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  • Should I Trust Property24 to Determine My House Value in SA

    Should I Trust Property24 to Determine My House Value in SA

    I’m always curious to find out what kind of value a property is going for and how that will affect my financial decisions. I have an ‘it’s-been-listed-with-a-real estate agent for almost a year now, so I have a unique perspective on this.’ In my experience, real estate agents do their best to hype the property up and make it seem like a good deal when in reality it is not.

    In today’s internet savvy world, many home-owners look to websites like Property24 or Private Property for information. But the questions is, “Should I Trust Property24 to Determine My House Value?”

    No...

    Don’t trust online listing sites for valuing your home.  Here’s why.

    Margin for Error

    An old adage in real estate sales is “your home is worth what someone is willing to buy it for.” This suggests that there are many factors that go into the valuing of a home.

    Online listing sites, on average, can list properties anywhere from 10 to 12 percent higher or lower in home estimates. There are even reports of home values on listing sites climbing in declining market areas.

    Let’s think about this for a second. For a R800,000 home, a 10 percent could mean R80,000. For higher-priced markets like Cape Town, a R3 million home could see estimations varying from R300,000 to R360,000 or more. That’s a huge difference in pricing.

    These estimates could discourage potential buyers who might think a home is well out of their price range. It might also be giving sellers an unrealistic idea of a selling price point. In the end, this is the starting point of many disagreements home-owners are having with estate agents regarding properly pricing a home.

    I know property valuation is a complex and often time-consuming process. I’ve already seen plenty of articles on the subject, but I think we’ve yet to see anything that really addresses the complexity of this particular topic. That’s because there’s no easily accessible resource for property valuation in South Africa.

    TIP: Property24 has a really handy tool that lets you see the last sold prices of your street. You can see all the properties in your neighbourhood, or you can pick a specific one to view.

    How Does Property Listing Sites Create Estimates

    Websites like Property24 and Private Property do not determine the value of your property which means they do not control the listing on its site. They are just mediums through which real estate companies and home-owner use to list their properties to a larger base of potential home buyers.

    While professional listings are reliant on accessing public records and user input such as realtor sales. However, they cannot discern if your home is the fixer-upper or completely redone and upgraded home everyone is envious of.

    Most people will factor in the size of the house, size of the land, and all features of the home including the number of bedrooms, bathrooms, pools and highlighted features. However, this is a starting point for a true valuation of your home and should not be considered an appraisal or true value.

    Estate agents find their estimates using companies like Lightstone and Windeed. But, even with all this data being collected from the deeds office there is still a high margin of error. This is because most Agent and Sellers aren’t actually looking at your home.

    The More Accurate Model

    Any professional realtor will tell you that pricing a home to sell requires a full understanding of the home itself, the location and current market trends in that area. In fact, most realtors look at online listing pricing with a bit of disdain because it does make pricing and managing realistic client expectation more difficult.

    A realtor will take a look at sales in your area, creating a radius based on your pocket rather than an entire area code.  They will then compare your home based on size, features, and upgrades to those homes that were recently sold, thus appraised, in the previous 3 to 6 months. This range is contingent on how hot the real estate market is in the area.

    The realtor will then compare this information to existing homes on the market, looking at how your home compares to what else buyers are seeing on the market. After all, if yours is a well-kept home being sold next to a completely remodelled home, you might not be able to get the same price per square foot at the other.

    Additionally, realtors will consider whether it is a buyer’s or seller’s market. If you want to create a frenzy with a lot of eyes on your property in a seller’s market, you can underprice the home and let the bidding begin. This tactic works in many markets including Gauteng.

  • How To Sell Your House in Edenvale Without ANY Hassle!

    How To Sell Your House in Edenvale Without ANY Hassle!

    For many people, the thought of selling their home can seem like a lot of work accompanied by a long list of expenses. It might seem even more overwhelming if the property is in need of repair. However, it doesn’t have to be that way. In this post, we will explore the ways you can sell your house in Edenvale without any hassle whatsoever! 

    When selling a house in Edenvale most people immediately think about hiring an agent and listing the property on the Property24 or PrivateProperty.co.za. This is a great solution for many people, however, you should know there are other options available to you. There are many ways to sell an Edenvale house hassle free. Consider your options to discover which selling method is right for you and your situation!

    Sell You Home Directly to A Professional Home Buyer

    You can sell your house without using an agent, ultimately saving a ton of time and money depending on the situation. There are companies such as Sproud that will buy your Edenvale house using a straight-forward and simple process.

    With a direct sale, you won’t have to worry about commission, repairs, cleaning-up, or waiting for a buyer to come along that would qualify for a sale. You will immediately know the amount you are receiving as well as the closing date so you aren’t left wondering when your house will sell.

