact Alta, The Property Match Maker, from SEEFF, if you want to buy or sell property in Eldoraigne, Centurion, South Africa. 

She has a wealth of knowledge and delivers service excellence with flair!  

Mobile: 071 758 0996 

alta.nel@seeff.com
Website: altanel.co.za

What costs are the seller of a property liable for?

Before you decide to sell you home, it is important to know what costs you, as the seller, will be liable for. Understanding this will assist you to determine your estimated proceeds from your property. This is particularly important when your intention is to acquire another home with the proceeds of a sale.

PLEASE NOTE: THIS IS SHARED FOR INFORMATION PURPOSES ONLY.  KINDLY CONSULT WITH YOUR LOCAL CONVEYANCER IF YOU NEED MORE SPECIFIC DETAIL.

As the seller, you are liable for the following costs

Cancellation of your existing bond 

• The bank that holds your home's deed as security for the payment of your bond, will not release theses deeds without a guarantee that the outstanding balance will be paid upon registration.
• The bank will instruct an attorney to handle the current bond cancellation on their behalf.
• The bank's attorney will charge a fee, payable by the seller, before registration.

Rates and / or Levy Clearance

• Prior to registration of the transfer of the property to the new owner, the Deeds Office will ask for proof that all your utilities are paid in full and up to date
• The transfer attorney will obtain the clearance figures from the municipality and the body corporate and home owner's association, if applicable.  

Estate Agent's Commission

• An estate agent who markets and sells your house, normally works for a fee.
• The estate agent's commission will be payable from your proceeds, on the date of registration. 

Electrical Compliance Certificate

• No transfer of ownership may take place without an electrical compliance certificate. (Occupational Health and Safety Act 1993)

• You are advised to obtain the certificate from your local electrician who will conduct thorough testing of all electrical ware on your property. You are advised to apply for the certificate once you decide to put your house on the market. This way you will have ample time to make electrical corrections beforehand, as it may become pricey if the electrician finds a matter of non-compliance and has to fix it. 

• The seller pays for the certificate which is issued by accredited electricians only.

Other Possible Charges

• Electrical fence compliance certificate
• Gas installation compliance certificate
• Entomologist reports (in certain areas)
• Plumbing certificate (in certain provinces)

What can a seller do while they wait for their property to be sold?

• Ensure all your income tax is paid in full at SARS
• Ensure your rates account is up to date
• Arrange an Electrical Compliance Certificate/gas and electrical fence certificates 
• Ensure all additions made to your property are on the plan registered with the municipality
• Calculate your estimated proceeds with the information at hand
• Discuss any uncertainties with a local transfer attorney. 

When is Capital Gains Tax payable by a seller?

Capital gains tax is payable when a seller sells an asset that exceeds R2 million on properties not exceeding 2 Hectares.

Kindly contact your local tax practitioner for more information.

Contact Alta, The Property Match Maker, from SEEFF, if you want to buy or sell property in Eldoraigne, Centurion, South Africa. 

She has a wealth of knowledge and delivers service excellence with flair! 

Mobile: 071 758 0996

alta.nel@seeff.com

Website: altanel.co.za

What Documents Do I Need When I Apply For A Home Loan?

Applying for a home loan in South Africa?  What documents will you need to provide for the home loan qualification to take place? 

Feel free to contact a bond originator or your bank directly to obtain the information required, however, for your convenience, here is a list of what documents you should gather once you want to apply for a mortgage.

(Please note: In terms if the banking sector's current lending criteria, they reserve the right to call on additional information and supporting documents. Use this post as a mere guideline.)

