What can go wrong when buying a home
Buying a property is a complicated process with many moving parts. Understanding where things might go wrong in this process can help buyers to avoid some of the common pitfalls.
According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, not working alongside a real estate agent can be a costly mistake for buyers. “A good agent brings expertise, market knowledge, and negotiation skills to the table. They can help guide you through the paperwork, coordinate with other professionals, and support you through the entire process. Their assistance can be invaluable, especially for first-time buyers,” says Goslett.
There are many obstacles in the path towards a successful property transaction and a lot can go wrong between signing an offer to purchase and having the home transferred into your name. To help buyers be better prepared 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-approved 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 can be a number of reasons why your bond application could be rejected, but most commonly it has to do with your credit score. Also, if you have changed jobs recently (within the last 6 months), or are self-employed, this will also affect your chances of bond approval.
- Being unprepared for upfront costs
There are a number of upfront costs that need to be paid before the property can be transferred into the new buyer’s name. This includes transfer duty, transfer fees, bond initiations fees, and other associated costs. Depending on the value of the home, this can add up to a large sum of money. To make sure you have enough cash saved up to cover these expenses, use an online calculator to get a rough estimate.
- Skipping a private home inspection
Although this would come at a buyer’s own expense, taking this precaution could save you a lot of money and stress by uncovering all the potential issues with the property before transfer takes place. The compliance certificates that the seller will need to have issued before transfer can occur will cover some of the potential problems, but these won’t reveal all the issues with the home. To make sure 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.
Writer: Kayla Ferguson
