Thabo and Leratho have a lot of stuff, which barely fits into the two-bedroom townhouse they bought five years ago. They have enjoyed staying there, which is the main reason they have not gone looking for a bigger place to live. But yesterday, the couple got the great (and terrible) news:
Leratho is pregnant! They will be having their first child in about 7 months' time!
Reality check: Where will they put the baby? Under the desk in Thabo's study?!
It has become time for Thabo and Leratho to get a new home. And things have to happen quickly! They keep their wits, even in all the excitement, and think things through:
If they sell first, they'd have a better idea of what they could buy. But if they sell first and can't find a new home, the new baby wouldn't even have a cluttered room to sleep in! So, they decide to go look at houses for sale before putting their property in the market.
The first real estate agent they talk to has "a lot" of places she can show them. She takes them to view two places they don't like, but when she hears that they are planning to sell their current home, she wants to list their home for sale immediately.
"It is always better to sell before you buy!" she advises. But Thabo and Leratho have a niggling feeling that the agent is not giving them the whole picture, so they do a bit of homework before jumping in at the deep end.
They learn that South African real estate agents usually represent the sellers in a property transaction, which is great - because they will be selling their home soon. But they have to look far and wide to find a real estate agent who is willing to represent their best interests, as buyers, first.
The agent they found prefers working with buyers and is not afraid to negotiate with sellers' agents. She suggested that they prepare for selling their townhouse so long, even though they have not found a new place yet, because that would make the buying process so much easier.
Their buyer agent knows the agent they spoke to first. She is great at representing sellers, so they ask her to prepare a comparative market analysis for their home, after speaking to three of her current clients.
In the mean time, the buyer's agent identifies the couple's needs and wants for their new home. She thinks of all kinds of things Thabo and Leratho never even considered, such as the proximity to good schools, future developments nearby, the distance and traffic on the way to work, etc.
Their buyer agent also knows exactly what criteria the banks use to evaluate loan applications and is able to give them a good idea of what they can afford to spend on their new house. She insists that they apply for mortgage pre-approval, so that they can improve their offer to purchase, once they find the ideal home.
They start hunting for a house in earnest. There are so many places to see and so little time!
Their seller agent's market analysis shows that Thabo and Leratho were out of touch with the real estate market and that they should be able to net almost 10% more than they expected for the property. But rather than starting to look for bigger places, the couple decide that that 10% would be a great bonus, if they were able to get the full purchase price. But it would be an even better negotiating tool, if they found themselves in a situation where they had to sell fast.
The seller agent also gave Thabo and Leratho a list of things to do before offering the home for sale. The couple immediately start getting their home ready for the market.
Thabo found a safe, affordable storage facility, where they will store a lot of their stuff. They decide to make work of de-cluttering their place immediately, and the place soon looks three times bigger!
After two weeks of non-stop house browsing, their dream home arrives. It is another townhouse. Thabo will still have his study and the baby will have a room of its own. There is a private garden, which will be for their exclusive use. The levy is a bit higher than some other places they saw, but it pays for garden services and exterior maintenance, and the body corporate's books are in good shape.
Their buyer agent explains all the terms and conditions in the offer document and inserts contingency clauses to protect their interests. Thabo wants to offer a little less, but Leratho will not hear of it. So they make their offer at the full asking price, on the conditions that they are able to obtain mortgage financing and sell their current home.
The seller accepts their offer in principal, but makes a change to the occupation date they wanted. If they accept the counter offer, they would have to sell their townhouse in less than 6 weeks!
They meet with their selling agent, to show her how far they are in preparing the property for sale and to ask her if she thinks it would be possible to sell the place in just 6 weeks. She warns them that they might have to make a price concession, but she is of the honest opinion that she can get the house sold in time.
Thabo and Leratho accept the seller's counter offer, which the buyer agent rushes back to the seller. Then they sit down and plan an intensive marketing strategy with their seller agent, before granting a sole and exclusive mandate.
The clock started ticking as soon as they accepted the seller's counter offer. And the stress and worry started at the exact same time. But Thabo and Leratho could remind each other that they have done all they can. The plan is in place. The townhouse will sell... in time.
At the first show house, their seller agent is able to get two buyers to commit to offers to purchase the townhouse. One is an offer at full price, but the buyer wants an occupation date three months in the future. In the other offer, the buyer accepts the sellers' occupation date, but offers a purchase price of 10% below asking price.
It is unlikely that the transfer of ownership will be registered in time for occupation of the new townhouse, but at least their expenses on the property will be covered, so they won't have to worry about a double mortgage repayment.
Thabo and Leratho are excited to have had two offers on the first weekend. The second offer is within their expectations, but Thabo is concerned that they might be leaving money on the table if they immediately accept the offer.
Leratho just wants to sign. She is clearly getting upset at Thabo's reluctance to accept the offer in front of them.
Their seller agent points out that they both have relevant points: "In the current seller's market, sellers can expect a good price for their property, even if they have a deadline to sell. But the first few days on the market are critical. That is when the most buyers will view the house. So, the offers you get right at the start might just turn out to be the best offers you get. But it is still your decision to..." - and then her cell phone rings.
It is a buyer agent whose clients just made an offer for the property. He is standing at the gate, waiting to deliver it to the sellers' agent!
When the seller's agent explains the terms and conditions, this new offer looks almost the same as the one for 10% below asking price, but this seller is offering a 10% deposit and R200 more occupational interest. A cheque for the deposit is attached to the offer document.
The couple's agent can see that Thabo and Leratho are terribly confused. They don't know if they should hold out for more money, or settle for an "adequate" offer. She can see Leratho's flawless complexion being scarred with worry lines.
She explains that the couple could decide to make a counter offer to all the buyers who made offers to buy the property, but that such an offer would cancel the offers currently in front of them. She explains the game of Flinch, and points out that the odds of winning are in their favour, if they have the stomach to play.
Thabo looks at Leratho.
"We'll accept the third option", he says decisively, reaching for his pen.
Leratho flings her arms around his neck and plants a big wet kiss on his cheek. The "I love you" is a barely audible, teary sigh...
nafi
Real Estate Information