Blog

Downsizing your home can be a great way to avoid the stress of making a mortgage payment that is too high for your income. It is also a way to avoid debt and reduce expanses. But, how does one go about doing it properly?

How to downsize your home correctly

Downsizing your property is not just something for older people. It all depends on where you are in your life and what you have planned for the future.

Long Term Plans

It might be time to let go of your past and embrace the future. Maybe you are no longer gainfully employed, maybe you’re looking for something to invest in and that move would require a large down payment, or maybe you need more privacy in your life.

Also, there are various reasons why moving into a smaller home might not be a good idea for you right now.  This includes whether you’re planning on having a family, or having multiple guests’ sleepover, or you might need an office. All require that you keep the extra space.

Is it Functional

When we are young, we all try to make our lives fit into the spaces we have. However, the lack of homely items was also down to a lack of money. Luckily when you are older and have more room in your budget, you can start buying loads of new things for your house.

You’d be surprised how much you can accumulate in a short time. Taking stock of what you’ve crammed into the storage room and attic can give you an idea of whether you need it or not.

Selling off items that you no longer need means you have more space, but also extra money in your bank account.

Good market conditions

A major contributing factor when downsizing your home is the market conditions.When the prices of homes in your neighborhood are high and there are limited spaces available, you may be able to make more profit by selling yours for higher than market value.

This amount can vary widely, but if your area is going through a positive spell you can really cash in. It is possible to sell your products at the timing you choose and receive a lump sum of cash in return.

What else can you do to ensure your downsizing goes smoothly? 

Getting rid of hidden costs

By downsizing from a large home to a smaller one, you can make some significant monthly savings. There are many hidden costs of owning and maintaining a larger home such as the expense of repairs.

Other hidden costs can take many forms, such as:

• Utilities
• Rent or mortgage payments
• Insurance premiums
• Cost of transportation
• Home maintenance and repairs
• Taxes (property, income, sales)

If you’re currently working through your incurred debt, then downsizing your home is a great way of decreasing your monthly repayment rates.

By reducing your mortgage amounts, you can also start to increase your monthly investments into your retirement fund. By simply increasing your monthly installments early on, you’ll be setting yourself up for a large retirement lump sum later.

In the long run, paying less for your mortgage means being able to pay it off sooner. This will always end up being a great thing for you.

Before you decide to move to a smaller home, let’s review the pros and cons.

Pros and cons of downsizing your home

Sometimes a smaller space is a tempting choice, but it does come with its fair share of pros and cons. If you feel like you need to cut back your overhead, then read the following list of benefits and drawbacks to see if it might be for you.

• You’ll have more cash in your bank account as your mortgage will be less each month. This means you can save some of it for emergencies or use the money on something that you wish to purchase now.
• Less space means you’ll be cleaning a smaller area, which allows you more time to do other jobs. If you’re a person who enjoys going out and not spending time at home, then downsizing is a great option.
• Not only are cheaper utility bills a major advantage, but if you’re moving into a smaller property, the initially higher cost of the larger property can often go towards the downpayment on that smaller home. Less square footage means less electricity and water costing you more money – less is more! 
• When you have less storage, you will naturally spend less on odds and ends like clothes, toys, and books. There’s no space for these products to live in an area that doesn’t have adequate storage solutions.. 
• Reducing stress is often a significant factor in home downsizing. You’ll find that there’s less work and increased free time, but you’ll still have to continue paying for mortgage or rent. Often homeowners who have downsized feel more relaxed afterwards, since they no longer have so much responsibility.

Now, let’s consider some of the disadvantages to downsizing:

• A smaller home means you can’t store all the belongings you possess. This often means you need to give away a lot of your possessions to fit, including large furniture items. 
• When you’re down-sizing, the guest room is one of the first things to go. Some people mourn this loss while others will welcome it with open arms. Whether you need space for guests or an in-law’s visit, we can help your family accommodate their needs.
• Smaller homes will feel cramped when compared to a larger space. Also, when downsizing, you’re also giving up a lot of alone time.
• Downsizing has a less glamorous reputation these days and it’s not an easy decision to make.
• Lastly, moving into a smaller property signals the introduction of a new lifestyle. You might not be ready for it. 

