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What is your home worth?

Knowing how much the property is worth will equip homeowners with the knowledge to make well-informed plans for the future, regardless of whether the owner plans on selling. There are several resources available to homeowners who wish to discover the value of their home, the most reliable of which is to have a real estate professional provide a free evaluation of the property.

According to Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett, real estate professionals are best equipped to provide the most accurate market valuation of the property. “That being said, information has become so readily available that homeowners could get a rough idea of what their home could be worth before they involve a real estate professional to conduct an official appraisal,” says Goslett.

The first thing homeowners can do is to look at similar listings online and find out what the average asking price is. When doing this, homeowners should be aware that the initial asking price of a home can vary greatly from the actual selling price, so it is not always reliable to base one’s selling price solely on the asking price on neighbouring homes listed on property portals.

“Real estate agents will know what neighbouring homes actually sold for, and not just what they were listed at. Real estate professionals will also conduct a Comparative Market Analysis (CMA) to determine a property’s value accurately. In a CMA, statistics are gathered from various sources to determine the average price per square metre of properties in the area. This provides an agent with a base from which to determine the value of the home,” Goslett explains.

Once this base is established, real estate agents then factor in the unique features of the property and how these will impact the desirability of the home. The more desirable the features, the higher the asking price will be.

To provide homeowners with a rough idea of which features tend to drive up prices, Goslett mentions that the location and condition of the property, along with the size of its plot and the views it may offer, all contribute towards achieving a higher asking price. “Security features, finishes and fixtures, and any other features that could set the house apart from others in the areas, such as solar panels or heated towel rails, could all increase the value of a home.”

Beyond this, there are also several factors outside of the control of homeowners that will affect the value of the property. Some of this information is widely available to the public: such as interest rate hikes and economic downturns; or plans for new developments in the area and improvements to local amenities such as parks or shopping malls. While the former will have a negative impact on the home’s market value, the latter is likely to have a positive effect.

“Both countrywide influences and local factors will have an impact on home’s potential perceived value among buyers. To arrive at the most accurate value of the property, real estate practitioners will look at what is affecting the South African property market as a whole. They will also consider what trends are forming within that specific neighbourhood and how this will influence the perceived value of the home,” Goslett explains.

While it is possible for homeowners to get a rough idea of what their property could be worth by reviewing information that is widely available online, the most accurate way to determine a home’s value is still to involve a real estate professional.

“A correctly-priced home will appeal to a wider range of buyers and will be sold within the shortest possible timeframe. Buyers often assume that the seller will be more desperate to sell if the home has been on the market for months on end and will then approach the seller with low-ball offers. For the best chance of securing a sale at full asking price, homeowners should always use a real estate professional who can provide an accurate valuation of the property and ensure a more seamless sale,” Goslett concludes.

Original Article: https://www.myproperty.co.za/news/market-and-opinion/what-is-your-home-worth-22-07-21

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5 Easy ways to stage your home yourself

The primary goal for most sellers is to sell their home within the shortest time, for the highest possible price. To achieve this, sellers should ensure that the home appeals to the highest number of potential buyers in the market. This is where home staging comes in. Many real estate professionals recommend it as a way to highlight the home’s prime selling features and attract more buyers.

“While it is usually best to have your home professionally staged by a knowledgeable staging specialist, there are a few ways to improve the appeal of your home even if you cannot afford professional home staging,” says Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett.

If you are going to stage your home yourself, Goslett suggests considering how mannequins and display windows are used to market items in stores. “The display allows the passer-by to imagine themselves using the items in the window, which may entice them to buy the item. Similarly, home staging is used to showcase how best to utilize the home, which can entice potential buyers to see themselves living in that home – it creates lifestyle aspirations that buyers will want to obtain for themselves,” he says.

To create this aspirational lifestyle, there are a few simple things sellers can try. Below, RE/MAX of Southern Africa suggests five easy ways to stage the home yourself:

1. Declutter

Your home must be clean, inviting, and exciting for potential buyers to view. Declutter and pack away unnecessary items. Buyers should be able to focus on the home and what it has to offer, rather than its contents. Cluttered rooms will feel smaller and overcrowded. Ideally, you’d want to reduce the home’s contents by about half. Hiring a storage unit while the home is on the market will help in storing unwanted pieces.