    Direct sales are becoming increasingly popular, however, not all buyers are the same. Make sure you do your homework on both the local market and the buyer you are working with. A direct sale may not offer full price, but for some people, the amount saved on repairs and wasted time more than makes up for the difference in price.

    Listing Your Home With An Experienced Agent

    Of course, listing your Edenvale house is an option. Take the time to learn about everything that is involved and what will be expected of you. No two agents work exactly the same and there are no guarantees. Your property can be listed for any price, but there is no guarantee you will receive it. Watch out for agents who try to “wow” you with a high listing price. If it’s priced too high, it will likely sit on the market, possibly for months at a time.

    You will inevitably have to lower the price, while your property drops down the list of homes available online. If you decide to list, make sure your agent prices your home to sell. Not just setting a high price to convince you to sign a listing agreement.

    Offer the Buyer Seller Financing

    This can work for some people who don’t have a mortgage on their home. You can elect to “be the bank” and offer your tenant a rent-to-own model at a higher than average price. They will then have the option to buy the property outright at the end of a certain period of time, typically around 2 years.

    Consider Other Options

    If selling simply isn’t in the cards and you need to move, there are other options. You can rent the house out as either a short or long-term rental. The trouble with this can be finding great tenants and retaining them for as long as possible.   Being a landlord is a full-time job. Renters can be quite nomadic, and tenant turnover can cost you dearly. If you haven’t done this in the past, consider hiring a property manager to help you keep everything in order.

  • What are Closing Costs Exactly in South Africa?

    What are Closing Costs Exactly in South Africa?

    You’ve likely heard about closing costs. But do you know everything that these costs include? Because if you need to sell your house in Gauteng fast, we can help without having to list your house, do repair, or pay agents, even when you are facing difficult situations.

    Closing costs refer to all of the fees that must be paid at the closing table. Depending on where you live, the fees and costs can vary. But generally, closing costs include, but are not limited to:

    • Bond Cancellation Fees
    • Rates and Taxes Clearance Certificate
    • Levies
    • Compliance certificates
    • Appraisal Costs
    • Repairs and Maintenance
    • Bank Fees
    • Courier Fees
    • Wire Transfer Fees
    • Liens against the home will need to be paid to clear the title
    • Home Inspection Fees
    • Administrative Fees
    • Attorney Fees, If Applicable
    • The balance of your mortgage or loans against the home
    • Possibly repairs or pest control if this has previously been agreed upon
    • COMMISSIONS!

    Who’s Paying For The Costs Of My SA Home?

    While the buyer will usually pick up a number of these, it is important to note, that the seller typically pays 100% of the commission. This will be about 6% or more of the final sale price. Other than your possible mortgage balance, this is by far the biggest cost when it comes to costs at the closing table. Negotiating the other costs during the sale process is becoming increasingly popular. In an effort to lure in more investors, sellers are more frequently picking up the tab when it comes to the closing costs.

    As a seller, you will also need to pay your share of the year’s property tax, up until the day of closing. Any levies fees or other community costs should be prorated and paid at this time as well.

    Can You Avoid These Costs In SA?

    Yes! By working with a direct buyer who will pick up all costs associated with the closing! A direct buyer will not charge you a commission, as they are not an agent. Many times, direct buyers will offer to pick up all costs, which will save you money and hassle at the closing table.

    Are Repairs Included When I Sell My SA Home?

    This is another one that is negotiated between the buyer and the seller. If the home is in need of some obvious repairs, the seller will often take care of these before putting their home on the market. However, if an inspection shows additional repairs are needed, a purchaser may make his offer contingent on repairs being made. A buyer and seller can work this out before going to closing.

    We Are Local Connecticut Home Buyers

    We purchase homes fast without including agents or realtors. This means that when we acquire your home there is virtually no cost to sell your home, no repair cost, no holding costs, no closing costs, and no agent fees. We offer cash for houses in South Africa and we can close on your schedule. Give us a shot and see how much we can offer for your property. Sell your house in SA to us now.

    • Selling Your House Without An Agent in GP

      Selling Your House Without An Agent in GP

      We live in a world wherein most cases everyone can do everything without expensive expert service providers. People trade stocks without a stockbroker. People create wills and trusts without attorneys. Many even renovate homes without contractors. As independent as everyone is, why wouldn’t you want to look at the benefits of selling your house without an agent in Gauteng?

      Saving More Money

      Agents cost money. It’s that simple. In many cases, it’s a lot of money. A real estate transaction can cost six percent of the final property sales cost. If a property sale price is R1,300,000, this can cost sellers R78,000. This is a considerable amount that is taken from the final sale price. If a seller still has high mortgage balances that need to be paid off, eliminating commission costs is a huge advantage.

