Home buying tips for the current market
Category Residential sales
Home buying tips for the current market:
There is currently a shortage of well-priced residential properties. For several years after the 2009 recession there were more homes for sale than buyers, and buyers were able to easily find the property of their choice.
Historically low interest rates and steadily rising demand have however absorbed a lot of the excess stock and developers are still cautious to bring new projects to market which has caused a clear shortage of homes for sale in many popular areas. Increasing numbers of buyers are having to compete with other prospective buyers for the properties they want.
A lot of lower-priced homes are now being sold for cash to buyers who have spent the past few years preparing for homeownership by ruthlessly eliminating any debt and saving up every spare rand so that they won’t have to take out a home loan. It is difficult to compete with such buyers unless you too have cash in hand – at least for a sizeable deposit and all the transaction costs.
If you do need a home loan to finance your purchases you need to clean up any blemishes on your credit record and work with a reputable bond originator to obtain pre-approval for a home loan before you go house-hunting. This will give a seller the confidence that if you do make an offer to purchase, you will be able to obtain the necessary loan and go through with the transaction.
Your debt-to-income ratio is one of the first things lenders look at when it comes to assessing how well you'll be able to afford home loan re payments, so it’s important to have as little debt as possible before you start the process of looking for a new home.
Actually visit the area you are interested in purchasing in, and work with reputable property brokers such as Urban Link professionals who are familiar with these markets and the actual sales prices achieved.
It is wonderfully convenient that you are able to go through home listings online as you are able to narrow down your choices to homes that meet your needs and your budget. Also visit an area at different times of the day and week to get a feel for what it’s really like. However there is no substitute for a trained and reputable agent at Urban Link who knows the local property market and is prepared to share their expertise.
Take your time when viewing selected properties. Its all too easy to miss things that could be expensive to repair in the excitement of finding a home you like and in the heat of a ‘bidding war’ with other buyers. Do not let yourself be pressured into making an offer unless you are absolutely satisfied that the property is sound and in good condition.
Finally try to leave emotions out of things when viewing properties and making offers. That is where your property broker can be most helpful and guide you through tricky negotiations, as they will remain calm and collected throughout this process on your behalf.
Author: Urban Link