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Avoid Buying Mistakes
Understanding people's eagerness to upgrade or personlise their new homes, he nevertheless cautions prospective buyers to tone down comments regarding knocking down walls, removing trees or turning the formal lounge into a children's games room while in the presence of sellers. "Sellers are often sentimental about their homes and may become stubborn and difficult to negotiate with if you don't show the necessary respect," says Bester.
Not only is it important to reign in one's emotions to reduce the risk of offending the seller but also in order to remain focused since runaway emotions can cloud judgment and create unreasonable expectations, he adds. "Buyers sometimes become fixated on taking possession of an immaculate property. Realistically, however, they need to accept that there are always going to be repairs or alterations that they will need to take care of if they want to avoid upsetting the seller."
Another common mistake made by buyers is denting their financial credibility by making major purchases just prior to buying a property. "The fact that your credit record is in tiptop shape does not mean that now is the time to buy expensive luxuries," cautions Bester. "You may feel that a new big screen television set should be part and parcel of your new home but your bank is likely to disagree. Loans are granted on the basis of income-to-debt ratios, so excessive spending may jeopardise the granting of your bond. It would therefore be better to wait until actually closing the deal and obtaining your home loan before you hit the shops." With this in mind, Bester also suggests leaving job changes until after the purchase of the property.
For those choosing to buy privately, Bester warns against paying any deposits or other monies directly into the seller's bank account. "Sellers sometimes don't grasp the fact that the money is only theirs for the taking once the sale is a done deal," he says. "And even if they do understand this concept, it would be better not to burden them with the temptation of forgetting. Mismanagement of funds by sellers has often placed buyers in a position where they have to fight tooth and nail to reclaim their money. It would be far safer to deposit the money into an attorney or estate agent's trust account under these circumstances."
Another pitfall awaiting overly-trusting buyers and sellers is that of verbal agreements. Bester urges all parties to enter into written agreements to avoid misunderstandings and put them in a more secure position overall. "A contract for the sale of immovable property is not legally valid unless it has been put in writing and signed by both parties. The contract must contain certain prescribed essentials and will, in all likelihood, also contain legal implications that wouldn't otherwise have been drawn to the attention of either party. Any inclusions and exclusions should be contractually penned and in no uncertain terms," he advises, adding that it is imperative for all concerned to read documents very carefully before signing.
In their enthusiasm or ignorance, first time buyers often tend to overlook the obvious, Bester continues. The obvious in this instance concerns applying for utility services such as electricity, water and telephone lines. At the same time, he reminds people on the move not to forget to disconnect the services at their previous homes. "This sounds blatantly obvious but easily gets forgotten in the myriad details that have to be taken care of around the time of a move," he says.
Long before moving in, Bester advises buyers to check that contractually specified repairs have been effected. "This is a visit to make sure that the seller has done the repairs agreed upon and does not constitute your final walk-through, which is recommended prior to the deed changing hands." |
Posted on Monday, April 30, 2007 (Archive on Thursday, May 31, 2007)
Posted by hayleym Contributed by hayleym
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