      The Negotiator

      Even though you are not forced to have an agent, it doesn’t become negotiating power to say you are more flexible in the price if there is no outside representation. Buyers might feel they are able to negotiate a better price without an agent because they know the amount of savings in the transaction.

      Beyond negotiating the sale price, sellers might feel they are more qualified to sell and negotiate the transaction than an agent. Sellers well versed in real estate transactions might be comfortable walking through the process and negotiating items at different points in the selling process.

      It’s possible that the transaction might be straight forward. When a seller is comfortable dealing with a buyer, she can save at least six percent of the commissions by representing herself. Perhaps it is a new construction, or being sold as-is and the seller isn’t willing to negotiate on anything. Buyers can come in and make an offer without expectation for repairs or credits. Sellers set with their price and able to provide all disclosures and documents properly might not see a need for agent representation.

      It’s Not Personal

      There are times when a transaction is among well-known parties. Well-known could be family members, close friends or even business partners. In cases like this where everyone is clear who the parties are and what to expect in the sale, there may not be a need to bring on an agent. Of course, there needs to be a lot of trust among all parties in this type of transaction scenario. Even when parties to a sale know each other, legal sale requirements must be followed.

      Adhere to all legal codes for disclosures and timelines. The last thing you want as a seller representing himself is to find yourself in a legal battle down the road for a property you thought you no longer had any ties to. Follow the rules to avoid legal ramifications and penalties.

    • The 5 Signs of a Trustworthy Home Buyer in SA

      The 5 Signs of a Trustworthy Home Buyer in SA

      Selling a property and choosing a house buyer is a big decision, with financial implications that may impact your life for many years to come. Working with a trustworthy cash buyer is imperative when it’s time to sell your property in South Africa. 

      With the increasing number of companies that buy cash for houses all competing for your house, it can be difficult to choose the right one. So before you choose, make sure you thoroughly research the companies you’re considering. 

      To help you out I have created a checklist of the five best ways to determine is a house buyer is trustworthy. 

      1. Experience

      There are many startups and new companies that are great, but when it comes to protecting your interests, go with the company that has been around for a while. At the very least, make sure they have sufficient experience with buying properties. In addition, it’s best to use a company that has local market knowledge and experience.

      2. Social Proof

      What we use to call reputation and testimonials, but now the favored term is “social proof.” Check out references and especially reviews at online review sites. And don’t forget to see what kind of feel their social media presence has. Do they, for example, emphasize customer service overselling their product and services?  Look for a house buyer that has a reputation for fair and honest service.

      3. Accredited Business

      Always use the tried-and-true method of checking if your prospective buyer is a registered business with CIPC. At a minimum, they should have a registration number, as well as no unresolved complaints. You can feel confident in choosing a buyer in South Africa – that it is a strong, reliable business – if they have few or no unresolved complaints.

      4. No-Strings Offer

      The company should also be willing to make an offer with absolutely no commitment on your part. If they are a reputable company, you should be able to receive an offer without having to sign any agreements or contracts. A no-strings offer is one sure sign that the company is a trustworthy cash buyer.

      5. What Your Gut Says

      Whatever ever you call it, first impressions or a gut feeling, just listen to it. You should have a good feeling about the house buyer you’re considering.

      They should offer free consultations and be able to answer any and all questions you have (and you should have plenty of them).

      In addition, staff and personnel should be approachable, personable, and straightforward, and they let you know what to expect and keep you informed of progress every step of the way. Also, you should never feel pressured or rushed to make a decision. There should never be any hard sell. 

      Further, you should be able to easily contact them, getting a live person on the phone and not a voice mail. They should return your call soon after you request one. Finally, you should feel confident in their ability to do exactly what you need.

      Final Thoughts

      It’s important to research several cash buyers and not fall into the trap of just going with the first one that seems okay. Be sure to check out their websites and take advantage of the free consultations.

    • Selling Your House Directly

      Selling Your House Directly

      What you may not know, is that there are multiple ways to sell a Johannesburg house. While many people immediately seek the help of an agent, there are other, more cost-effective ways to sell your house like selling your house directly. For example, you could choose owner finance or sell the property directly, without the help of an agent, which is what we will cover in our latest post

      As we said above, there are many ways to sell. For some properties, a listing makes the most sense, whereas, for other, a direct sale is the smarter choice. Which will it be for you! Don’t sign any agreements or agree to a sale until you learn about what a direct sale can mean for your situation!