Documents required for salaried applicants:

• Three months' payslips - income to reflect against your bank account.
• If in receipt of a monthly allowance, the bank requires 6 months' latest payslips.
• Latest three months' bank statements - internet statements not accepted.
• If you are not a South African citizen, a copy of residence permit and work permit is required.
• Identity document
• Proof of address
• Rental contracts in respect of rental income to be used in affordability assessment

Documents required for self- employed home loan applicants (including sole proprietors and small businesses)

• Comparative financials covering a trading period of three years
• Letter from your auditor conforming your personal income
• If financials are more than 6 months old, up-to-date signed management accounts are required.
• Signed Personal statement of assets and liabilities
• Business bank statements covering the last 6 months
• Personal bank statements covering the last three months
• IT34 for the past three years
• Company/CC/Trust statutory documents
• Identity documents of directors/members/trustees

Contact Alta, The Property Match Maker, from SEEFF, if you want to buy or sell property in Eldoraigne, Centurion, South Africa. 

She has a wealth of knowledge and delivers service excellence with flair! 

Mobile: 071 758 0996

alta.nel@seeff.com

https://altanel.co.za

#ALTANEL

How To Find Your Perfect Home To Buy

Knowing what you want before you start your house hunt, dramatically simplifies the whole process... The house hunting process always requires some compromise, but having a good understanding of your most important requirements and preferences upfront saves a lot of time and energy.  This is how to do it.

Make a List

When you set out to buy your perfect home, begin by making a list of your "must haves" and the "nice to haves". Spend time with your partner to determine exactly what it is that you want in your new house and decide beforehand what you would be willing to compromise, should the need arise. 

For instance, your list may indicate the size of the garden you wish to own, the level of security you require, what size and style of kitchen would be great and whether you are willing to purchase a fix-her-upper. 

Getting clear on what you and your partner are looking for will certainly narrow the house search process down.

Create A Scrap Book or Vision Board 

Before you start your house hunt, determine your style. 

Create a scrap book or vision board from magazine cuttings or internet images of your dream kitchen, garden or fire place, etc. This will assist you greatly once you start house hunting. It will narrow down your search immensely as you will not waste time looking at properties that do not offer what you want.  

It is a great idea to share your collage with your estate agent. The collage will assist your agent to understand what you are looking for. When your agent knows what you want, they will certainly endeavour to show you homes that incorporate those attributes.    

Visit Show / Open Houses

Visiting show houses or open houses hosted over most weekends throughout the year offers you the opportunity to discover several homes in your area of interest and introduce you to estate agents who are specialists in the area. 

When visiting show house / open house events, you will soon discover what typical homes in your area of interest generally offer and at what price they are sold. By understanding this, you will be able to determine the costs associated with your predetermined "must haves" and "nice to haves".  

Visiting show houses and open houses introduces you to realtors that are area specialists and allows you to build relationships with them, which may just be of great value to you as they get to know you better. Getting to know an area agent will empower you to gain first hand information about local house prices, the crime rate and the quality of the schools in the community. Furthermore, the agent who gets to know your preferences, will be on the look out for your perfect home and arrange your viewing of the property, as soon as it comes on the market and will not waste your time with ill-matched properties. 

Visiting open houses or show houses, will introduce you to the neighbourhood. Is the community close to main roads, close to parks, shops and good schools. By driving through the community you will be able to predetermine whether the neighbourhood is family oriented or maybe largely populated by pensioners.  

Know What You Can Afford Before You Fall In Love

Having enough cash in hand is always a good thing when buying a home, but for most, the reality is that some percentage, if not all, needs to be covered by a bond. You really need to know upfront the size of loan the bank will approve, even before you start looking for your perfect home. 

Way too often, potential home buyers start their house hunting without pre-qualification by a financial institution. This practice, often results in major disappointments for all the parties involved in the transaction, i. e the seller, the agent, as well as you, the purchaser. Falling in love with a property without knowing what you can afford, is hardly ever a good idea, as it causes stress and uncertainty. 

Instead, you should visit a couple of financial institutions or preferably a bond originator near you to get pre-approval for a home loan and so will know what deposit may be required. Once you are qualified, you are equipped with the financial boundaries within which to remain and can kick off your targeted home search, without worrying that an offer to purchase may fail due to lack of affordability. Knowing what you can afford upfront, surely gives a person peace of mind during the entire process. 