2. Keep it clean

With fewer items in the home, it’ll be easier to keep the home clean. An emptier home makes it easier to have the carpets professionally cleaned, which will make a big difference to how the home looks and smells. Washing the curtains will also add a pleasant aroma to the home. Fresh or new bedding will go a long way in sprucing up the bedrooms and getting them to look their best.

3. Introduce pleasant scents

Be conscious of the way the home smells because it can have an impact on the sale of the home. Good smells conjure up positive emotions, while bad odours will put potential buyers off. Nothing beats the smell of freshly brewed coffee or freshly baked cookies on a show day.

4. Wall art and natural light

Invest in wall art and pay attention to the Feng Shui of the rooms. Each room should be as bright as possible and should not hinder the natural walking paths and flow of the home. When buyers can to view the home, keep the curtains or blinds open to let in as much natural light as possible.

5. The devil is in the detail

Sometimes subtle, well-planned changes can make the biggest impression, such as a sparkling blue swimming pool or a freshly mowed lawn. A nice touch is some fresh flowers on display or a welcome mat – all these little things combined will add to the appeal of the home and impress potential buyers.

Original Article: https://www.myproperty.co.za/news/market-and-opinion/5-easy-ways-to-stage-your-home-yourself-14-07-21

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Things to avoid when selling

When it comes to placing a home on the market, avoiding costly mistakes is crucial as this can have a massive impact on a seller’s financial well-being going forward.

To help sellers conclude successful transactions that pave the way for future financial security, RE/MAX of Southern Africa has compiled a list of some of the common mistakes that sellers have made in the past, to help sellers avoid making the same mistakes in the future:

Going the “private sale” route

There is more to selling a property than listing it on a portal and waiting for the right buyer to come across it. It can be a complicated and intricate process that can land sellers in some serious legal trouble if handled incorrectly. Having a real estate professional on hand to negotiate with the buyers and manage all the contracts and paperwork can prove invaluable.

While it might be tempting to go it alone to avoid an estate agent’s commission, working with a trustworthy real estate professional will ensure that the home is sold for the best possible price within the shortest possible time.

The longer a home stays on the market, the lower it ends up selling for. While doing a private sale might save you tens of thousands in commission, it could end up costing you hundreds of thousands off the asking price.

A professional agent from a reputable brand will add substantial value to the transaction. Among other things, they will provide a valuation, advice and all the additional data you need to ensure the property is correctly priced to sell. They will also market the property to the correct type of buyer from their database of potential buyers.

Leaving room for buyers to negotiate

Many sellers overprice their home from the outset in an attempt to counteract buyers trying to negotiate the price down. However, instead of giving themselves a cushion, inflating the price chases away buyers and has the home sitting on the market for longer than necessary.

Buyers who could afford the home at its true market value will overlook it at its inflated value because it falls outside of their budget. Likewise, those who can afford the inflated price will soon realise that the home does not compare to others in the same price bracket.

A savvy agent can help the seller set the best, most competitive price for their home based on other recent sales and local market trends. They will also negotiate on the seller’s behalf to ensure that buyers put their best offer forward.

Forgetting to consider the bigger picture

When selling a property, it is important to keep things in perspective. While it might be easy to get stressed out by the costs of the pre-listing repairs and upgrades, these costs will be insignificant against the full profit once the home is sold.

On the other hand, it is also easy to falsely believe that the full listing figure will be in the seller’s bank account once the property is sold. Sellers should, however, do a quick calculation to work out how much profit will be left from the sale after the various selling costs are covered (e.g. agent’s commission, Capital Gains Tax, bond cancellation fees, etc.) as well as the initial capital outlay is subtracted from the eventual selling price.

The home might have sold for R2 million, but the seller’s profit on that might only amount to R500,000.

“While selling a home can be daunting, avoiding the above mistakes will help to ensure that the process of selling the home is less stressful and that the end result will bring about greater financial prospects for the seller,” concludes Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.

Original Article: https://www.myproperty.co.za/news/market-and-opinion/things-to-avoid-when-selling-08-07-21

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Things to avoid when selling

When it comes to placing a home on the market, avoiding costly mistakes is crucial as this can have a massive impact on a seller’s financial well-being going forward.

