Here's why home sellers need to look beyond price
Category RealADVICE
The current real estate market conditions still favour buyers, so most home sellers are quite focused on getting any offer to purchase that is reasonably close to their asking price.
"But there are usually also many non-price terms to be successfully negotiated before a deal can be concluded, and they should not lose sight of these," says Gerhard Kotzé, CEO of the RealNet property group.
"These factors include any deposit to be paid, the bank valuation of the property, financing and buyer's ability to secure a home loan, electrical system and other inspections (and who's going to pay for them), what fixtures and fittings are included in the sale and the occupation date and any rental payable."
The occupation date, for instance, can quickly become a sore point unless it is agreed on from the start, he says. Should the seller wish to occupy the residence for a certain amount of time after the transfer of ownership has gone through, this has to be taken into consideration. Similarly, if the buyer wants to take occupation before transfer, then the amount of occupational rent payable has to be agreed and written into the purchase contract.
"Bank valuations and electrical compliance inspections also cost money and there can be questions about who should foot the bill for these? It is usual for the buyer who is applying for a home loan to pay for the bank valuation, but what if it is a cash deal? And in our experience, it is advisable, if possible, for the property seller to organise any electrical, plumbing and gas inspections and safety certifications done before listing the property for sale."
Kotzé says that fixtures and fittings can also become a cause for acrimony and it needs to be clearly set out in the sale agreement which fittings the seller will remove or leave behind. These could include bespoke curtains or blinds, for example, built in bookcases or appliances, water features and even ceiling fans, light fittings and pool pumps.
"And if the home is being sold furnished, as many holiday homes are, the sales contract should list all the items that are included, from chairs and tables to mirrors, artworks and carpets.
"The reality is that buyers are also on tight budgets these days and also want to squeeze as much they can out of the transaction - so that when tensions mount during price negotiations, even minor issues and differences of opinion can become dealbreakers.
"This highlights, once again, the importance of having an experienced property professional involved as a third party negotiator who is able to anticipate and deal with all potential issues in a calm, unbiased fashion, ensure that both parties understand all the terms of the sale agreement and bring the transactions to a successful conclusion."
Author: RealNet