      The Commission Factor When Selling Your House Directly

      When you choose a direct sale to a company such as Sproud, you won’t have to worry about paying out 6% of the sale price in commissions. This is thousands of Rands you will immediately save by choosing a direct sale. In addition, there aren’t any agent fees, marketing costs, listing fees, or photographers to pay. When you work with a direct buyer, the property is typically sold as-is, so you can keep the money for advertising in your pocket.

      No Clean-Up Or Repairs

      Listing your Johannesburg house will require you to make repairs to the home to get it ready for listing. Even small damages can severely lower your potential buyer’s perceived value of the home. Making repairs and touch-ups to the house can add up quickly as far as finances are concerned. You will also have to factor in the cost to clean up, keep it clean, store personal items and clutter as well as purchase items if you need to do some staging. While these costs can be worth it in the long run, they should be well considered before listing your home.

      Your Terms

      When you work with a company like us to sell your house directly, the closing date will be up to you. We are able to purchase properties almost immediately, so you won’t have to spend time waiting around for a buyer to come along. On the flip side, we will not rush you into a closing. We know that selling and moving can be a stressful time, hence why we aim to keep the process as simple as possible. If you should choose to accept an offer from Sproud, you will then decide on the date that best works for you. You won’t have to worry about the sale falling through as with a traditional sale using bank financing. A direct buyer will have the funds available to pay you immediately!

      A Fast Sale Will Save You Money

      Point blank, the longer you own the house, the more it is costing you. Investors know this, that is why the goal is always to flip a house quickly! By selling your property to a direct buyer right away, you are potentially saving yourself months of wasted time and money. You are likely paying more for your house than you even realize. There are monthly utilities to consider, homeowners insurance, property taxes that you are responsible for up until the day of closing as well as routine maintenance costs. If you are paying for things such as pool service, pest control or landscaping, those costs will immediately be over and done with.

      Selling Your House Directly Offers Guarantees, While A Listing Does Not

      There is a lot of uncertainty when it comes to buying and selling properties. Deals fall through every day. Banks often take longer than expected to fund a loan, especially during the covid pandemic that has hit South Africa. When you list, you are in essence living in limbo until the closing papers have been signed. An agent can list your house for any price you want, even if it has been inflated in order to get you to sign a listing agreement. There is NO guarantee that you will get the price you ask for when you list your Johannesburg house! With a direct sale, you will know both the exact date and amount you will walk away with. This will allow you to plan ahead without having to deal with the unknown!

    • Save Your Home: Avoid Foreclosure and Eventually Pay Off Debt in SA

      Save Your Home: Avoid Foreclosure and Eventually Pay Off Debt in SA

      Whether you are just about to lose your home or the foreclosure is days away, there is something that you can do. A lot of homeowners in trouble simply refuse to admit that they have a problem. If you can’t make your bond payment, or if you are struggling to pay other bills… you have a problem, and need to deal with it. Your creditors and lenders may not seem sympathetic, but they do want to be paid and are willing to be part of the solution if you will make them an offer.

       Timeline

      If you are behind on your loan payments, you should begin receiving mail from your lenders first scolding you and later on encouraging you to work something out. If you cannot work out an arrangement with the lender, then the lender will file an action to foreclose or to hold a trustees’ sale. Right up until the day of that sale, you have the ability to reinstate your loan or to negotiate some settlement with the lender. Various banks offer different assistance programs to distressed homeowners who want to sell the property before foreclosure.To remedy the situation, the homeowners must pay off all the debt plus any fees associated with the foreclosure.

      Avoiding Bad Loan and Predatory Lenders

      Some lenders specialise in lending to homeowners who are in financial trouble. Debt consolidation can be described as loans when you “take several smaller, hard-to-pay loans and rolling them into one big impossible-to-pay loan.” Every time you borrow money, there are additional charges that make your debt bigger. Borrowers are often fooled by teaser interest rates that jump to a much higher rate if you are even one day late on your payments. If you are having trouble paying today, rather than getting a new loan, renegotiate with your existing lenders.

      Assessing Your Current Situation

      It’s easier to give advice than objectively make a rational decision about personal finances. Many financial decisions can be emotional. If you are under stress, you may think that you are in worse shape than you really are.

      Okay, so let’s look at your current situation objectively:

      1. Increase Your Cash Flow

      If you currently have enough income to pay your bills, you might be able to get each of your creditors to either forgive your back payments or add your back payments to your account if you can show them that you are able to keep them current. If you don’t have enough money to pay your bills, ask yourself if there are any bills that you can eliminate.