Downsizing is a tough decision; it often happens because you’re looking to make room in your house so you can live a better life. There are many reasons that lead people to this decision, so the change may be personal to you. 

But if you don’t feel like the hassle of listing your house on the market and waiting for someone to buy it, why not sell your home to a cash investor like Sproud.

Mould is never a good sign in your home. Whether you just found it, or knew about it for some time, the thought of putting your home up on the market might have crossed your mind.

But can you sell a home with mould? The short answer is that you can sell a home with mold in it, but you need to disclose it when selling. 

Mould is a common problem in houses , because the amount of moisture in the air can make them susceptible to mould. But when it’s serious, mould causes many issues.

At the end of the day, a home with mould issues will sell for less. 

But before we get ahead of ourselves, let’s go through the steps of selling your home with mould.

Steps when Selling a House with Mould Problems 

As you’d expect when selling a home with mould, it’s not a simple or straightforward process. However, there are some definite things you can do, like:

Get an inspection

Not all mould is hazardous, but the majority of people will assume it is a threat to their health. However, large amounts of mould can cause a lot of damage, but it depends on the type.

• Pathogenic infections can affect both weak and strong immune systems.
• Allergenic is not dangerous in small amounts, but it can trigger allergies as well as asthma.
• Toxigenic mould that contains mycotoxin, which can very harmful to a person’s health.

As a rule of thumb if you can see the mould, there’s no need to get an inspection, but if you’re concerned about what type it is, you can hire a company to swab the mould. 

The next step is to clean it, but when should you hire an expert?

Cleaning mould and when you should call the experts

Once you’ve found where the mould is situated in your home, you can get ready to start tackling it. If you’re looking to save cash, removing the mould can be done easily with a mixture of bleach and small hand scrubbing tools. If you’re not into using chemicals, you can use vinegar, baking soda, and tea tree oil. 

While you can clean up mould, it’s better to solve the underlying issue.Mould feeds on water, so if it keeps recurring it might be because of a leak in your plumbing system. But for those wondering if the contaminated area is larger than 3 square metres, it is better to call in experts. As the potential for the mould to gain more traction is a real threat. Also, having an expert to remove the mould properly the first time will save you loads of time scrubbing.

You should always be sure to complete your own home inspection. You should check the attic or crawl spaces, which are areas that aren’t regularly inspected by an inspector. If mould is detected, the buyer is bound to ask for it to be removed. 

Now that you’ve dealt with the mould, there are still processes to follow during the sales process. 

Disclose the mould issue

No matter whether you’ve dealt with the issue, you should always make sure that the mould is mentioned in the disclosure. It doesn’t matter how large or small it is, you should always make sure that it is stated in the disclosure forms.

If you’re working with a realtor, they will have the knowledge and expertise to fill out your disclosure form for you. They might also offer advice about mould remediation precautions, so it’s a good idea to ask.

To ensure you’ve documented it correctly, you could include:

• Photos of the infestation and what you did to clean it
• A written document outlining what you did
• Reports and receipts if you have got professional help
• And your ongoing effort to dry out the area.

We also recommend that you ask where the waste material is being disposed of, as well as for documents indicating whether the mould is hazardous.

And always ask if the company has insurance coverage, just in case the mould returns.  

But what if this is all too much work?

Give the buyer credit

For those who have no time to sort out the mould themselves, and it is discovered during an inspection, you can offer the potential buyer credit to hire professionals to deal with the issue. 

We believe this will take care of what you need and should answer all their concerns. If the buyer does accept, we don’t anticipate you having any issues moving forward. And as a rule of thumb, make sure that you take all the steps to prevent mould growth throughout the home.

But what if you’re not interested in making a deal with a buyer? You could sell your house for cash to an iBuyer service like ours 

Finding a knowledgeable realtor can make all the difference when planning to sell a house. Your realtor, now known as property practitioners, is arguably one of the most important people on your team. 