To help sellers conclude successful transactions that pave the way for future financial security, RE/MAX of Southern Africa has compiled a list of some of the common mistakes that sellers have made in the past, to help sellers avoid making the same mistakes in the future:

Going the “private sale” route

There is more to selling a property than listing it on a portal and waiting for the right buyer to come across it. It can be a complicated and intricate process that can land sellers in some serious legal trouble if handled incorrectly. Having a real estate professional on hand to negotiate with the buyers and manage all the contracts and paperwork can prove invaluable.

While it might be tempting to go it alone to avoid an estate agent’s commission, working with a trustworthy real estate professional will ensure that the home is sold for the best possible price within the shortest possible time.

The longer a home stays on the market, the lower it ends up selling for. While doing a private sale might save you tens of thousands in commission, it could end up costing you hundreds of thousands off the asking price.

A professional agent from a reputable brand will add substantial value to the transaction. Among other things, they will provide a valuation, advice and all the additional data you need to ensure the property is correctly priced to sell. They will also market the property to the correct type of buyer from their database of potential buyers.

Leaving room for buyers to negotiate

Many sellers overprice their home from the outset in an attempt to counteract buyers trying to negotiate the price down. However, instead of giving themselves a cushion, inflating the price chases away buyers and has the home sitting on the market for longer than necessary.

Buyers who could afford the home at its true market value will overlook it at its inflated value because it falls outside of their budget. Likewise, those who can afford the inflated price will soon realise that the home does not compare to others in the same price bracket.

A savvy agent can help the seller set the best, most competitive price for their home based on other recent sales and local market trends. They will also negotiate on the seller’s behalf to ensure that buyers put their best offer forward.

Forgetting to consider the bigger picture

When selling a property, it is important to keep things in perspective. While it might be easy to get stressed out by the costs of the pre-listing repairs and upgrades, these costs will be insignificant against the full profit once the home is sold.

On the other hand, it is also easy to falsely believe that the full listing figure will be in the seller’s bank account once the property is sold. Sellers should, however, do a quick calculation to work out how much profit will be left from the sale after the various selling costs are covered (e.g. agent’s commission, Capital Gains Tax, bond cancellation fees, etc.) as well as the initial capital outlay is subtracted from the eventual selling price.

The home might have sold for R2 million, but the seller’s profit on that might only amount to R500,000.

“While selling a home can be daunting, avoiding the above mistakes will help to ensure that the process of selling the home is less stressful and that the end result will bring about greater financial prospects for the seller,” concludes Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.

Original Article: https://www.myproperty.co.za/news/market-and-opinion/things-to-avoid-when-selling-08-07-21

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Blog

Things to avoid when selling

When it comes to placing a home on the market, avoiding costly mistakes is crucial as this can have a massive impact on a seller’s financial well-being going forward.

To help sellers conclude successful transactions that pave the way for future financial security, RE/MAX of Southern Africa has compiled a list of some of the common mistakes that sellers have made in the past, to help sellers avoid making the same mistakes in the future:

Going the “private sale” route

There is more to selling a property than listing it on a portal and waiting for the right buyer to come across it. It can be a complicated and intricate process that can land sellers in some serious legal trouble if handled incorrectly. Having a real estate professional on hand to negotiate with the buyers and manage all the contracts and paperwork can prove invaluable.

While it might be tempting to go it alone to avoid an estate agent’s commission, working with a trustworthy real estate professional will ensure that the home is sold for the best possible price within the shortest possible time.

The longer a home stays on the market, the lower it ends up selling for. While doing a private sale might save you tens of thousands in commission, it could end up costing you hundreds of thousands off the asking price.

A professional agent from a reputable brand will add substantial value to the transaction. Among other things, they will provide a valuation, advice and all the additional data you need to ensure the property is correctly priced to sell. They will also market the property to the correct type of buyer from their database of potential buyers.

Leaving room for buyers to negotiate

Many sellers overprice their home from the outset in an attempt to counteract buyers trying to negotiate the price down. However, instead of giving themselves a cushion, inflating the price chases away buyers and has the home sitting on the market for longer than necessary.

Buyers who could afford the home at its true market value will overlook it at its inflated value because it falls outside of their budget. Likewise, those who can afford the inflated price will soon realise that the home does not compare to others in the same price bracket.

A savvy agent can help the seller set the best, most competitive price for their home based on other recent sales and local market trends. They will also negotiate on the seller’s behalf to ensure that buyers put their best offer forward.

