Everybody want a cheap stand or house that they can pay for and still remain with change which they can then use to meet more needs of life like a new car or the latest smart phone. Cheap and legitimate properties can be found from some sellers who sell under desperate circumstances. However, these desperate sellers are smarter these days because instead of lowering the asking price they offer concessions in other parts of the deal. If one wants a cheap property its advisable to look for these properties that are cheap in this sense because when a seller is prepared to negotiate a sale rather than saying he accepts whatever low price he is somewhat demonstrating his or her genuineness. Home seekers should therefore, be wary of property values that are too good to be true. After all people do not always become so desperate such that they sell their house. If your sellers are smart you also should be smart in order to win the negotiations game. To this end this article will endeavour to give you some of these must-know concessions as follows.
By Cain Ndhlovu of Property Matters News
Longer payment period.
Since the majority of property sellers are individuals who sell in order to meet immediate needs the market is dominated by payment terms that hardly go beyond about four months. So if a buyer can negotiate a longer payment period then this can also be taken as a cheap buy especially considering the fact that individual sellers are reluctant to charge interest and if they do the rate is usually concessionary.
Smaller deposit
The open market deposit is usually fifty to sixty per cent so if a seller accepts an amount of the deposit less than this range then he would have given a great concession in favour of the buyer.
Offer to pay name transfer fees
Conveyancing fees or name transfer fees are the responsibility of the buyer but sometimes they are a shocker as most people do not budget for them because many do not know that over and above the asking price as advertised there are costs of purchase. So if your seller offer to pay for these costs in a sense he would have agreed to sell the stand or house at a discount.
Acceptance of a bank loan as mode of financing
Many sellers snub bank loans because it takes about three months after signing an agreement to get the cash into their accounts. So if a seller accept a loan it can also be considered as a concession in favour of the buyer because the majority of the people can not purchase real estate with cash from their pockets.
In order to do justice to the issue under discussion I think its also important to explain in more detail why people need to be wary of some too cheap to be true properties. What you need to know here is that some people discount their properties so that they sell fast because these properties have some issues they want to get rid of by selling to unsuspecting buyers. So if it happens that you become attracted to a cheap stand or house for sale you must do a precautionary check on the following areas.
Unregistered deceased estate
Some beneficiaries of a deceased estate can become impatient such that they begin selling houses or stands of the estate before the legally required registration is completed at the High Court or Magistrates Court. This can put your home ownership dreams into jeopardy because the outcome of court processes is always uncertain.
Construction company being remunerated through stands by a land developer.
Many construction companies that execute the physical development of land are paid through stands by a developer for their services and there is nothing wrong with this creative arrangement. The problem can come when these companies pose as signatories upon the sale of these stands before the developer legally transfer ownership of the particular stands to them through cession or title deeds. If you buy these stands under these circumstances and if there will be a nullification of the contract between the construction company and the developer for whatever reason you stand a very good chance of losing your hard earned cash.
Demolition candidates
Some unscrupulous sellers having become aware of the fact that their property no longer have structural integrity and it has therefore, become a demolition candidate they sell it fast to unsuspecting buyers lured by a low price. So it is important to thoroughly inspect a property before buying – once you sign an agreement of sell it may be difficult to reverse things because in the contract there is the so called voetstoots clause that usually goes like The property is sold voetstoots ( as it is ) and the seller shall not be liable for any defects patent, latent or otherwise in the property nor for any damage occasioned to or suffered by reason of such defect.
There are more other areas you can do precautionary checks on but the aforementioned suffice for now.
DISCLAIMER : THIS ARTICLE DOES NOT BY ANY MEANS REPLACE THE ADVICE THE READER SHOULD GET FROM HIS OR HER REAL ESTATE ADVISERS.