You can choose to go with the for sale by owner (FSBO) route, but there are a million and one things to think about. This is why you want to hire a realtor – they can guide you through the process and make it as easy as possible. But, hiring a poor realtor means they could drop the ball and be costly to you. 

How to choose an Estate Agent?

Trusted Sources

There are a number of ways to find a long list of local realtors, but finding one you can trust is tricky. After all, we’ve all read online reviews only to discover the individual doesn’t match up.

Make sure to put your feelers out on social media for friends and family who have recently dealt with a real estate agent. But sometimes this isn’t possible.

If you applying for financial help, you can also ask your mortgage lender for advice on who has closed the most deals with them.  

If this is the situation you’re in you will need to find the reference somewhere else. This means you’ll have to look for a real estate agent who is registered with the Property Practitioners Regulatory Authority (PPRA), which means they’ve agreed to abide by the organisations code of ethics. You can also log onto the website where you will find a list of all registered Estate Agents as well as registered Estate Agencies. Also, you can verify an estate agent’s legality requesting a copy of the fidelity fund certificate from the agent.

You will always want to make sure that your agent is a specialist in the field you need them to be. You should short-list your candidates and do your research.

Do the Research 

Do a simple Google search and take time to review all the feedback. While it is near to impossible to get a perfect rating, a majority of poor notes online can be a real red flag. 

Be sure to also do some social media searching, as users often don’t leave their thoughts and experience on Google.  

After shortlisting, it’s time to conduct interviews.

Interview

You’ll need to interview 3-5 agents before making your decision. This process is to see if you’re a good personality match. In addition, find out if they’re experienced in your neighbourhood and understand your preferences.

Here are some questions to ask a real estate agent when they step into your home:

• How long have you been in the game?
• The amount of homes you’ve sold? 
• Do they specialise in a certain field?
• Are they a full-time or part-time agent?
• How many clients are on their books?
• What’s their usual time frame for selling a home?

This list can expand depending on the tasks at hand. Now that you’ve answered, “How to choose a real estate agent for selling a home?” and select your agent. It’s time to review your working relationship.

What are the qualities of a good realtor?

Good communicator 

Communication is a major factor in making sure everything goes smoothly. It’s also the number one issue that sellers and buyers will complain about. 

A realtor who is responsive can be a huge relief and can save you a massive amount going forward. Also, you need to act on certain situations so having an open communicator is a massive asset. 

It’s usually best to give some time. But if the turn around for a response is 24-48 hours, then you might consider another agent.

Timing

A real estate agent should always be on time for meetings with clients. It’s a part of their job that just about every agent takes seriously. In fact, your agent should go the extra mile and arrive early for all appointments.

Good peoples’ skills 

Being able to manage people and their relationships is also a major part of a real estate agent’s job. Negotiations can be tricky, so need to be able to filter the messages between parties to ensure that the talks progress. This means a real estate agent should never pass on unedited messages between parties.

Not interested in your plans and goals 

Your realtor works for you. If they don’t understand what you want, then they won’t be able to help you. Be sure to communicate with your realtor and set clear expectations right from the start of your search so that they can provide you with the service that you deserve.

They need to talk 

A quiet agent fills the silence in the room with doubt. And a realtor who is able to talk the talk will also create more opportunities. 

Now that you’re certain that your realtor is exactly who you need them to be, we need to discuss a commission

Realtor commission 

Your realtor is one of the most expensive parts of selling a home. And the majority of the time they earn every penny. 

The average commission of a real estate agent fluctuates between 5 – 6%.  This rate can also vary when it comes to a more focussed take on towns and cities.

Selling your home without a realtor can be a challenge. It takes a lot of time, specialized insights, and is more expensive than the average person may think.

If your agent is trying to upsell you on their services, above the usual 5 – 6%, then you’ll be looking to possibly selling your home to an investor 

The Difference Between a Real Estate Agent and Real Estate Investor

Deciding to sell your house can be a stressful decision. It can seem complicated and overwhelming because you probably have several important decisions to make before the sale. To ensure that you’re guided along the way, find a real estate professional you can trust. But you can also talk to a real estate investor to determine what selling path is the right way to go.

