There is nothing more disappointing than finding your dream home, and then getting outbid by another buyer. According to the Seeff Property Group timing and preparation are usually everything, so be sure to make a compelling offer to avoid losing out.
In a buyer’s market, especially in the high demand price sectors, you may well face competition from other buyers. It is therefore prudent to make a compelling offer and not waste your time.
Buy now, or wait?
Further rate cuts are now largely delayed due to renewed global pressures on inflation and the economy. Many areas are, however, highly favourable for buyers who should take advantage while they can. Waiting too long could see prices rise and more buyers enter the market. The best opportunity to secure a good price is now.
READ: Property buying myths and how to avoid them
How much should you offer?
A competitive price and favourable terms improve the likelihood of the offer being accepted, says Gerhard van der Linde, MD of Seeff Pretoria East. If there is other interest in the house, trying for a lower price could see you lose out. Always put forward your best offer as sellers don’t want time wasters or bargain hunters.
Know what you can buy for?
For Elaine Vandayar, licensee for Seeff Richards Bay, a home loan pre-qualification is vital so that you know what you can realistically afford. You must also ensure you have the cash on hand for a deposit and the transaction costs, and your paperwork is in order so that the deal can move forward quickly.
READ: Buying and selling: How to navigate property timing and find your ideal home
Should you sell before you buy?
Keeping contingencies to a minimum is a big advantage, says Tiaan Pretorius, manager for Seeff Centurion. While you don’t have to sell first, the seller is entitled to continue marketing the property and you could lose out if you are unable to match any new offer. It is therefore best to sell first, especially if the proceeds are needed to finance the new purchase.
Be ready with a counteroffer
Before putting in your offer, you should consider whether you could come back with a higher counteroffer if needed. If there is a lot of interest in the property, it is therefore best to offer as close to, or the full asking price if you have your heart set on the property. The highest offer will generally always win the day.
An Offer to Purchase is legally binding.
Once an Offer to Purchase is accepted by the seller, it becomes a legally binding contract, and you cannot just back out without serious legal and financial consequences. Guard against compulsive behaviour, and ensure you can afford the home, have the funds for a deposit if needed, and cover the transfer duty and costs.
Michelle Vermeulen, licensee for Seeff Queensburgh says prospective buyers should take guidance from the agent regarding what the seller would accept and should not overstretch themselves. A well-crafted offer and a competitive price show you are serious, and could set you on the road to success.
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So how do you rise above the crowd and secure your dream home without overpaying or compromising on your wish list?
According to David Jacobs, Regional Sales Manager for the Rawson Property Group, it’s all about strategy, and standing out in subtle but powerful ways.
“There are a lot of buyers out there who are technically ready to buy but haven’t thought about how to make themselves appealing to a seller,” says Jacobs. “The trick is to be more than just another offer on paper – you want to be the offer that makes the seller feel confident, secure, and maybe even a little relieved.”
Here’s how to do just that:
Be faster than fast – be ready
One of the most underrated tools in a buyer’s arsenal is prequalification.
“A seller is far more likely to consider your offer seriously if it comes with prequalification paperwork,” says Jacobs. “It shows that you’re financially vetted, motivated, and won’t waste anyone’s time.”
Even better? Have your deposit ready to go. While 100% bonds are still available in certain cases, buyers with deposits often get better interest rates – sometimes as much as 2% lower – and come across as more serious.
It’s not enough to just browse online listings. Getting to know local estate agents can give you a front-row seat to new stock – before it hits the online portals.
“We always prioritise buyers who’ve made an effort to build relationships,” says Jacobs. “They’re top of mind when something new comes in, especially if it’s going to move quickly.”
Agents may also alert you to “pocket listings” (properties not publicly listed) or give you the heads-up on properties about to be released – a critical edge in fast-paced areas.
READ: Buying: Why analysing a suburb is as vital as a home inspection
Make flexibility your superpower
Sometimes it’s not the highest offer that wins, it’s the most accommodating one. If a seller is in a rush, offering a short transfer period might help. If they need time to find a new place, being open to a delayed occupation date or even a rent-back arrangement could clinch the deal.
“Flexibility is a big win for sellers,” Jacobs explains. “If you can make the process easier for them, they’ll remember that, even if someone else is offering a little more.”
READ: Affordable starter homes in growing areas
Sweeten the deal with a bigger deposit
While most buyers stick to the standard 10% deposit, offering more upfront – if you’re able – can instantly set you apart.
“A larger deposit reduces the bank’s risk and sends a strong message to the seller that you’re financially solid and highly committed,” says Jacobs. “We’ve seen deals swing in favour of buyers who put down 15% or even 20%, even when other offers were slightly higher.”
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