- Getting prequalified gives you an idea of what you can afford, putting you in a strong position when negotiating with the seller.
- An estate agent can help you determine what you should offer.
- If your priority is to secure the home before other potential buyers, rather than to get the best price, then you should be accommodating during the negotiations
You’ve found your dream home and you’re eager to make it your own. But before you can transfer the property to your name; before you can apply for a home loan to finance the purchase; you need the homeowner to accept your offer.
Usually, you’ll be competing with other buyers. But here’s how you can put yourself in the best position to have your offer accepted.
How to make an offer to purchase the seller won’t refuse
Checklist for making an offer on a house
- Get prequalified.
- Get advice from an estate agent.
- Show appreciation for the homeowner’s taste.
- Be accommodating during negotiations.
1. Get prequalified
The prequalification process determines what home loan you will qualify for.
During the process, you’ll be able to check your credit record, which is the primary factor banks will assess before approving a home loan application.
Following pre-qualification, you’ll be granted a certificate that says you’ve qualified for a certain amount.
You can then look for a home that falls within that price bracket, and when you make the offer, you’ll be able to show the seller your certificate to prove you can afford the price of the home. This will strengthen your position with the seller.
You can get prequalified with the help of an expert at ooba Home Loans, or by using our free, online prequalification tool, the Bond Indicator.
2. Get advice from an estate agent
While estate agents are generally seen as an asset to sellers, they can also be a big help to buyers.
An estate agent can provide advice on how much to offer for a house in South Africa.
They’ll investigate prices in the area and market trends.
Ultimately they’ll give you the best chance of making an offer the owner will accept.
3. Show appreciation for the home owner’s taste
Homeowners get emotionally attached to their homes, and that attachment may persist even when they’re selling them.
Complimenting the interior decoration and design of the home shows the homeowner you appreciate the work they’ve put into it. It indicates that you will show the home the same care and attention to detail as they have.
4. Be accommodating during the negotiations
The negotiation process may be the biggest headache, but it’s a critical stage in securing the home.
You can use this as an opportunity to get the best price for yourself, or you can use it as an opportunity to curry favour with the home seller. It’s pretty hard to do both at the same time.
So decide whether your priority is securing the best price or getting ahead of other potential buyers.
Waiving conditions you originally included in the offer to purchase, raising your asking price and agreeing to the seller’s time frame are some ways to get in their good books.
Procedure for making an offer to purchase
- Determine how much you want to offer.
- Submit the offer to the seller, along with any contingencies you want to include, such as the need for a home inspection.
- You and the seller sign the offer to purchase.
- The offer to purchase is a binding agreement, and neither party can withdraw without incurring penalties (unless the other party fails to meet a clause in the agreement).
Once your offer to purchase is accepted, it’s time to apply for a home loan. A home loan comparison service, such as ooba Home Loans, can help you secure the best deal by submitting your application to multiple banks.
The different banks will offer different packages in response to your application. You can choose the best one, with the lowest interest rates.
We also offer a range of tools that can make the home buying process easier. Start with our Bond Calculator, then use our Bond Indicator to determine what you can afford. Finally, when you’re ready, you can apply for a home loan.
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