OTP Heads-up for Purchasers, Sellers and Agents

Here are some pointers & tips when finalizing / negotiating an Offer to Purchase. From our own experience as well as from speaking to many buyers and sellers over the years, it is clear that there are often unhappiness in both camps after the Offer to Purchase has been concluded due to issues that were not clearly specified at the time that the offer was presented and accepted.

Although some of these issues might seem insignificant, a lot of unhappiness and unnecessary stress can be avoided by making sure these issues are covered, in writing, and accepted by all parties involved.

Fixtures and Fittings

The Offer to Purchase has a “fixtures & fittings” clause, and even though this is standard practice, often this clause is quickly brushed over and not clearly explained. Sellers should know that purchasers are buying the property, as they saw it, voetstoots, with all fixtures of a permanent nature included … if not specifically excluded. 

Items such as, curtain rails, blinds, shower heads, towel rails / hooks, toilet seats etc. may not be removed. Anything that is bolted to the walls, shelves, handrails, light fittings, motion / light sensors, security systems are seen as fixtures. Bathroom vanities and mirrors that are hanging on bolts or nails are also seen as fixtures and cannot be removed unless specified. Even if you intend to replace the item with something similar, this needs to be disclosed and agreed upon by all parties.

We recently had a case where a light-fitting with 3 similar bulbs was working during the time that the property was advertised and viewed by the purchasers. The photos also confirmed that there were three similar bulbs (the kind that stays on for a while during loadshedding). At the time that the electrical compliance certificate was done, the one bulb was faulty and was then replaced with a different, normal bulb without notifying anyone … needless to say, the purchaser was very unhappy when they took occupation and saw that the lights were not the same as when they came to look at the property. Several items (fixtures) were also removed from the property without notifying anyone. 

When negotiating an offer, make sure that everything is mentioned, agents need to make sure that their sellers understand the definition of a “fixture” and the importance of specifying which fixtures (if any) will be removed and or replaced.

DSTV Dishes, Fibre ONT boxes, brackets, cables / power supplies are seen as fixtures and are sold with the property unless otherwise specified and excluded, even the little fitting on the end of a DSTV cable is part of the fixture, but often removed by sellers.

Walls and Painting

What happens to all the nails and plugs for paintings, pictures & mirrors? This also needs to be clarified in writing. Did the purchasers confirm that they will be repainting / renovating the property?

Consider that if the interior of the property hasn’t been painted recently then the affected walls won’t be able to be “touched up” and will probably need to be painted in full. Should the specific paint color / name not match the existing paint 100%, then the whole inside of the property will probably need to be painted … possible options to consider taking into account that the property is bought “voetstoots”. 

A: Sellers need to remove all items and leave the nails in the walls “as is”. 

B: Sellers need to remove all nails, touch up and sand down the areas but do not need to paint.

C: Sellers need to remove all nails, touch up, sand down and re-paint or touch up with paint. 

Plumbing, Gas and Electrical

Although sellers need to present purchasers with a mandatory disclosure form outlining any known defects, purchasers need to confirm the following:

  1. That there are no water leaks in the kitchen and bathrooms. This is quite easy to inspect.
  2. That all toilets are flushing correctly.
  3. No obvious water leaks in the garden or around the property.

When it comes to the Electrical COC, the COC confirms that the property is safe. It doesn’t confirm that all electrical appliances are in a working condition. The offer should have a clause where sellers confirm that all electrical appliances will be in a good working condition at time of transfer. This will cover everything from light-fittings & switches, gate & garage door motors, pool & jacuzzi pumps, ovens, stoves etc. 

Although geysers are covered under the insurance, nothing prevents a purchaser from requesting (at the purchaser’s cost) that a plumber do an inspection on the geyser to make sure that it is compliant and that there are no leaks. Sellers should also consider doing this so that they have peace of mind and can provide purchasers with a report stating that all is in order with the geyser.    

Any permanent gas installations also need compliance certificates. Purchasers need to confirm if and how many gas bottles are included in the sale as fixtures. If not, the gas bottles need to be excluded.  

Last pointers

Apart from the mandatory disclosure form and the fact that the property is bought Voetstoots, the more information about the condition of the property you have the better. Putting your concerns in writing even on a separate addendum when buying a property will assist so that you don’t get any nasty surprises when the keys are handed to you once transfer has taken place.