Forgetting to consider the bigger picture

When selling a property, it is important to keep things in perspective. While it might be easy to get stressed out by the costs of the pre-listing repairs and upgrades, these costs will be insignificant against the full profit once the home is sold.

On the other hand, it is also easy to falsely believe that the full listing figure will be in the seller’s bank account once the property is sold. Sellers should, however, do a quick calculation to work out how much profit will be left from the sale after the various selling costs are covered (e.g. agent’s commission, Capital Gains Tax, bond cancellation fees, etc.) as well as the initial capital outlay is subtracted from the eventual selling price.

The home might have sold for R2 million, but the seller’s profit on that might only amount to R500,000.

“While selling a home can be daunting, avoiding the above mistakes will help to ensure that the process of selling the home is less stressful and that the end result will bring about greater financial prospects for the seller,” concludes Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.

Original Article: https://www.myproperty.co.za/news/market-and-opinion/things-to-avoid-when-selling-08-07-21

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Debunking common real estate myths

There are a number of preconceived notions that home buyers and sellers often believe about the real estate industry and the sale transaction, and whilst some may be founded on fact, others are very far from the truth.

So says Steve Thomas, Secure Estate Specialist team for Lew Geffen, Sotheby’s International Realty in Cape Town’s Southern Suburbs, adding that, as with all myths, most preconceived ideas are largely anecdotal and easily perpetuated.

“A myth can be defined as ‘any invented story, idea, or concept’ and that is exactly what many of the misconceptions about our industry are; notions that have become entrenched through their retelling over time.

“And although some of these tall tales may be harmless, others can severely hamper a buyer’s or seller’s success and can easily lead to errors in judgement which can prove costly, both in time and money.”

Below, Thomas addresses the most common misconceptions, explaining the potential pitfalls of adhering to them and clarifying the facts:

1. Overpricing a home result in achieving a higher sale price

When potential buyers begin their search for a new home, it’s usually online and they will filter their search to select properties that suit their needs and are within their budget range. In other words, they comparison shop, and compare all the similar properties in their preferred areas.

And the homes that usually make it onto shortlists are those which not only tick the most boxes but also offer the best value for money. This is especially true in a buyer’s market where investors are spoilt for choice and an overpriced property can easily be ignored.

So not only will it take longer to sell, buyers will notice that your property has been on the market for some time and will begin to wonder what’s wrong with it. You may eventually end up selling for less than you would have had you entered the market with a realistic price.

I cannot emphasise this enough, especially in the current market – correctly pricing a home within its market is key to realising a quick sale at the best possible price.

2. A quick offer means the property was priced too low

Having one’s home on the market is at best an inconvenience and often downright disruptive as it has to be kept neat and tidy and ready to view at all times. And potential buyers will often want to view at an awkward time, like in the evenings when it’s dinner time and bath time for the kids.

Yet despite the disruption, it’s not uncommon for buyers to be less than thrilled when they receive an offer very soon after listing and to start questioning the agent’s valuation and wonder if they are being short-changed.

However, in most cases, it’s in fact quite the opposite. After extensive comparison shopping online, serious buyers will have seen everything that’s for sale in the area and have a good idea of pricing, so when they see a new listing that meets their needs and is priced right, they’ll immediately enquire and request a viewing.

3. Open houses are essential to selling your home

Back in the day when the only way to advertise a property was in the weekend newspapers with just one grainy photo and a brief description and the only way to view it was in person, open houses were essential.

However, with digital technology now allowing us to advertise homes in much more detail with multiple photos and even virtual walk-throughs, most serious buyers will compile a shortlist after an online search before contact the agents to view by appointment.

And, although it’s certainly not impossible to make a sale at an open house, it’s becoming increasingly rare as they generally attract nosy neighbours, those with nothing else to do on Sunday afternoons and people who are thinking of possibly buying but ‘just looking’ for now.

4. Agents will say and do anything to close a deal

It’s certainly true that the most successful agents are those with a gift of the gab and a talent for selling; those who are able to highlight the best features of a property and help prospective buyers visualise living there. And, yes, this enthusiasm can be misinterpreted by some.

And, like in any industry, there will always be a few charlatans trying their luck, but they are very few and far between and don’t last very long, especially in reputable, established agencies.

Not only are agents held to a very strict code of conduct with a multitude of rules and regulations with which to comply, but they also rely heavily on referral and word-of-mouth business as well as repeat business and those who are less than ethical and professional will soon fall by the wayside.

