Property checklist for first-time buyers
Category Newsletter: Lead Article
Buying a property is always a significant investment and naturally more so for first-time buyers. "Getting onto the property ladder is an exciting prospect for anyone, but it can also be daunting which is why it is essential to approach the process with an open mind," says Silvana Dos Reis Marques, Principal of Leapfrog Pretoria East.
She believes that asking the right questions throughout the process is the best way to ensure a smooth and pleasant process. Her advice in this regard is to work closely with a trusted property advisor to help and guide you through the transaction to ensure you get the best deal.
First things first
Some of the most important questions around purchasing property as the ones you need to ask yourself at the outset.
Start by considering your budget - look at how much you can realistically afford to pay towards a bond every month. Also consider ongoing related expenses like property taxes, levies, insurance and maintenance. Financing options are crucial too. Consider getting pre-approval for a bond from your bank so that you have a ballpark figure to work with.
Next consider your ideal location, but also have a second and perhaps even a third option that you're willing to consider. This helps to narrow the search (and very few people actually want to live in their fourth location of choice!), which streamlines the process. Also be clear on your choice of property type. "Here you want to be quite specific. If three bedrooms and a double garage are essential for you, then communicate that with your property agent and make sure you're only viewing properties that match your criteria," Silvana advises.
Property prospects
The fun starts when you start viewing properties that match your criteria and that fall within your budget and your location of choice. But this is also when some very important questions need to be asked.
Do not take the condition of the property at face value. Ask about structural issues - things like condition of the roof and plumbing - and about when repairs were last done and for what issues. "A scrupulous seller - and property agent - will be transparent about issues so make sure to ask. Knowing what some of the potential issues are help you plan for the maintenance and repairs that the property may require further down the line," says Silvana.
Make sure to also ask about the neighbourhood - and the neighbours. Often the best way to gain insight into a neighbourhood is from the locals so ask about the schools in the area, the safety and whatever matters are important to you.
Potential buyers should also ask about the cost of utilities for the property (water, electricity etc), property taxes and, if applicable, rules and fees of the Homeowners Association.
Savvy negotiation
Once you've chosen the one (congrats!), the questions don't stop. "Once you're ready to sign on the dotted line, work closely with your trusted advisor and make sure to understand the terms and conditions attached to the transaction, including the ins and outs of the purchase price and related contingencies," Silvana concludes.
Author: Leapfrog Property Group