Happy house hunting. For all our rental and sales stock, please visit www.steynrealty.co.za

Team Steyn

Wilgeheuwel Suburb Stats

Area Summary / Wilgeheuwel (Stats quoted from a recent Lightstone Report)

Wilgeheuwel Suburb

Wilgeheuwel is one of the main and most popular residential suburbs when traveling north from the Westrand / Krugersdorp area. Situated near Clearwater Mall and +/- 10km away from Cradlestone Mall along Hendrik Potgieter this area is extremely popular amongst Property Investors, Tenants and Homeowners as the area is very central with easy access to main roads when traveling for work towards the West or the North. Another reason why Wilgeheuwel is so popular is because of its property prices. The area consists mainly of Sectional Title properties with the breakdown looking as follows:

Wilgeheuwel Market Stock:

Freehold in Estates = 3.67% (165)
Sectional Title Units in Estates = 5.30% (238)
Freehold = 8.88% (399)
Sectional Title Units = 82.15% (3691)

Sectional Title properties contributing to 87.45% of the total market stock with 3929 properties / units. These units vary from 50m², 1 bedroom apartments / flats selling from R 400 000 to 150 to 200+m², 3 to 4 bedroom properties selling above the R 1 500 000 mark with some exceptions.

A total of R 328 transfers / sales happened in the last 12 months where 299 properties were Sectional Title sales between R 400k and R 1.5k. When looking at some of the demographics for the suburb, the average monthly household income range between R 40 000 to R 50 000 and most of the buyers are between 36 and 49 years.

Average property sales values for the last 12 months:

  1. Properties between R 400 000 and R 1 500 000 / 299 properties with a total sales value of R 258 781 000 = an average sales value of R 865 488.
  2. Properties between R 800 000 and R 1 500 000 / 169 properties with a total sales value of R 174 522 000 = an average sales value of R 1 032 674.
Area Growth

From our own experience, the following properties are extremely popular in the Wilgeheuwel area and if priced right, could sell within days of going to the market:

  1. 2 Bedroom 2 Bathroom Double garage properties listed between R 800 000 to R 950 000 …. These properties are roughly between 80m² to 100m²
  2. 3 Bedroom 2 Bathroom Double garage properties listed between R 1 000 000 to 1 300 000 …. These properties are roughly between 120m² to 150m²

Simplex (single level) properties are more popular than duplex (double level) properties and will attract more buyers. Duplex properties where all the bedrooms are on the same level at least is also more popular.

5 Factors that will make your property sell quicker (price excluded):

  1. Neat, well looked after property, no clutter … can still be old but neat.
  2. Light colours, tiles, laminate floors instead of carpets.
  3. Freshly painted walls, ceilings door / window frames & doors.
  4. Neat, well looked after garden.
  5. Additional extras such as gas hob, solar, energy saving fittings / lights, auto garage doors and good security.

If you are looking to get a true, market related valuation done on your property, give us a call, we work and stay in the area and will gladly assist we. We get daily enquiries for properties in the Wilgeheuwel and surrounding areas.

Call Juanita on 083 604 1231 or Marnus on 072 264 7806 or email us on juanita@steynrealty.co.za or marnus@steynrealty.co.za

All our stock can be viewed on our website at www.steynrelty.co.za and you are welcome to like and follow us on Facebook, Instagram and Twitter. We recently started a YouTube channel for all our virtual tours and other videos ….. please visit  https://www.youtube.com/channel/UCLGbOvvPjY6zMh2kAQDhHTQ

http://www.steynrealty.co.za

YOUR SALE IS OUR GOAL ….

SA Prime Lending Rate

Prime Lending Rate – South Africa

What is a Prime Lending Rate? / https://en.wikipedia.org/wiki/Prime_rate

prime rate or prime lending rate (PLR) is an interest rate used by banks, usually the interest rate at which banks lend to favored customers—i.e., those with good credit. Some variable interest rates may be expressed as a percentage above or below prime rate.

We had our first Monetary Policy Committee (MPC) meeting of the South African Reserve Bank last week. The MPC decided on 16 January 2020 to lower in Interest Rate by 25 basis points which meant that the PLR dropped from 10.00% to 9.75%. The next meeting date in scheduled for 17 to 19 March 2020.