That said, in an “open mandate” scenario where several agents are competing to sell the same property, most agents would be keen to close the deal before his or her competitors, and whilst most will still strive for the best price, they may not push as hard as they could for fear of losing the sale.

5. The real estate agent offering the lowest commission is the best option

Yes, times are tough and it’s understandable that many buyers want to negotiate the commission rate and most agents will oblige. However, if an agent offers to significantly reduce their commission upfront, it should be regarded as a red flag.

It takes many long hours of work over several months to sell a home from listing to transfer, requiring a comprehensive marketing plan, reams of paperwork, and a thorough understanding of the financial and legal aspects of the transaction.

Furthermore, a good agent will negotiate on your behalf to achieve the best possible sale price and will strive to protect your interests at every point. In other words, they earn their commission and they know their worth, and are unlikely to slash 50% off the rate.

So, when an agent is quick to discount their commission by a significant amount or to use a low commission rate as their sales pitch in order to get the business, there is a good chance that the buyer loses rather than gains. Will there also be a reduced marketing budget – and how quickly he/she will settle on a sale price during negotiations just to close the deal?

We also often see poor competition from the heavily discounted agencies where an agent simply isn’t motivated to perform. Remember that from the agent’s commission, there are franchise fees, PA and referral commissions as well as marketing costs to cover which can leave very little at the end of the day.

6. You can completely rely on online valuations

The internet has revolutionised the way in which we live and work and the convenience of instant access to information has transformed most industries, including the real estate sector.

But, although some things, like the initial search for a new home, can confidently be done online, the human element is still critical in other steps in the sale/purchase process.

This is especially true when it comes to property valuations and pricing. If you are thinking of selling and looking for an approximate estimate of the value of your property, then popping online is a quick and easy solution.

However, once you decide to sell, an accurate, market-related valuation is critical and none will be more accurate than those compiled by an experienced agent with a solid track record of local sales and a thorough knowledge of the market in your area.

7. Home improvements pay for themselves

Whilst certain upgrades and improvements can significantly increase the value of a property, not all improvements are equal and there is a very real possibility of over-capitalising.

It’s therefore essential to do your homework and the first step is to establish the current value of your home as well as property prices in your area as neighbourhoods generally have a ceiling value – the threshold up to which buyers and renters are willing to pay.

Also, take the time to find out what trends and home features are most popular and those which are considered undesirable.

8. A home doesn’t need to be prepped for sale – it will sell itself

The truth is that even a brand-new build that has never been lived in will attract more interest if staged with furniture. And no matter how stunning a home may be architecturally; it still needs to be cleared of clutter personal effects so that prospective buyers can more easily imagine themselves living in the space.

It’s not necessary to spend a fortune on major upgrades, but there are few properties that wouldn’t benefit from a fresh coat of paint, having the garden tidied and a vase of fragrant flowers placed in the entrance hall.

Thomas concludes: “It’s important to remember that the decision to buy a home is not only a financial one; it’s strongly influenced by emotion and it’s therefore essential to engage buyers emotionally by highlighting your home’s best features and making it as appealing as possible.”

Original Article: https://www.myproperty.co.za/news/market-and-opinion/debunking-common-real-estate-myths-28-06-21

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What you need to know before investing in property with friends

When unable to afford the purchase on one’s own, co-owning an investment property with friends or family can result in favourable returns. Yet, as with any investment, it is vital to conduct thorough research to ensure that it is a wise decision.

“The benefits to co-owning an investment property are clear: less individual financial outlay and larger financial backing in case something goes wrong. But there are also some serious downsides to this situation that buyers need to consider before going ahead with the purchase,” cautions Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett.

The main downside is the shared responsibility of keeping up with the repayments. “You want to ensure that you won’t be left covering the costs if your partner/s suddenly find themselves unable to contribute financially, or vice versa. To avoid issues around this, be sure to set up as detailed of an agreement as possible around the financial responsibilities of each party involved in the purchase,” Goslett recommends. 

Similarly, all parties ought to be informed of the ongoing responsibilities they each hold towards managing and maintaining the home. “When investing with others, the workload of purchasing and managing the home can and should be divided up fairly. At the very beginning, agree to who will be responsible for managing all the paperwork during the purchasing process, who will be liaising with property managers, paying the municipal rates & taxes, dealing with repairs and other similar tasks. Doing so will avoid arguments later down the line,” he recommends.

