Buying a property is a complicated process with many moving parts. Understanding where things might go wrong in this process can help buyers avoid common pitfalls.
According to Adrian Goslett, the regional director and CEO of RE/MAX of Southern Africa, not working alongside a real estate agent can be costly for buyers.
“A good agent brings expertise, market knowledge, and negotiation skills to the table. They can help guide you through the paperwork, co-ordinate with other professionals, and support you through the process. Their help can be invaluable, especially for first-time buyers,” says Goslett.
There are many obstacles on the path to a successful property transaction, and much can go wrong between signing an offer to purchase and having the home transferred into your name. To better prepare buyers for these potential pitfalls, RE/MAX of Southern Africa shares some of the most common roadblocks.
• Being rejected for a home loan
A common mistake is not getting pre-approval for a home loan before starting the home search. Pre-approval gives you a clear idea of what you can afford and reduces the risk of rejection when you officially apply for home finance.
There could be several reasons for a bank to reject your bond application, but most commonly, it involves your credit score. Also, if you’ve changed jobs recently (within the past six months) or are self-employed, this will affect your chances of bond approval.
• Being unprepared for upfront costs
Before completing a property transfer, several upfront costs must be paid into the new buyer’s name, including transfer duty, transfer fees, bond initiation fees, and other associated costs. Depending on the home’s value, this can add up to a large sum. To ensure you have enough cash saved to cover these expenses, use an online calculator like the one on BetterBond’s website to get a rough estimate.
• Skipping a private home inspection
Although this would come at a buyer’s expense, taking this precaution could save you much money and stress by uncovering all the property’s potential issues before the transfer happens. The compliance certificates the seller will need to have issued before the transfer can occur will cover some potential problems, but these won’t reveal all the issues with the home.
To ensure you are not caught off guard by hidden problems like structural damage, low water pressure, or roofing issues, it is advisable to hire a contractor to inspect the home beforehand. Buying a home is a complex process with many potential pitfalls.
Goslett says that by being aware of the common issues and taking proactive steps to address them, you can navigate the journey more smoothly and make a decision that brings long-term satisfaction and financial stability.
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