IR 2020 4

The lower the PLR the less you pay on your bond, car finance etc, unless your rate is fixed on a fixed percentage with the financial institution. Lowering the Interest Rate is always seen as a positive move for the property market as this will benefit both Buyers and Sellers. Buyers will have a slightly reduced bond repayment which will affect their affordability profile. At the same price, Sellers will have more buyers who can afford their properties due to the reduced rate, etc etc. The difference in repayment of an average bond amount is very small, but this changes as the bond amount gets higher.

Example of bond repayments:

  1. R 1 200 000 bond on a house at Prime (9.75%) over 20 years will cost you R 11 382.20pm as a repayment. The same bond at 10.00% over 20 years would have cost R 11 580.26pm, a saving of R 198.06pm.
  2. R 5 000 000 bond on a house at Prime (9.75%) over 20 years will cost you R 47 425.84 as a repayment. The same bond at 10.00% over 20 years would have cost R 48 251.08, a saving of R 825.24pm

The attached PLR Graph shows the rate changes since June 1998, going up to 25.5% in August 1998 coming down sharply during the next 14 years with some spikes to 8.50% in July 2012. The last 10 years have been constant between 10.50% and 8.50%.

Prime Rate

The biggest benefit to the MPC lowering the rate is that it creates a positive market sentiment which means that buyers and investors are happy to invest in property. The most important factor in the current market is still PRICE. We believe, as there are quite a lot of stock available that we are still in a Buyer’s Market and Sellers need to price correctly in order to get Buyers interested. “Over Pricing” is very negative as many over-priced properties never sell.

The time for making a killing on your property isn’t now. But if you are prepared to sell at a MARKET RELATED price and your property is priced accordingly, you will. Buyers will always negotiate but within reason if your price right.

2020 Have kicked off with a BANG and we hope that you will have great year. Looking to sell? Let us know, we would love to sell your property.

Juanita Steyn – 083 604 1231
Marnus Steyn – 072 264 7806

For all out stock, show-days, listings and news please go to www.steynrealty.co.za

Stock – Some of our latest listings …

We focus predominantly on property sales and rentals in areas from Sterkfontein / Pinehaven side, along Hendrik Potgieter towards Clearwater Mall and Wilgeheuwel Hospital.

we can help 6.jpg

what we do …. @steynrealty

We have recently sold some of our stock and we urgently need new rental and sales stock for our buyers. Here are some of our current stock:

For Sale:

  1. Windsor West – R 690 000 – CLICK HERE
  2. Wilgeheuwel – R 899 000 – CLICK HERE
  3. Wilgeheuwel – R 935 000 – CLICK HERE
  4. Wilgeheuwel – R 950 000 – CLICK HERE
  5. Wilgeheuwel – R 1 125 000 – CLICK HERE
  6. Allen’s Nek – R 1 500 000 – CLICK HERE
  7. Little Falls – R 1 599 000 – CLICK HERE – House
  8. Wilgeheuwel – R 1 645 000 – CLICK HERE – House
  9. Honeyhill – R 1 700 000 – CLICK HERE – House
  10. Ruimsig – Smallholding – R 4 650 000 – CLICK HERE

To Let:

Our rentals are done through the TPN Rentbook system and all our applications are subject to a full credit approval process, employment verification and affordability screening. All of our properties are currently occupied but we get new stock in on a monthly basis. If you are not happy with way your rental portfolio is managed, we can also take it over.

Here is one 3 bedroom and one 2 bedroom unit we have available from 1 May …

  1. Wilgeheuwel – R 5500pm – CLICK HERE
  2. Wilgeheuwel – R 9 250pm – CLICK HERE

For more details on any of our services, please call, whatsapp, sms, email, tweet, facebook message …. we will get back to you.

Hope you have a great weekend.

M&J  …… http://www.steynrealty.co.za …… @steynrealty

Welcome to 2017

Welcome to 2017

…. not sure about you but 2016 was not a particularly good year for the Real Estate industry in SA. We saw the Prime Lending Rate go from 9.75% to 10.5% in the first half of the year. This, together with a couple of very negative and concerning economical and political movements put a bit of a damper on the market with most agents I spoke to reporting a drop in sales for the year.

Enough of 2016 and enough negativity over that market, the macroeconomical situation of the country and the dreaded word ….. “Politics” … blah blah blah … we have work to do and properties to market and sell.