For some people, the term “real estate investor“has a lot of connotations to it. We’ve included all the information you need to know in order to make a smart and well-informed decision on whether you should sell your home “to” a real estate investor or “with” a real estate agent.

It is not easy to sell your home. There are many different services that can help though, with their own advantages and disadvantages. For now, let’s focus on the difference between a realtor and an investor.

	REAL ESTATE AGENT	REAL ESTATE INVESTOR
Commissions / Fees:	Plan on about 6% of the final sale price going to your agent for commissions.	R 0 – Direct Buyers
Who Pays Closing Costs?	Sellers will spend money to get clearance certificates, Compliance Certificates	R 0 – Handle all costs
Bank Inspection Needed:	Required by lenders before the loan is funded	No – Funds are in place before Making an Offer
Average Days Until An Offer:	+/- 83 Days	24 hours
Number of Showings:	Unknown – but you will have to keep it ready for showings	Only to the Home Buyer
Closing Date:	Anywhere from 30-60 days after an offer has been accepted	Whenever is the most convenient for you. Can close in 14 days after the offer has been accepted.
Who Pays For Repairs?:	Negotiated between the buyer and seller after the inspection.	Home buyer will pay for all Repair Costs

The Benefits of Selling Your House to a Real Estate Investor

1. All Cash Offers

Investors have their own money. Professional property investors typically close faster than traditional buyers as they don’t have to deal with loans. most real estate investors pay in cash so you don’t have to worry about whether or not a buyer has been approved for a loan.

2. Purchase Houses As-Is

With a direct sale to a property investor, you will be able to sell your property without spending any time or money on the house. They buy properties as-is, so you can hold on to that cash and use it toward your next property.

3. Flexible Timeline

It can be very hard to find a time frame that suits both the buyer and the seller. Perhaps you could extend your search by being more flexible? or you need a short sale transaction where you’re in a situation to leave the house quickly. You usually have more control over the close date with a real estate investor, since you’re not timing a move-in date the same way a traditional home buyer is.

4. No Hidden Fees

Home cash buyers are direct buyers, which means there is never any cost to work with them. There are no commissions to consider or expenses to get your house listed online. Good Investors help by not overcomplicating the process of selling or give you the runaround, straightforward professional buyers who are ready to help you with any difficult situation or property.

When you consider all of the time and money, selling your house directly to a real estate investor can save you. You might find that a direct and straightforward sale is the solution you have been waiting for. That said, we will always encourage you to explore your selling options so you can make the decision that is right for your situation.

5. Save You Time

You won’t have to deal with any of the time-consuming processes required with a direct sale. There are no open houses, lengthy paperwork processes, or hoops to jump through from the bank. There are also little to no expenses you will have to deal with in order to sell. Making things easy, without any cost to you.

A great perk of a fast sale is the elimination of holding costs. By selling in a few days vs. months down the road, you’ll be able to potentially save thousands on utility bills, homeowners insurance, property taxes, and other costs that you would otherwise be paying to own the home.

Final Thoughts on Selling Your House to a Real Estate Investor

Sproud is dedicated to helping you make the best decision regarding your home selling options. We want to partner with you to find the best way out of a stressful situation. Our process is direct and to the point. We strive to give back in all we do. We’re here to help you throughout the entire process, even helping you find a new home!

---

Get a Personalized, No-Obligation Offer Today!

What are your goals with the sale of your house? How can we help? We’ll help you solve difficult problems and partner with you to resolve stressful and expensive situations.  Fill out the form below to tell us about your property.

When dealing with a divorce, settling affairs and dividing assets can be difficult. Between the bickering and constant disagreements, dealing with such a large financial decision will only add fuel to the fire. In this article we offer some tips to make the home selling process as simple as possible when selling your house during a divorce in Johannesburg.

1. Dividing ownership in real estate

One of the most common pitfalls in a divorce is how to divide the property.