Goslett also tells investors to ensure that everything is properly recorded for tax purposes. “It’s important to have a clear understanding of how tax will be calculated on the rental income that is split between each investor. I would strongly recommend that investors seek professional advice on their legal and tax obligations when splitting ownership of a property.”  

Lastly, Goslett says that it is important to be on the same page regarding what everyone had in mind for the property. “It is vital all investors are on the same page regarding what they each hope to achieve with the property. Investors should discuss among themselves whether they plan to sell in a few years or to hold on to the property for longer. They need to know if the goal was to have a long-term source of passive income or whether the goal was for one of the parties to eventually move into the home, for example. Understanding others’ expectations for the property should help to avoid future conflicts,” says Goslett.

After taking all the above into consideration, there is no reason why expanding your property portfolio with others should not be a fruitful undertaking. To provide an even greater chance of success, Goslett recommends engaging with an experienced property manager who can help take the stress of managing the investment on the various investors’ behalf.

“Enlisting the help of a real estate professional can serve multiple purposes. For one, it takes the responsibility of managing the home off the investors’ shoulders. Beyond this, the agent can also act as a neutral third party, which can prove helpful if and when conflicts arise between investors. As a final benefit, a real estate professional can help investors find a sound investment opportunity and match them with a reliable tenant. This will set them up for greater financial success in the long term,” Goslett concludes.

Original Article: https://www.myproperty.co.za/news/legal/what-you-need-to-know-before-investing-in-property-with-friends-24-06-21

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Load shedding – Why you should test your alarm battery

Against the backdrop of several rounds of load shedding in recent days, a warning has been issued for homeowners and business owners to test the battery systems for the alarm and security systems they use.

“We recommend that people test these systems on a regular basis, but this has become more important now than ever before. The battery backup is a crucial element that needs to be tested, to give you the ease of mind that it will still offer monitoring and protection when the power goes out,” says Charnel Hattingh, Head of Marketing and Communication at Fidelity ADT.

“If you have a stable and correctly programmed security system coupled with a battery that is in a good condition, it will continue to protect your home or your place of work during any power outage.”

The increased occurrence of load shedding means more alarm activation signals are received by armed response companies than usual.

“If the alarm is triggered because of a power surge or because of load shedding, please contact your security company as soon as possible to cancel any false alarms. This helps ensure that armed response officers are allocated to legitimate emergencies. We have introduced an automated call centre ‘agent’ to make it easier for customers to quickly cancel false alarms, which also frees up call centre staff members to concentrate on legitimate emergencies,” says Hattingh.

The only time any alarm system might not function correctly is if there is a technical issue, or the battery power is low.

“Most modern alarm systems have a back-up battery pack that activates automatically when there is a power failure. We recommend considering an additional battery backup pack, as load shedding puts additional strain on the battery,” she says.

She adds that there are a number of practical steps that can be taken to ensure security is not compromised during any power cuts:

  • Always remain vigilant, and report suspicious activity in your suburb to the SAPS
  • Ensure that all automated gates and doors are secured
  • With the added inconvenience of the lights going out at night due to power cuts, candles and touch-lights are handy alternatives
  • Test the battery backup system and consider an additional battery pack for standby. Tests of alarm systems should ideally be conducted every six months
  • Power cuts can impact on fire systems and fire control systems, so these also need to be checked regularly
  • The more frequent use of gas and candles can increase the risk of fire and home fire extinguishers should be on hand

“The best approach is to test your alarm system – for your home and your business – today, and to make any fixes that are required as soon as you can,” says Hattingh.

Original Article: https://www.myproperty.co.za/news/market-and-opinion/load-shedding-why-you-should-test-your-alarm-battery-14-06-21

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3 steps to avoid buyer’s remorse

Becoming a home owner is such a huge moment and the whole process of moving in and settling in can sometimes overshadow home buyer’s remorse – which does happen and is not spoken about enough in real estate.

When the property market is moving fast, buyers rush to make decisions, and sometimes these rush decisions could lead to buyers, especially first-time buyers, feel that sinking feeling that can be avoided if you stick to three basic rules.

Here, we share our best tips to help you avoid buyer’s remorse on what is likely to be the biggest purchase of your life.