      2. Control Your Expanses

      Cut Your Car Expenses

      Car expenses are a major pocket drain. I drove an old Opel Corsa I bought for next to nothing until I could afford to pay cash for a better car. It only had one working window, so I was rarely asked to drive anywhere. If you are struggling

      financially, consider downsizing your means of transportation, all the way down to a bicycle, if you can. Eliminating all the expenses your car produces can make a major swing in your cash flow.

      Start Eating In

      Eating out and buying prepared food costs several times what it cost to buy and prepare your own food. If you don’t cook, learn. It’s a good survival skill. Shop only once a week and make a list of what you need before you go. Study the store flyer and buy things on sale. My grandmother and I would shop only on Thursday and would go to three different grocery stores, buying only what was on sale at each store. She raised four boys during the Depression and could make a soup or stew with just a little meat that was a healthy and tasty meal. Occasionally take yourself and family out to a meal, and it will be a real treat.

      Tighten Your Other Expenses

      Another significant drain on cash flow is your utility bill. Learn all you can about ways to save money by setting your thermostat a little higher or lower, checking to make sure no plumbing is leaking. A little insulation or weather stripping can do a lot to keep cold air in or out. Although many now see air conditioning as a necessity, it was a rarity a generation ago, so you can live without it. Make it a game to see how much you can save compared to the same month a year ago. If you buy most things either with a credit card or by writing a check, go through your old bills or last year’s check register and look at every dollar you spent. Now write down the things you wish you had not bought. Were any of them impulse buys, things that seemed like a good

      idea at the time but that you regretted later? Learn from your past, and don’t repeat your mistakes this year. If you are a smart buyer, not an impulse buyer, you can save one-third or more of all that you spend.

      3. Increase Your Income

      It’s easier and faster to cut expenses than to increase your cash flow, but by doing both you can make a big change in your financial situation.

      Work more hours. If 40 hours a week won’t pay the bills, either try to work more hours on your current job or take on another job. Many work two nearly full-time jobs.

      When you are working, you are not spending. Sometimes you can even eat free. Some very successful people I know used to work a full-time day job and then work another job at night. Nearly every successful business owner at one time worked 16 hours a day or more to get his or her business started. It was a sacrifice being away from the family for long hours, but these people did what they had to do to pay the bills.

      When I started in the business, I not only worked long hours, I shared every expense that I could. I sublet my office to two others, and the three of us shared the expense of the rent, secretary’s salary, phone bill, and even the copy machine. We all did what we could to minimize our expenses because we had little cash flow.

      If you own a house and have an empty room, you could share your house expenses by getting a roommate. In fact, some clever students rent houses with several bedrooms and rent the other bedrooms for enough to live there rent-free.

      There are endless ways to make extra money from home, from making phone calls for pay to tutoring others in whatever you are good at. I have made a part-time career in teaching others about money. You may have another gift like cooking, or photography, or computers that you could teach others.

      4. Stop Paying Interest

      Poor people pay interest, rich people collect it. Which do you want to be? Poor people not only pay interest but they pay at a higher rate. When wealthy people borrow, they get the best possible rate, but the poor borrower will pay a high rate. Not fair? Maybe, but you can’t change the system, you can only change the way you acquire things. Set a goal to first stop paying interest, and then to become an investor so that you can start collecting it.

      The first step in not paying interest is to stop borrowing. If you have balances on your credit card and are paying interest, lock them away (or cut them up). If you have a big car loan, do what you need to do to get rid of the car and the loan, then get the transportation you can afford to buy for cash. To get rid of your debt, target the smallest one, and pay it off. As soon as you pay off the smallest one, target the next smallest one, and pay it off until you are out of short-term debt.

      You can use this strategy to pay off all of your debt. Owning your home free and clear will give you a sense of satisfaction and accomplishment for the rest of your life.

      Debt is not necessarily a bad thing. Investment real estate is often financed. The key is not to borrow more than the property’s income can repay.

      Serious Questions about Your House Today

      What is your house worth today? You don’t need an appraisal. You can get online on your local property appraiser’s Web site and check what other properties have sold for in your neighborhood this year. As an alternative, call Realtors who have property for sale in your neighborhood and ask them for a list of recent sales.

      If you did not own your house, would you buy it again today? If your answer is yes, but at a lower price, then you should try to keep the house but ask the lender to rewrite your loan for a longer-term or at a lower interest rate, to lower your payment.

      Why did you buy it? Is the reason that you bought it important enough to fight to keep it? If so, fight! If not, if the house is a tremendous burden, offer to deed it to the lender in lieu of foreclosure.

      Can you afford to keep it with the income and other expenses that you have today? Are you willing to work more or to sublet part of your house to increase your income to a level (or cut other expenses) that will allow you to keep the house?