Property division is not just about who gets what, but also where one spouse can continue to live after the divorce.

Dividing ownership in real estate can be done through a variety of methods. One is through an agreement between two people with the help of mediator or lawyer. Another way is for both spouses to buy out each other’s share with their own money or by getting a bank loan, which means one spouse would have to take out a personal mortgage for this.

2. Price the Johannesburg home to sell

By accepting a lower price than you would normally try to get for the property, you give yourself the ability to potentially sell the house much more quickly. Both former spouses will need to agree on what is an acceptable price. If you list the house online in South Africa, make sure you haven’t priced the property too high. Doing so will cause you to deal with the selling process for longer than you would like. While there’ll still be a wait time of 30-60 days until your money is transferred, price it right from the beginning so you can sell it fas

3. Investing in the right agent

Agents can be a valuable resource when it comes to navigating the world of property. They can help you find the right property and negotiate on price and terms. But not all agents are created equal. Some represent sellers, while others represent buyers and some represent both, so it’s vital to know which type of agent you’re dealing with before signing any contracts or handing over any money.

4. Delegate responsibility

Depending on your situation, you may have enough to fight about already. You don’t want to add more things to bicker about by being unclear about who is doing what for the sale of the home. Make sure each party knows his or her role in order to avoid the blame game of who is doing what and when.

Decide who will take care of repairs, cleaning and any questions from my agent. It’s a good idea for the ex-couple to work together because that’ll help them successfully sell their home.In some cases, it may be best to hire a pro to handle the cleaning as well as other tasks. The costs can be split between both parties involved. Also, both parties should be in contact with the agent so that everyone is kept in the loop during the process. A fighting couple may forget to tell their former something that is critical to the sale of the house.

5. Keep your emotions in check

When selling a house during a divorce in Johanneburg, you are bound to get emotional at some point during the process. Divorce is hard. Saying goodbye to not only your spouse but your home, too, can cause you to think irrationally. Keep your eyes on the future so you don’t feel sadness, spite, or bitterness toward your partner. These feelings can disrupt a successful sale and can make the process drag on for longer than it needs to. You can also have your lawyer or mediator assist you in the process of selling your house.

If you are looking to sell your home, there are many factors you will need to consider. You may be under time constraints or not feel confident in the process of selling your home on your own. This is where a lawyer or mediator can assist you. A lawyer can help with the legal side of things, paperwork, contracts and negotiations whereas a mediator can help with any disputes that arise during the

Sell My House In Johannesburg

Does the idea of selling the house in just a few days sound good to you? When you work with the team at Sproud, a Johannesburg home buyer, this could be your reality. Within just a few days, we can close on your Johannesburg house, potentially saving you thousands on holding costs, marketing, and agent commissions. We offer cash for houses in Johannesburg, Roodepoort, Randburg, and a few other areas. We work with divorced couples all over the Gauteng area who are looking for a fair and fast way to liquidate a house. No matter the condition or situation, we can help you with a fair and honest offer. Sell your house in Gauteng area now!

Is your property experiencing foundation damage? You’re not alone. Foundation problems are the most common structural defect in residential homes. If you don’t know what you’re doing, tackling a problem like foundation damage can be a nightmare.

What is a property foundation issue and how does it happen?

A property foundation issue is when there is damage to the foundation of the property, usually due to poor construction or neglect.

If you’re dealing with major foundation issues, be sure to seek professional help before you start trying DIY fixes. Believe me—I feel your pain. Foundation problems are one of the worst things home-owners face, but can happen to investors too. This damage manifests in a number of ways, from foundation cracks to a damaged concrete slab to leaks in the basement walls.

What are the major causes of foundation issues?

The major causes of foundation issues are:

1) Low-quality, or improperly installed drainage systems- water can’t drain out of the soil and pools up, which increases the risk of flooding and structural damage. If this is a problem, your home’s foundation is most likely suffering from it.

2) Foundation settlement- when the soil composition changes, such as when groundwater levels drop or there’s a big storm. This can cause cracks in your foundation.

