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Property Talk

Property Talk

Author: Andreas Wassenaar
Date: 2017-02-24

"Every person who invests in well-selected real estate in a growing section of a prosperous community adopts the surest and safest method of becoming independent, for real estate is the basis of wealth."

Theodore Roosevelt (October 27, 1858 - January 6, 1919) - 26th President of the United States, American statesman, author, explorer, soldier, naturalist and historian.

This quote is as relevant today 100 years later in our growing Dolphin Coast than it was at the time in the US. Property is the basis of wealth creation and the amazing industry of mortgage finance that has developed to support it creates an extra-ordinary opportunity for almost every person to get onto the property ladder at whatever level they can afford and start creating the basis of wealth for themselves and their families.

If it is true that you earn your money in real estate when you buy rather than when you sell, the importance of buying right becomes evident. To assist buyers in doing just that I would like to offer the following five tips in preparation of your assault on the local property market.

1. Have your finances in place. Know your affordability threshold and have a clear understanding of what portion of the price will be financed by means of a cash payment and what will be required by means of mortgage finance. Know exactly how the banks assess mortgage applications and the related costs to raising finance. Once a buyer fully understands this aspect, he will be able to negotiate with confidence knowing the value of his credit worthiness and the cash position being brought to the table.

2. Have a clear understanding of the market you are hoping to buy in. This familiarity will start with research on what is currently available for sale. The deeper insights may require the assistance of a professional realtor in order to access deeds office data on transaction histories within the suburb, estate and even street. This information will help formulate your understanding of relative value and what you may be prepared to pay for a certain type of property. The average rate per square meter, the rate at which properties are currently trading at and the subtle differences in localities within the area are essential aspects to an expert's understanding of the market.

3. Prioritize your requirements and the key aspects you are looking for in the property being considered. Knowing what you want and like and what will work for your family is essential. Involve your spouse, partner or family members in the search to ensure all are on the same page. I have had first hand experience of transactions being derailed by a disagreeing spouse, even after the negotiation process. As it is rare to find a property that will meet 100% of your specific requirements, it is important to have a list of priorities that you hope to satisfy.

4. You don't get unless you ask. Do not shrink back from making an offer at the value you perceive and augment the offer with additions that can be included. While you are pushing for agreement, there is a window of opportunity to try and secure value added aspects to the sale. These could relate to including certain movables and soft furnishings or specific terms of delivery and occupation. Keep the conversation positive and respectful at all times. It is exactly here that realtors add exceptional value to the negotiating process. Buyers and Sellers can often be like sandpaper together and due to the typically high emotional investment in a residential property transaction, it is far better and advisable that the agent act as the go-between and facilitator.

5. Be ready to perform quickly if agreement is reached and ensure that the seller knows and understands this ability on your part to perform. In a world where talk is cheap and performance rare this will translate into a clear financial advantage for you.

For further information and an interactive analysis of this article follow my blog: andreaswassenaar.blogspot.com.