PUTTING FIRST-TIME HOME BUYERS AT EASE

Buying a first home can be a very daunting process, but some good advice from a knowledgeable and caring agent can go a long way in easing tensions and dodging any potential pitfalls. With this in mind, BILLY SUTER approached some Dormehl Phalane Propery Group (DPPG) agents to offer advice that could help the first-time buyer.

THE first must-do when it comes to considering buying a home for the first time is to ensure one deals with a reputable estate agency that is registered with the Estate Agency Affairs Board (EAAB). Also, make sure the property specialist you work with is registered as well.

These words of advice are from DPPG’s Natashee Henn, director/manager of the DPPG Vereeniging branch, who adds that potential home buyers should note that agents should show proof of both registrations.

Save up a deposit and funds for transfer and bond costs, Henn further advises.

Never apply to only one bank when applying for a bond, she adds. Always apply to all the banks, as well as SA Home Loans, so you can choose the best deal with the best interest rate.

“Bond originators are your best option when applying for a bond as they specialise in this field. Your property specialist will recommend the best bond originator in your area. Standard Bank assist first-time home buyers with additional funds to cover their transfer and bond costs if they qualify.”

Henn also advises that first-time buyers do their homework on selling prices in their chosen area – before they start shopping for their dream homes.

“Educate yourself before you buy a property in a suburb. For instance, your property specialist should explain an offer to purchase to you before you sign.”

She adds: “Never sign a page where there is a blank space. Always ensure everything is completed. You should get a copy of the contract after you have signed.”

Karen Dennyschene, manager and selling agent at the Dormehl and Phalane Group’s Umhlanga branch, believes the first-time home-buyer’s primary goal is to save for a deposit.

“Then get qualified to see what you can afford. Do not be discouraged if you fall short as there are other alternatives, such as investing with a partner. However, be very careful and seek legal advice to avoid any pitfalls,” she adds.

Dennyschene also advises on deciding ahead of time where you want to live, taking into account travel time to work, closeness of schools and the like.

“Find an estate agent that knows the area well and understands your needs,” she suggests.

“Also, consider the worst property in the best area. Sometimes a shabby little apartment can be snapped up at a good price. You can take your time renovating and will reap the rewards in time.”

It is also wise to be informed, she advises: “Read as much as possible – there is a lot of valuable info on various property websites.”

Valerie Munro, principal of Business Unlimited Consultants, trading as DPPG for Northern Suburbs, Cape Town, also agrees that pre-approval for a bond, and knowing what you qualify for, narrows down property searches for the first-time home buyer.

“Secondly, make sure your taxes are up to date and that you don’t owe any monies to SARS,” she advises, adding that once ready to sign an offer to purchase, the buyer should ensure he or she has money saved for unexpected expenses – such as water, rates, electricity, life and house insurance.

“Security needs to be taken into account too, as well as neighbours. Take time to fully check out a property – view it early in the morning as well as during peak time traffic, weekends and in the afternoons when neighbours return home from work. Your neighbourhood is extremely important if you want to live happily ever after.”

Munro also suggests considering if one requires a landline or wi-fi: “Make sure that provision for this is made and, if not, how long this can take. Make sure this meets with your needs.”

She also says one should not solely rely on a bank evaluator’s opinion about house structure and defects when valuating a new property, and adds that it would be a good idea to look at the interest rate before accepting a bond as this can be negotiated depending on one’s credit score.

“You can negotiate dates and fees with attorneys,” she adds.