3) Soil erosion and degradation- if you home is on a hill and the ground around it erodes away, it will eventually start eroding away underneath your house too. Your house will start to sink into this hole until the ground deteriorates so much that your house falls down.

Signs of foundation issues

While you should always hire a structural engineer to evaluate any and all properties with a suspected foundation, there are a few easy clues visible to the naked, uneducated eye.

• Plumbing: Plumbing problems do not always indicate a foundation problem, but they do indicate that further investigation is necessary. Over time, dripping water can damage the concrete.
• Poor drainage: Ground sloping toward the house—also called negative drainage—can cause water pooling. Differential movement can be caused if one part of the property is located on loose, wet soil and the other part is on a clay soil. That’s when parts of the foundation shift in opposite directions, leading to cracks.
• Trees: If there are trees too close to the property, keep an eye out for them. Tree roots can push against the foundation or dry out the soil, causing your foundation to shift.
• Hairline cracks: These cracks can be found in the mortar between bricks or concrete blocks, but they can also be a sign of foundation issues. Sometimes these are caused by seasonal expansion around window frames and doorways, so make sure a structural engineer inspects the scene.

Making an informed decision

Knowing when you should deal with big distress like a foundation repair requires the help of a structural engineer. So, your first step is to hire one.

Even if you’re not technically involved, it’s important to hire someone who is. An engineer will inspect the home and make sure there are no hidden structural issues. After they’ve had a look, they’ll present you with some options and help you decide what to do next.

For example, the engineer may tell you that corrective action is minimal. A foundation repair company might try to sell you on unnecessary services. I was offered a R50,000 discount on an offer because one of the companies I approached told the owner it needed huge repairs. It turned out it had a down spout problem and needed some grading work.

Ask your engineer if this is issue can be resolved with a simple repair. Or should you expect to deal with future issues? Some water table issues can be mitigated with a simple fix. But perhaps you’re dealing with ongoing shifting soils beyond your control. Ask your engineer, “What’s the fix?”

Finding a foundation crew

Speak with a number of different foundation crews. Ask them to visit the property and assess the reported damage. Once they provide an estimate for the cost to repair, you can decide whether or not to go ahead with the project.

Make sure you and your crew are clear on your timeline to fix the issue, especially if you’re planning a sell. The foundation must be corrected first before any other work is done in the house. (If a contractor tells you differently, run!) Carefully plan how long it will take to correct uneven foundations and add this time to your renovation schedule.

Before signing an agreement, research the foundation company you chose. Before hiring this company, do your research, find out how they’ve done in the past for other customers, talk to their references and ask about their warranty claims. If a company won’t give referrals, this is a red flag.

Here’s what you should ask:

• What is their warranty process? Warranties are a great way to know that your purchase is backed by the company. What will happen to your warranty if the company is bought out or folds?
• Can I see an engineering report and repair estimate? Ensure that you read both of these reports before making a purchase. I’ve seen investors “guesstimate” with their Realtor or contractor… and be very, very off.

Finalizing your budget

Add a contingency budget to your entire construction budget to account for any surprises. Experts recommend a 10% in contingency in most cases.

Lastly, make sure your budget still works! You now understand how much it should cost and this includes the contingency. Check your calculations and run your analysis again.

We have bought and sold these homes without issue or impact to the value of the property because the work was done right. Also, we certainly don’t buy every property with foundation damage we come across. I always make sure to check off all of the points above.

If you have been affected, by the quarantine then COVID-19 might of made things more complicated for you because you had to sell your house.

Selling your house without having people walk through it

We hear this question a lot in the days of social distancing. Because a quarantine doesn’t change whether you need to sell your house, but it sure can complicate the process.

If you sell your house traditionally, strangers will tour it while you are not there. You might have contractors or workers fixing it up to prepare it for sale, who may or may not be careful.

Fortunately, technology has provided anyone with internet access the ability to view a house virtually on your phone. Advancements in imaging technology and Lidar make it possible to view a property in 3D from anywhere in the world. This means buyers have no need to schedule time to walk through a house. Have your home scanned of film once and allow the users to walk through your home whenever they want.

