Most of us seek the financial and psychological security and independency that only buying a home, compared to renting, has to offer. It is usually the biggest investment that a family ever undertakes, so no-one wants to make mistakes when buying a home.
If you are a first-time home buyer, or have not been a home buyer for some time, buying a home can be quite a daunting experience, but it shouldn't. You have definately done many things that were much more difficult than buying a home!
Some people get nervous and overwhelmed just at the thought of hunting for and buying a home. But it's easy! It is basically a ladder of events. One step leads to another. We hope to reveal these easy steps and make your decisions in buying a home even easier. Don't stop reading if you don't "get" something right away. The steps become clearer as you view the bigger picture.
When you realize the advantages of buying instead of renting, you will hardly be able to wait to find your own home. You can start browsing at show houses immediately, but there's some homework for you to do before actually buying:
Homework
You have to find out what you can afford, what you need from a home, what you would like from your new home and how you should own it, before going house-hunting.
Choosing An Agent
The next step is to contact a real estate agent or several real estate agents. You should be open and honest with your chosen agent, because the information you give him/her will determine the type of property they will introduce you to and thehelp he/she can offer you. Be sure to choose a reputable agent and be prepared to view as many properties as it takes to find your ideal home.
Making An Offer
The next step is to make a written offer to purchase your dream home.
An offer to purchase immovable property is a written document containing information on the property, the buyer, the seller, the offer price, date of occupation, occupational rent, and any special conditions. Every sale of immovable property must be in writing. A verbal offer is invalid.
This "offer to purchase", "Agreement of Sale", or "Deed of Sale" document is the written agreement containing the terms and conditions under which you consent to buying a home. The real estate agent will complete anOffer To Purchase document with you. Your Offer To Purchase document becomes the contract of sale as soon as the seller accepts and signs it. It is very important that you understand all the clauses it contains and the implications thereof. A good real estate agent will explain each clause in detail.
The agent will submit your offer to the seller and explain the terms in detail. The seller can exercise one of three options: He can accept, reject or counter your offer. A counter offer is a totally new offer that cancels your previous offer to purchase. The seller, in effect, offers his house to you at the terms set out in the new offer document.
You now have the same options available to you, when the counter offer gets submitted to you: You can accept, reject or counter the offer.
Negotiation is an important part of buying a home. It is important to be willing to negotiate on all aspects of the sale. The price is not always the most important thing in the contract. By placing yourself in the seller's position, you can imagine what his motivations might be. If the sellers needs to move very soon, an offer that allows them to do so might be more attractive than an offer for R5 000 more.
It is important for you to realize that the real estate agent usually represents and protects the interests of the seller, with a due regard for those of the buyer. Don't hesitate to draw on advice and assistance from a knowledgeable and experienced advisor.
The real estate agent will provide copies of the signed contract of sale to the buyer and the seller, while the original contract goes to the transferring attorney, usually appointed by the seller.
Once you have signed the offer to purchase, the real estate agent must present it to the seller. If the seller accepts it, you have a binding contract of sale.
The "cooling off" period
If you are buying a house or apartment or other residential property in your own name, and the price is R250 000 or less, you will be entitled to a 5-day 'cooling off" period, during which you can reconsider your offer and cancel it, if you want to, without being in breach of contract. The following conditions apply:
- you must be a "natural person", not a company, a close corporation or a trust
- you must be buying for yourself, not on behalf of someone else
- notice of cancellation of the contract must be in writing and must be signed
- notice must be delivered to the seller within five days after signing the offer to purchase - this excludes the day on which the offer was signed, and any Saturday, Sunday and public holiday
- if, during the "cooling off" period, you sign an offer to buy another property with the same real estate agent, it automatically cancels the offer to buy the first property - unless you want to buy both
- if you have paid any money, such as a deposit, the seller's transferring attorney or real estate agent holding it in trust, must refund it in full.
You will not have the right to the "cooling off" period if:
- you are buying on behalf of another person or a company, close corporation or trust
- the property is being sold by auction
- you and seller have already signed a similar contract for the sale of the same property
- you are exercising an option to buy, which has been open to you for at least five days.
Applying For A Mortgage Bond
When the offer is accepted and signed, you would normally apply for a home loan or mortgage bond. If you haven't applied for home loan pre-approval, or if you would like to find the best home loan package the various banks have to offer, the estate agent might be able to assist you.
Some estate agents also act as bond originators, while most others will be able to reccommend a reputable bond originator for you to contact. But remember, it is your decision who you choose to work with!
The Transfer
When the bond is approved and all other conditions have been met, the transferring attorney can proceed with the process of transferring the property to your name.
As soon as transfer is complete, you will be the owner of a new home!
Buying A Home
Buying a home is exciting and should be a happy occasion. Whether you are buying your first, second or third home, there is a lot to be considered, but its definately not difficult!
Your real estate agent is ready to help you with all the advice and support you need. Good real estate agents are dedicated to finding new ways to make your home purchase an easy and joyous experience.
