Buyer Tips
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BUYER TIPS
Buyers often make the "buying process" more difficult for themselves.
If you are in the market to buy a property, read on!
Because we are still in a "seller's market" (which means that it is a good time to sell), it is important that buyers "get their ducks in a row" to avoid disappointment.
There is an abundance of Buyers, and that in turn stimulates prices/offers, making it a favourable time to sell your property (as opposed to a Buyer's Market where there are few buyers), so they have more room for negotiation.
Where buyers often get it wrong is the finance application.
All bond buyers should get pre-qualified long before buying a property.
In the current market, if you are looking to get a bond, using a bond originator is a MUST.
The role of the bond originator is to procure a bond on your behalf. They essentially act as an intermediary between you and the banks, assisting you in compiling one set of paperwork, and then submitting the home loan application to all the major banks on your behalf.
Recently we listed a property, and had over 100 enquiries within one week, and did 50 viewings.
We were able to present six offers to the seller at the end of the week.
The successful buyer was pre-qualified.
The other five offers presented would probably also have got their bond, but the ONLY difference between them getting this property, or missing out (and now having remorse) is that they were not pre-qualified IN ADVANCE!
Being a pre-qualified buyer is the next best thing to being a cash buyer. That way, once the buyer finds their ideal home, they can act quickly and with comfort, knowing that they are pre-qualified.
Why should a buyer use a bond originator?
(In our opinion, it should be compulsory!)
- YOU CAN AVOID MISSING OUT ON YOUR IDEAL HOME when competing offers are assessed.
- YOU CAN TAKE MOST OF THE ANXIETY OR STRESS out of the transaction.
- The buyer can be exposed to more options as they are better informed.
- Generally, an Originator will get better interest rates (which can save you hundreds of thousands of rands over 20 years).
- An expert is dealing with banks for you (it's what they do, every day, day in and day out).
- Less paperwork / admin (once you have obtained your initial information).
- It's FREE!
Here are two more examples:
Example #1
An offer of R8M (full asking price) was received. The buyer is a big hitter but has not been pre-qualified by an originator. Submits an offer and it gets accepted. Ten days later another offer for R8.2M (above asking) was received. Then about five days later another cash offer of R8.7M (R700K above asking) was received. The cash offer put the first offer to terms.
The first buyer was not pre-qualified but was a client with financial means. He literally got his bond with one hour to spare (he was put to terms by the third buyer and had 72 hours then to get his bond).
Based on the discussions we had with the client, and documents obtained we were certain he would get the bond, but he almost missed out on his ideal property.
Had that third cash offer come in one hour earlier, he would have missed out (when he really should not have). Talk about adding unnecessary stress to yourself!
Example #2
A property was listed by three agencies. All went live within 48 hours of each other. Seeff worked their network and database and lined up viewings (even before the photos were received).
Often a sign of a quality buyer is the fact that they are pre-qualified (i.e., financially vetted by a bond originator). Because we had pre-qualifies buyers, and we got them in on one, they submitted an offer which has been accepted. So, the property was clients were taken through on the same day, and their offer was accepted two days later. If they weren't pre-qualified there is a very real chance that they would have missed out on this property.
The three transactions mentioned above literally happened within the space of three weeks. And there are many more instances like these.
The point has been made - getting pre-qualified by using a bond originator appears to be a NO BRAINER!
This is the best advice for anyone looking to buy a property (or even when they sell etc.), especially in this market where time is of the essence.
It is better to go through the initial shlepp of getting your finance information to an originator than to discuss the disappointment of having missed out.
More options: A bond originator will search for a deal that meets your needs. This provides access to a large range of loan options without you having to do any of the legwork. "A bond originator is a very useful partner for the first-time homebuyer," says ooba home loans CEO Rhys Dyer, who explains that these bond experts will assess your financial situation as part of a 'needs analysis', and match your requirements to a wide range of loans from banks and other financial institutions; managing the process right through to settlement.
Better interest rates: The consultant will have access to loan rates as well as fees and charges at his or her fingertips so it's easier to make a straightforward 'apples to apples' comparison of loan costs.
Dealing with banks: Consultants also have good relationships with banks, and can often negotiate a very competitive rate. Banks receive a significant amount of business through bond originators so it's in their best interest to work closely with them.
Less paperwork / admin: Going through a bond originator means you complete only one set of paperwork that your home loan expert then submits to all the major banks. If you were to go about obtaining a home loan without a bond originator, you'd have to complete and submit a set of paperwork for each bank.
Helpful advice: Takes the ANXIETY out of the transaction.
It's free! The best news is that you won't need to pay your bond originator. Instead, they receive a commission directly from the bank on the loans they settle.
Author: Seeff Somerset West
