Six frequently asked property questions
Category Advice
Over the last few years, property experts noted an increase in property prices, and a growing demand for property ownership. For many in the market, it is their first time investing in a property of their own, and naturally potential buyers have many questions for agents. The same goes for sellers who are looking to put their properties on the market.
We spoke to Leapfrog agents around the country to find out what some of the top questions were.
How do I know what my property is worth?
This is one of, if not the most frequently asked question. According to Silvana Dos Reis Marques, Franchisee at Leapfrog Pretoria East and Irene, valuating your property is one of the first steps to take before putting your property on the market.
"Now more than ever, we need sellers to be flexible with their prices. Thanks to the internet age, coupled with the pandemic, buyers have become more savvy in the property market," comments Dos Reis Marques. "Information is available everywhere, and thus potential buyers have more access to property trends and determining value than before."
Leapfrog has trusted property advisors that are able to estimate your property's worth. The value of your property will be determined by a number of factors, including industry trends, the area your property is in and the state of your property.
What is an offer to purchase?
An offer to purchase is a legally binding document that outlines the terms of the agreement related to the property in question. If both the seller and buyer are happy with the terms and conditions stipulated in the contract, it becomes legally binding once signed. If the buyer chooses to counter anything in the agreement, they are able to send through a counter offer - this will need to be agreed upon by the seller.
Before signing an offer to purchase, you need to be 100% sure that you are willing to purchase this property.
How do I choose an area to invest in?
This is an interesting question, and is dependent on your needs as a potential buyer. Are you looking for a property to live in, or do you plan on earning passive income by renting it out? Factors like these play a big role in where you would choose to invest.
In a nutshell, South Africa is a great place to invest, and if you are looking for an investment to rent out to holiday makers, a coastal town is always a great place to start looking. Additionally, if you are interested in rental income, look at metropolitan areas like Johannesburg or Cape Town's CBD.
Speak to a trusted property advisor about your needs, affordability and investment goals to find the best area to make your investment in. At the end of the day, property investment is a personal decision, so take the time to properly consider what is best for you.
Do I have to do home repairs before putting my house on the market?
Lots of potential buyers will look for a property that is ready to move in. Very seldom do we find buyers who are interested in taking the time and extra money to fix up a property before moving in.
If your budget allows, take the time to fix up the areas in your home that you think would make it more appealing to potential buyers. Oftentimes smaller cosmetic repairs make a difference in valuing your home. Consider a fresh coat of paint (both inside and outside), or perhaps new cupboard door handles to give your home a renewed feel.
What is the difference between an open mandate and a sole mandate?
When selling your property, this is an important decision to make. An open mandate means that you are giving multiple agencies or estate agents the opportunity to market your home. In this case, the agent that closes the deal receives the commission.
A sole mandate is when only one agency or estate agent is mandated to market and sell your property. You should have an agreement drawn up that clearly stipulates the agreed commission, selling price of the property and the duration of the sole mandate. Should this time lapse without your property being sold, you can enlist another agent, or choose to have an open mandate.
What happens after the bond is granted?
Once a bond is granted, a bond attorney is assigned. They are instructed by the bank to register the property at the deeds office, and the seller advises the transferring attorney to transfer the property. Once this is complete, the bond attorney liaises with the cancellation attorney, ultimately resulting in the seller's bond being cancelled. The buyer and seller then sign the transfer documents. Once all documents are signed, and the buyer pays the transfer fees, the transfer, new bond and cancellation bond documents are prepared for lodging at the Deeds Office.
This whole process takes about 10 weeks.
Have any questions about property? Reach out to us at publicrelations@leapfrog.co.za.
Author: Leapfrog Property Group
