5 Questions to ask before buying or selling

Buying or selling a home requires a clear understanding of the process. Asking the right questions is crucial to getting reassurance. Here, I'll explore the top five frequently asked questions about buying and selling property and provide answers to help you navigate buying your own property.

1. How is my property valued

A property's value depends on many factors, including location, size, age, condition, features, and amenities. Using comparative market analysis (CMA), real estate agents determine the market value of a property based on recent sales of similar properties. They'll also assess market demand and supply, current economic conditions, and any unique features or improvements that the property has.?

With a wealth of information available to both sellers and buyers, it is vital that you price your property right from the start.

2. Where is the most attractive area to invest in?

This question is similar to asking how long a piece of string is. This is because it depends on a vast number of factors, including the type of property, the desired return on investment, surrounding amenities, safety and security, and individual preferences.

Generally speaking, property all over South Africa is a worthwhile investment. However, property investments need to be actively managed in order to grow.

Depending on individual needs and preferences, a trusted property advisor will help you look at factors like location, future developments, and the like if you’re looking to make a long-term investment. Property tends to be a very personal investment, and each person has their own needs and wants.

3. Is an offer to purchase legally binding?

Yes, a signed offer to purchase is a legal document that is binding.

The document outlines the purchase agreement, which includes the terms and conditions related to the property in question. Buyers agree to the terms stipulated in the documents, including the price they are willing to pay, by signing the offer to purchase.

The document becomes legally binding if the seller accepts the buyer's offer.

The bottom line is that you need to be very sure about a potential purchase before signing on the dotted line.

4. How long is an electrical compliance certificate valid?

An Electrical Certificate of Compliance (ECOC) is valid for a period of two years. It is compulsory to be in possession of this document when selling a property, as per the requirements of the Occupational Health and Safety Act under the Electrical Installation Regulations provision.

The ECOC guarantees the condition of the distribution boards, wiring, earthing, and bonding of all metal components.

5. What happens after the bond is granted?

• The bank instructs a bond attorney to register the bond at the deeds office, and the seller instructs the transferring attorney to transfer the property.
• The bond attorney notifies the transferring attorney of the draft deed of transfer and guarantee requirements.
• As soon as the cancellation attorney cancels the seller's bond, the transferring attorney?receives the title deeds and cancellation figures and sends a copy to the bond attorney.
• After this, both the buyer and the seller sign the transfer documents. Rates, taxes, and transfer duty are paid by the transferring attorney and the buyer is responsible for the transfer costs.
• After all the documents are signed and costs paid, the transfer, new bond, and cancellation bond documents are prepared for lodging at the Deeds Office. It takes the attorneys about three weeks to check and prepare the document for registration.
• On the day of registration, the bank pays the loan as per the guarantees issued.?

I hope this guide was useful to understand the process, timing, parties and costs involved in buying your dream home. For more information, reach out to our dedicated team of professionals at Huizemark Sandton today!