OPINION: Paying the right price for a property
JOHANNESBURG - Many people dream of buying a house for years and are confused as to whether they are purchasing the property at the correct price or over paying.
However there’s more to a home purchase than picking your favorite property.
It’s important to understand all the steps of buying a house as well as what to look for when buying. What questions to ask? Whether the property is priced correctly. You don’t want to make any hasty decisions when buying a house especially your first one.
So let’s walk through some of the more important processes to help you when you ready to purchase a property.
Here are a few things buyers should take into consideration when purchasing a property:
- Location of the property. They say that the three most important things to think about when buying a home are location, location, location
- The condition of the house. Beyond location, look at the state of the home.
- The Neighborhood.
- The Size and the Floor Plan.
- The Bedrooms and Bathrooms.
- The Kitchen.
- The finishing touches.
- Amenities in and around the suburb.
- Boomed off or access controlled areas.
- Zoning of the property.
- The above are few things which play a major role in the purchase price of the property.
Rates and Taxes have no effect on the purchase price. Rates and Taxes are given by the local municipality changing the rates and taxes accordingly.
Market has a big influence in the property prices. The reports are monitored with deeds registrations and can be retrieved from companies such as lightstone, SAPTG and winded to name a few.
Agents also compile a comparative market analysis (C.M.A) where they study the past market compared to what is currently on the market and the condition of the property in order to do an evaluation.
The major financial institutions in South Africa that supplies buyers with their property finance will work with companies such as lightstone to find suburb statistics and more importantly their own independent valuators to finalise the value of a property in a suburb that they are willing to take the risk in financing.
The seller and agent can’t control the price to what the property will sell for at the end because if a property is overpriced the bank might not find value in the property and finance it.
The options to the buyers are endless making it easier for buyers to compare prices before making a decision. So buyers don’t wait to buy real estate, buy real estate and wait.
Saajida Ellahi is a Sales Associate at Keller Williams Clockwork.