      Communicating with the Lender

      Keep good records of your payments and correspondence with the lender. You might assume that an institutional lender would keep perfect records and never make a mistake. But you would be wrong. People at the bank are entering your payments, and any time people are involved, mistakes are made.

      You probably pay your payments with a check or the bank is making direct withdrawals from your account. Either way, you should be able to reconstruct from your bank statements how much and when you paid the bank.

      Take the time to review your payment history before you contact the lender. If you begin making partial payments or make a lump-sum payment to bring the loan current, keep careful records. Sometimes a borrower will make two or more payments with one check and the lender will give him credit for one month’s payment and use the rest to pay down the principal.

      If you are behind in your payments, the lender will typically write to you and give you a number to call regarding your account. Much of your communication is likely to be over the telephone. If you are able to reach an agreement to modify your payments, the lender typically will mail or fax you a copy of the agreement with the terms spelled out. Make a copy of this agreement or scan it, and put it someplace safe.

      Things That You Can Do to Help the Lender

      When you ask lenders to help you by modifying their loans, they have to be able to document that the only way they are going to be repaid is to modify your loans. They will be looking for documentation from you that proves your case. If you want your payments reduced, then you need to show proof that your income is not sufficient to make the current payments. Perhaps your payments have adjusted upwards, or maybe your income has dropped.

      If you are asking them to accept a short-sale offer, then they are going to want proof that the properties around you are selling for less than what they sold for a year ago.

      If you want to deed your house back to the lender, it will want proof that this option is your only one other than bankruptcy. A document that you have no other assets and that your income cannot support the house.

      Buying or Renting Another House

      If you are able to sell your house or give it back to the bank, you should be able to negotiate a month to move to give yourself a chance to find another house to move into. Ironically, after you get out from under your old house loan, you become a better credit risk. Although a banker will not be anxious to make you a new loan for

      about two years, many landlords and sellers will be willing to rent or sell you a house. If the real estate market is depressed in your town, it’s a great time to buy. Look for a landlord who will allow you to rent with an option to buy or for a seller with a vacant house who will sell to you on terms.

      Buying using a lease option typically will give you the lowest monthly payments. With a lease option purchase, generally, the seller still pays the taxes and insurance. This keeps your payments lower than they would be if you bought the same house, even using owner financing. The advantage of buying with owner financing is that you can often get a longer-term. Your credit is probably damaged, so any chance of a conventional loan in less than two years is remote. If you can negotiate a five-year term or longer with owner financing, it will give you a good chance to get your credit in order and shop for the best long-term loans. The third option is to find an affordable rental and begin saving your money for the down payment on your next house. The advantage of renting is that you can get a lot of house for less than what it would cost you to buy, and it’s safer. If the roof or your furnace fails, you have little or no responsibility. If you can find a long-term rental, you can stay in one house, avoid the costs of moving again, and save up for your next home purchase.

      Conclusion

      There are always foreclosure opportunities. When the housing market is soft, there are extraordinary opportunities to buy at deeper discounts and on terms that are rarely available in a normal market.

      In one year, you might acquire what may take five years in a normal market. Have a buying plan that keeps you from overbuying and becoming a distressed owner yourself. Have a plan, and follow it: Buy the best properties you can afford at deep discounts and on great terms, and enjoy and share the wealth you accumulate. You can profit from buying foreclosures and help owners in your community who have no other options.

    • What Are The Costs Of Selling Your Home in SA?

      What Are The Costs Of Selling Your Home in SA?

      Many homeowners list their house, not taking into account what it will actually cost them. There are fees and expenses you should be aware of before you list with an agent. In this post, we will let you know what costs to expect when selling a home in Johannesburg!

      There are many things to consider before you decide how to sell your home is South Africa! Keep in mind, listing your house will cost you money both up-front and once the property closes. You must factor this in when pricing your house and deciding who you want to work with.

      The average amount it takes to sell a house in SA could cost upward of R150,000! That’s a lot of money! Keep in mind, that number varies widely based on where you live and the price of your home.

      Will Selling Cost You Money in South Africa?

      Agent Commissions – Commissions will typically run about 6-7% of the final sale price of the home. You will know the agent’s cut when you sign your listing agreement. While this money isn’t paid upfront, it is deducted from the amount you walk away with. Keep this in mind when pricing your home.

      Agent Fees – Depending on the agency, there might be additional fees charged throughout the selling process. Some agents will pass on marketing and listing fees directly to their clients. Make sure you know what’s included and what you will have to pay for when all is said and done.

      Closing Costs – Closing costs include many items that are paid at the closing table. These include bond cancellation fees, transfer taxes, appraisal costs, electrical and gas certification, and more. Expect to pay about 2% of the final sale price in closing costs.