But, let’s say someone likes your house…

When is an offer an offer?

Many buyers, especially those who work online, don’t start with seeing your house in person. And that can sound very attractive until you discover that they reserve the right to lower their offer once they do visit in person.

When there is a crisis, it can be difficult to get financing. Many buyers can’t get the financing they need to buy houses, and many of them do not mention this before making you an offer. If they can’t find it, they’ll walk away from the sale at the last minute, and you’re back to square one with time wasted.

Are There Faster Easier ways to sell your house?

Cash home buyers, like Sproud, take away the need to have showings and to have people come over to do repairs, cleaning or whatever to get your house ready to be shown. They buy it “as is,” meaning you don’t have to incur all that time and expense.

We’ve Changed With The Times

In these times, we’ve adjusted to use the word “visit” differently. We still come by in person very briefly, observing all the social-distance and personal-protection standards in your community.

Also,

we can see your house from the outside, then follow that up with virtual visits by video or photos on your smartphone or other device. Then we can confirm our offer once everyone feels comfortable that we can come by in person.

We’re ready to do what it takes to help you with your house and arrive at what’s best for your individual situation.

Owning land is pretty easy – rarely does it take a lot of effort. But when you want to sell, that can be a different story. Do you own land and are wondering, “how do I sell my SA land to a developer?” Because this is a question we get sometimes, here are a few pointers to help you get started…

1. It’s important to know what developers are looking for

This developer wants to build and sell property, so they want property close to infrastructure like water, sewage, power, and roads. After all, they’ll need to connect these services to their development, and they’ll want people to get to their development!

It’s okay if the land isn’t serviced, but developers will probably want to know how far away the services are and whether those services are being actively worked on by the municipality.

2. You may want to bypass the real estate agent

A lot of real estate agents work with homeowners who are looking to buy a house to live in. If you’re wondering how to sell your land to a developer, you may need to find someone who specializes in selling land to commercial businesses.

3. Be aware of zoning

Developers will want to know how your property is zoned, so they can anticipate the work required to build. Of course, zoning can often be changed, but zoning changes will just add to their timeline and work flow, so it’s helpful for developers to know up-front how the land is zoned.

4. Be aware of the path of new construction

This one is harder for land owners to know but if you’re wondering, “How do I sell my South African land to a developer?” this will be an important consideration that the developer is thinking about: If your land is not inside a city then a developer will probably want to know if the city is growing in the direction of your land.

You don’t have to know this answer yourself, but if you do, it will be helpful to developers. Selling raw land can be challenging because it’s a very different kind of buyer. But if you’re wondering, how to sell my land to a developer, then these 4 tips will help you.

If you’ve suddenly inherited a house, you may not be prepared for the questions and issues that can arise. And if you make the wrong decisions, you will likely encounter financial, emotional, and family problems before long.

So here’s some of what can go wrong when you inherit a house in South Africa.

What Can Go Wrong When You Inherit a House in South Africa

You May Owe More Taxes than Anticipated

Most people don’t have to worry about estate tax because of the very high exemption (in the millions). So in considering what can go wrong when you inherit a house in South Africa and when you intend to sell it, you need to consider the capital gains situation. You don’t have to pay tax on what you inherit because it’s not included in your gross income. However, the estate of a deceased person is subject to a 20% tax called estate duty. This means that tax is paid on the estate before it goes to the beneficiary or beneficiaries.     

The Mortgage May Be Bigger than You Thought

Generally in the past, when an elderly parent or relative passed, the mortgage on their house was paid off. These days, though, it’s common for people to refinance their home to supplement insufficient retirement funds. So if you intend to rent the house, you may have to Finance it in your own name.

The House May Need Repairs and Upgrades

With respect to what can go wrong when you inherit a house in South Africa, this one may be the most costly. Most of the time, people inherit a house from a deceased elderly parent or very close relative. Besides not having the physical ability to perform maintenance and upgrades, many elderly people don’t have the money for it either.  If you plan to live in the inherited house, this may not be a huge concern. But if you intend to rent it or sell it, you’ll have to make repairs to make it presentable and upgrades to bring it up to code and meet other legal and insurance requirements. Installing a new roof or re-wiring the house will involve a big chunk of money.