Budget and then go lower

Shopping too close to what you can afford might not leave enough room to actually live comfortably within your means. If you can afford to buy a home in the R1,5 million bracket consider shopping around in brackets a R100 000 less as well – you will have more money at the end of each month if you use the extra money to put into your deposit as it will result in a smaller bond repayment.

If you are not stressing about bond repayments, you will have more time to enjoy your new home.

Get everything inspected

It might seem like another expense on top of an already costly process, but getting your dream home inspected by a professional home inspector will ensure that you don’t buy something that is going to be a money-pit.

Having a licensed inspector investigate the property will uncover any problems with the foundation, pipes, electrical work, roof, or other high-priced items. If you opt-out of an inspection, you run the risk of entering a home full of repairs — leading to a bout of buyer’s remorse.

Lists, lists, lists

While the old adage might be location, location, location, we believe in lists, lists, lists when it comes to avoiding buyer’s remorse. When you’re buying a home, make sure you’ve got a list of your “must-haves” and “would be nice to have” features.

For instance, if you work from home, space for a home office might fall into the must-have category. Having a open plan kitchen or a fireplace – those are more of the nice-to-have type of features. Having written this down will help you stay focused.

We know that finally calling yourself a home owner is such a incredible feeling, but making decisions too quickly or based on other people’s opinions will only lead to hating the space you are in. And who wants that! So if you are feeling hesitant, hold off and make your decision with a clear mind.

Found your dream home? Here is how we can help

Make sure you are ready to buy with our ultimate guide to buying a home for first-time buyers or make use of our home loan experts and get prequalified and apply for a home loan

Original Article: https://www.myproperty.co.za/news/market-and-opinion/3-steps-to-avoid-buyer-s-remorse-03-06-21

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Applying for a home loan? Ask these financial questions

Before a home loan is approved, banks and other financial institutions will perform extensive research on your financial history – making financial preparedness vital.

If you are getting ready to apply for a home loan, you need to assess your financial wellbeing and you should know the answers to the following questions:

What is my credit score?

Would-be homebuyers should know their credit score and check their credit record to ensure that everything is in order. It is possible for negative credit information to be recorded by mistake.

Checking your credit record before applying for finance will allow you time to rectify any mistakes that could harm your bond application success. Consumers are entitled to a free credit report each year, so they should be sure to check it.

Any accounts or bills that have been handed over for collection should be paid and sorted out before applying for finance. Defaults or slow payment notifications will have a negative impact on a credit score, so it is important to make payments timeously.

What is my annual income?

The bond amount that a consumer qualifies for will be determined by their income. So it is important to include any bonuses or annual investment returns when making this calculation. Annual tax return documentation will assist you in determining your actual yearly income.

How much debt do I have?

Disposable income is a key consideration when the bank considers the home loan amount they are willing to grant. For this reason, you should try and get rid of debt or at least pay it down as much as possible.

The bank will require applicants to provide them with a list of their monthly expenses to determine the debt-to-income ratio. The ratio will be used as a measurement tool to determine the appropriate bond amount that the applicant can afford.

Having a lower debt-to-income ratio will be highly beneficial to consumers who want higher bonds.

What is my financial worth?

Financial worth is more than just your income. It also relates to any assets owned, such as vehicles, investments, and income-generating properties. All of these aspects add to your net-worth and will have a bearing on the amount that the bank is willing to grant.

What kind of deposit can I put down?

More often than not the bank will require a deposit. The deposit can vary between 10% and 30% of the purchase price of the property depending on the circumstances.

Aside from the deposit, you will also need additional money for the costs associated with buying a home such as transfer fees, attorney fees, and bond costs.

What can I afford?

In an ideal situation, the monthly house payment, which includes the bond, interest, taxes and insurance should not take up more than around 30% of your income before taxes.

It is possible to get an idea of your affordability levels from an online bond calculator or with the help of a financial professional. A bond originator service such as MyProperty Home Loans can also provide valuable guidance as to how much you can comfortably afford.

Found your dream home? Here is how we can help

Make sure you are ready to buy with our ultimate guide to buying a home for first-time buyers or make use of our home loan experts and get prequalified and apply for a home loan

Original Article: https://www.myproperty.co.za/news/market-and-opinion/applying-for-a-home-loan-ask-these-financial-questions-19-05-21

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