      Taxes – When you list your home for sale, you are responsible for the property taxes, utilities and house insurance up until the day of closing. These amounts can add up to thousands should it take a few months for the property to sell and close. Once you decide to sell, the sooner it happens, the better!

      Preparing Your House for The Market – There is a lot of energy, time and money that go into getting a house ready to sell. There are repairs to make, walls to paint and carpets to clean. You will want to remove personal belongings and stage the home for selling. Whether you work with a professional or do it on your own, you are likely to spend money on new decorative pieces in the house. You should also clean up the yard but also consider some new landscaping to bring more curb appeal to the property.

      Inspections – While it certainly isn’t required, more and more sellers are paying to have their home’s inspected before listing them. This will cost approximately R3,500 and up. By doing an inspection before you list, you will be able to address any issues with the home before they pop up in your buyer’s inspection. This will also give you negotiating power during the selling process.

      Storage and Moving – While moving isn’t technically a selling cost, it is a large expense you will have to make once the house closes (if you haven’t done so already.) Whether you hire movers or do it yourself, moving can get expensive! How far are you going? Will you need a truck? You will also want to consider storage costs if you are living in the home while waiting for it to sell. Packing up unnecessary items ahead of time will make the house look nicer and give you an edge when it’s time to move.

    • 4 Tips for First Time Home Sellers in Edenvale

      4 Tips for First Time Home Sellers in Edenvale

      Buying and selling a home are two very different processes. First time home sellers may not know all that goes into successfully selling their house. It takes some work to find a buyer while getting the price you want. There are many moving parts to the process, but there are some things that may help you make your first time selling a home experience easier.

      4 best tips for first time home SELLERS! 

      The Price is Right

      You want to get as much money for your house as possible. Who wouldn’t? Many homebuyers make the mistake of being overly ambitious when it comes to the price their house will sell for. The day your house hits the market, it should be priced correctly! Don’t price high and hope to snag a buyer. Your listing will slowly drop down the line and a high price up front will get it overlooked. Plus, potential buyers will be able to see any price changes you make. Continuously dropping the price will make you appear like a desperate seller or as if you don’t know what you’re doing. It can also give the impression something is wrong with the house because you aren’t able to get your asking price. Do your homework, and price the property correctly from day one.

      Pack Up Before You Sell

      Selling and moving go hand and hand. Do yourself a favor, and pack up before listing your home. Box things up and put them in storage, the basement or even the garage. Removing as many of your personal effects as possible will make potential buyers feel less intrusive when they are viewing your home. In addition, your listing photos should be completely free of clutter. Ads with personal items front and center often get scrolled past. Packing up your non-essential items will save you a ton of work down the road. Getting this out of the way early will make the moving process much easier for you. 

      Don’t Say No To a Showing

      It might seem a little inconvenient having strangers walk through your house at any given moment, but you need to make viewing of your house as easy as possible. If your agent has a buyer who wants to see the house at 9 pm, let them. If your house is all packed up, short notice shouldn’t be too much of a hassle. Do whatever you can to get your house seen. Don’t limit your showings to certain times or alienate potential buyers in any way. You can’t rely on an Open House to sell your home. In fact, the vast majority of houses sell through direct showings. Being hospitable and flexible to potential buyers will set the tone for a positive, future transaction! 

      Pictures Say A Thousand Words

      We can’t stress this one enough. Good photography is one of the most important things you will do when selling your house. Advertisements using bad photography, or with cluttered, messy or highly personalized rooms will likely be looked over. You have only a few seconds to capture someone’s interest when they are looking through listings, and you do this with amazing photography. Your house needs to pop! It has to stand out and make people click on your listing to find out more. You should consider hiring a professional if your listing agent hasn’t already. You might also consider creating an online virtual tour, or using drone photography.  Selling your house doesn’t have to be overwhelming or scary. Hiring the right team of professionals to guide you, will ensure you get the price you want in a timely manner.

    • Is Cash For Houses In Jozi Right for You?

      Is Cash For Houses In Jozi Right for You?

      You’ve seen the signs at almost every street corner or painted on someone’s wall, “Cash for houses” or “We buy houses.” Some of these are cartoonish signs and others might even be nailed to a light pole or street sign. Some cash for houses signs makes claims they buy houses in any condition and for competitive rates and all cash. If you need or want to sell your home, this looks like the perfect opportunity to sell quickly without the headaches of preparing a property for showing……

      You’ve seen the signs at almost every street corner or painted on someones wall, “Cash for houses” or “We buy houses.” Some of these are cartoonish signs and others might even be nailed to a light pole or street sign. Some cash for houses signs makes claims they buy houses in any condition and for competitive rates and all cash. If you need or want to sell your home, this looks like the perfect opportunity to sell quickly without the headaches of preparing a property for showing.