You May Have Problems with Relatives and Joint Heirs

But what if you’re not the only heir? That can be a problem. Suppose you and your siblings inherited the house jointly. If you want to sell it, your brother may want to rent it, and your other brother, to live in it himself. You can see what a powder keg waiting for a spark this is. In most states, joint heirs of a home are considered tenants in common, and one heir can force a sale if it comes to that. The process, however, is expensive, and the emotional and familial consequences are likely to be highly unpleasant.

So what can go wrong when you inherit a house in South Africa? Quite a lot, actually, if you’re not up to speed on tax laws, mortgages, and upgrade issues.  It is best to contact a qualified professional to help head off these issue quickly.  

---

Disclaimer: This is by no means legal advice on inherited property. A certified legal professional should be consulted when dealing with inherited property.

Why do some homes sell right away? Why do some sit on the market for months at a time? And why isn’t your house selling? In this post, we will help you to consider some reasons why your house isn’t selling, and what you can do about it!

Selling a home takes work. It is only when a price, a property, and a buyer all lineup that you are able to achieve a sale. To make this happen as the seller, you need to take a good look at your home and the price you are asking for.

Don’t Be Overly Ambitious With Your Asking Price

So many people are quick to list a property, without really considering the amount they will actually walk away with. You might take a guess at what it’s worth, and mark it up a bit for commissions and other listing costs. If only it were that easy. Many sellers don’t have a realistic value for their homes. Before you list, run some comps for properties that have recently sold in your area. You might even consider having an appraisal done. If you need to lower the price of your house, it will be visible to potential buyers viewing your property on marketing sites. If you lower the price over and over, you will make people think there is something wrong with the house.

Your Clutter is Off-Putting

No matter how cute you think your stuff is, it’s still YOUR stuff. How can someone imagine your extra bedroom as an office if there are teddy bears everywhere?

• Put away any personal items.
• Clear away paperwork from tables and desks.
• Take pictures down.
• Put away things like your robe, your razor, and your toothbrush.

And while you’re at it, give it a thorough cleaning. To be blunt, your typical cleaning habits may not be on par with some of the people viewing your home. Now is the time to channel your inner neat freak.

You Aren’t Able to Compete

Thinking about listing in Johannesburg? Do you know what you’re up against? Take a good look at properties for sale in your area. Know what your neighbors are asking for their homes, and what comparable houses have recently sold for. Don’t look at what people are asking, look at what houses are actually going for. Property24 has a section that list the price properties were sold for in a street.

You should also know the demographics of potential buyers. Are there a lot of families? Make your yard conducive to outdoor fun. Young professionals? Think of showcasing an area as an office or gym.

It Needs Work

Honesty is key here. There are things you might have been overlooking for so long, that now they just seem normal. Get an outside opinion on what repairs should be made. Ask friends for candid opinions. Ask your agent. And consider doing an inspection on your own. Fixing the things in need of repair will improve your selling chances, and lower your potential buyer’s bargaining power over repairs.

Bad Photos

People use the internet to buy homes. In our opinion, nothing can destroy a listing faster than bad photography. On the flip side, well done, professional photos can make your listing skyrocket. Don’t settle for an agent who takes a picture of your home from the car. And going back to the above, there should not be any clutter in your photos. Seriously. Nothing. Putting some effort into great photos will make or break your listing.

Your Agent isn’t Doing All They Could Be

Some agents will do the bare minimum and cross their fingers for a sale. They might have gotten their license in hopes of making a quick buck. Then there is Sproud. We are real estate professionals that genuinely want to help people! We believe everyone should love the real estate they own.

Title Issues

It is very difficult to sell a property with foundation issues or squatting-tenants or other title problems. Maybe your great aunt gave you the property, but it was never properly put in your name. (AKA, transfer without conveyance.)  To sell a property in do whatever you can to clear this up before you list it.