Contact Alta, The Property Match Maker, if you want to buy or sell property in Centurion, South Africa. She has a wealth of knowledge and delivers service excellence with flair! 071 758 0996.

How To Sell Your Property Fast In Slow Economy

Selling your property fast in a strong economy is relatively easy, but selling in a slow economy is certainly more challenging. However, property is sold every single day, regardless of the supposedly weak economy we find ourselves in. 

Having your home on the market can be very stressful for the whole family. To keep your home tidy week in and week out certainly is challenging especially if you have children and pets. Therefore you need to sell it fast and get the stress over and done with.

To sell a home quickly, it needs to be presented well, marketed well, and priced correctly. 

If you need to sell your home on the quick, these tips may just help you get offers very quickly and closer to your intended asking price. 

Plan to sell. 

Too often sellers are unprepared to move when the house goes on the market. The garage is not sorted out, store rooms are stuffed to the roof and rubble lies scattered in the yard. 

When you show your house to prospective buyers, this should not be the case. Buyers looking at your property should see that you are ready to vacate easily. Likewise they should not fear that you will leave your junk behind when you have to move in a hurry.

Plan to move. Be ready to move. Then put your dwelling on the market.  

Get a storage unit

The easiest way to unclutter is to shove all the "stuff" into wardrobes, but this is a bad idea! Interested buyers are sure to open your cupboards and if they see cluttered and disorganized spaces, it may reveal that your home lacks sufficient storage space. 

Consider renting a storage unit for the time your home is on the market. If you choose to use a container, it can be transported to your new home, in a wink of an eye. 

Staging and photography

Hire an agent that uses a professional photographer to take photographs of your home. But be sure to have it taken AFTER you have decluttered the home. Modern day buyers are informed and buys a house online and they are actually 80% sold even before they viewed the property in person. Needless to say, if the photos of your house taken by the agent  is bad, chances are that they won't buy your house.  

Find the right real estate agent

Hire an estate agent who is familiar with the neighborhood. Avoid using too many agents and allowing all of them to peg their boards in front of your entrance. Too many boards suggest there is something wrong with your house and it could even lower the amount a buyer will offer. 

Also do your part to get the word out about your house being on the market. You should still refer them to your agent, but  the more channels of communication are utilised, the faster your house will sell. 

Depersonalize

Buyers that view your house need to imagine themselves living in your home. Therefore, remove any religious symbols, trophies of deer you have successfully hunted years ago, the large cap collection in your bar and the family photos on the fridge and walls. This will enable the buyer to focus on your house instead of on the paraphernalia that are only sentimental to you.

Feel free to hang an art work that enhances and compliments the space and tone the room down.

Light it up

A bright, well lit home is inviting.  Change the bulbs to white light bulbs to brighten the space. Furthermore, draw your curtains and open the blinds so that the natural light can flood the room and make it seem larger. Consider painting the room in a light shade of grey if it seems dark and gloomy inside. Grey is a soft neutral colour and will go well with any colour you may currently have in the space.  

Zoo-sh up the curb appeal!

First impressions count!  Your home’s exterior is typically the first thing a buyer sees.

Tidy up your yard, trim the shrubs, cut the edges of the lawn and sweep the paving. A fresh coat of paint on the fascia boards and gutters will not cost much but surely improve the first impression of the house. 

Brighten the porch with a flower pot filled with in season flowers bought from the local nursery. Clean the bird droppings from the steps leading to the front door.  Add colour to your front door or simply give it a fresh coat of varnish to make the home feel inviting and well kept.

Contact Alta, The Property Match Maker, if you want to buy or sell property in Eldoraigne, Centurion, South Africa. 

She has a wealth of knowledge and delivers service excellence with flair! 

071 758 0996

alta.nel@seeff.com

https://altanel.co.za

#ALTANEL