      Their Target Market 

      The individuals and companies putting up these signs are investors seeking quick, undervalued properties to capitalise on. By putting signs out, it takes a lot of the legwork out of researching distressed properties and homes in wanting to sell quickly. 

      The key target market includes homeowners in some negative financial situation. This includes people facing bankruptcy or foreclosure, medical issues, divorce or damaged properties in complete disrepair. They also hope to find properties transferring ownership from auctions, vacancies and even existing listing that are about to expire.

      The Thought Process Behind the Offer

      Because investors are seeking properties for quick turnaround and profit, they want motivated sellers and properties in distress that can be rehabbed quickly for resale. As the seller, this may or may not be your best play. The buyer is looking to ease your burden quickly. They know you have some emotionally binding stressor that requires a quick sale.

      As a result, the offer might be for the remaining bond balance irrespective of the value of the home. At best, investors want properties at a wholesale price, which is often below fair market value by at least 30 percent. 

      So why such a big bargain? Well like all investments, property has its fair share of risk. Just like the stock market investing cash in properties that require substantial renovation and to hold on to that property, which may take 3 to 8 months on average comes at a cost. To protect the investment these investors, use strategies that come at a cost to them. So, to make sense of a deal they need to work in those cost.

      Consider Your Position Before Negotiating

      Keep in mind there is a cost to keep a home. Everything from monthly bind payments, insurance, and property taxes must continue to be paid while you own the home. The longer you delay a sale, the longer you must pay for utilities, maintenance, and upkeep.

      Also a fact that is not well known to sellers are the cost needed for professional inspection on electricity, plumbing and gas. These will need to come out of your pocket for a buyers bank to agree upon the purchase of the property.

      Do the math then consider the average time it takes for homes to sell in your market. Based on average pricing, will you make up the difference in the cost of maintaining the home for the extended time frame? 

      It may also be urgent to sell because of an impending foreclosure or estate tax. Consider all these factors as you begin to look at offers from buyers. 

      What’s Their Intentions?

      Some might argue that these investors are predators, and there are a few who give other investors a bad name, the experienced investor often seeks to provide a service. How you may ask? They do this by providing opportunities to sellers who need to get out of tricky situations. While banks offer the most bang-for-buck there are times when the process to sell a home or wait for a buyer might be more of a hindrance financially. Lets take a look at a case-study of Sarah.

      Sarah, a full-time college student, had been living in her dads house with her mom for most of her life. Unexpectedly and sadly, Sarah had lost her dad a few months earlier. Unfortunately, Sarah was unable to keep up with the cost to maintain the house as a student with no income. To make matters worst the property was in arrears with the municipality. Due to her inability to pay off the fees associated with looking after a property as well as looking after her ageing mom, the municipality cut off their electricity.

      Sarah’s only option was to sell the house. Having researched the market and having spoken to some real estate agents she realised that she would need to put money into the house to make it attractable to buyers. The agent also told Sarah that the average time it took to sell a home in her area was 3 to 6 months. With college coming to end and her final school fees needed in order to receive her qualification, Sarah knew this was not the best option.

      Fortunately, Sarah had found a reputable investor who was willing to pay cash for her house. Having met the investor, the investor provided Sarah with options, a a result the investor was able to buy the house cash for reasonable discount. The investor allowed Sarah to rent back property while she completed her studies. Sarah was able to pay off her debts and with a significant portion of cash leftover, she was able to conservatively sustain her living standard until she found a good job. 

      Maximising the Sale Value

      It doesn’t take a lot of research to get an idea of a property’s fair market value. If you really want to know, pay a couple thousand rand for an appraisal or simply speak with a local real estate agent who will give you an idea of the value of your home in its current condition. 

      Once you know what the estimated value is based on current market conditions, look at what can be done quickly and inexpensively to improve the property thus increasing the value. 

      Do what the investors would do. These include cleaning the home inside and out, remove all weeds in the landscape and trim trees and bushes back. Replace carpet, tile the bathroom and kitchen and repaint the inside and out. They can provide the most attraction in some cases. Investors often will redo a kitchen and put in a new appliance package, thus making their margin on the property obtained at 30% below market value. You don’t need to do this, but if you have the time and money to do so, it might be worth the investment. 

      The bottom line is if you can extend your timeline of a need to sell, you can wait for a more traditional buyer to come along and give you an offer that puts some money in your pocket.

      IF YOU NEED HELP SELLING YOUR PROPERTY FAST, CLICK HERE.