2017 is here and we are going to “hook it” …. we are going to “hook it real good”. Stock in the Real Estate market is and always will be king! There are buyers for well priced properties. Although there are many factors that play a role like area (location), condition and specifications ….. “PRICE” will be the determining factor. If you price right, you will sell.

STEYN REALTY is serious about delivering an exceptional service to out clients being Property SELLERS, BUYERS, LANDLORDS & TENANTS. We have the experience, knowledge, marketing expertise, professional attitude and the drive to assist our clients with any Real Estate related query or assistance they might have. Where we can’t assist we will try to point you in the right direction. We have a list of professional and capable bond originators, attorneys, electricians, plumbers etc who we refer to our clients on a regular basis.

Buying or Selling Property is serious business and you need to team up with an Estate Agency who is just as serious about what they do. STEYN REALTY would love to assist you, no matter how big or small your property …. we do it all. We can also manage your rental portfolio, find, screen and place tenants on an ongoing basis.

If you are looking to Buy, Sell or Let-Out a property anywhere in the Roodepoort / Krugersdorp area or you know of someone who is struggling to sell please give us a call.

Marnus Steyn / 072 264 7806 / marnus@steynrealty.co.za / http://www.steynrealty.co.za
Juanita Steyn / 083 604 1231 / juanita@steynrealty.co.za / http://www.steynrealty.co.za

 

 

CALL US NOW

Seller Information

CALL US NOW

SELL THROUGH STEYN REALTY

I recently posted this article on our website in an attempt to notify sellers and future property sellers as to the potential pitfalls / costs when selling.

Just in the case of purchasers who need to do their homework before buying, making sure they are credit worthy and what they can afford, Sellers also need to do their homework ….

While touching on a couple of other issues, the article aims to outline most of the potential costs that Sellers may be responsible for during the sales and registration (transfer) processes. It covers the following:

  1. Avoiding Penalty Interest
  2. Bond Cancellation Costs
  3. Compliance Certificates
  4. General Condition of the Property and
  5. Nomination of the Transferring Attorney Firm.

You can read the article by clicking on the link below.

CLICK HERE

www.steynrealty.co.za (2).jpg

For any sales or rental related queries or to get your property listed in the Roodepoort, Ruimsig, Wilgeheuwel, Little Falls, Constantia Kloof and surrounds …. please contact!

Marnus Steyn – 0722647806 / marnus@steynrealty.co.za

Juanita Steyn – 0836041231 / juanita@steynrealty.co.za

http://www.steynrealty.co.za

 

Where is TIME going …?

August 2016 …. 5 months into our own business and more than 11 years in the Real Estate Industry and here we are …. still going “strong”.

PROPERTY

During the last 5 months we have done a fair amount of transactions ranging from R 2 000 000 to R 500 000 but we need more, much more. We pride ourselves on being pro-active when it comes to marketing and advertising of our stock, technology and the quality of our service, feedback, knowledge and professionalism.

Buying or Selling property is a massive decision and we take it very seriously. We have the necessary knowledge and experience in selling residential homes / clusters as well as sectional title townhouses and apartments to make sure that our clients are in good hands and get the right advice. We also offer rental procurement and management services where we offer a complete service through the TPN Rentbook and TPN Credit Bureau systems.

We get enquiries for sales and rental stock on a daily basis and we need more stock to show our buyers and tenants.

If you are at all looking to SELL or LET OUT your property, please give us a call or an email so we can assist. We cover quite a large area from Pinehaven in the West all the way along Hendrik Potgieter up to the Wilgeheuwel Hospital area in Radiokop. We are also looking for properties in Helderkruin, Kloofendal, Constantia Kloof and Weltevreden Park.

We can be contacted as follows:

Marnus: 072 264 7806 / marnus@steynrealty.co.za
Juanita: 083 604 1231 / juanita@steynrealty.co.za
Our website is: http://www.steynrealty.co.za
We are also quite busy on social media where you are welcome to follow our tips / hints / latest stock and industry related news updates and info ….

For our Facebook page ……. Click here
For our Twitter feed ……. Click Here
You can even follow us on Instagram ….. @steynrealty

We would also love to hear your views and thoughts on the SA Real Estate industry so please interact and give us you opinion.

\WE CAN HELP

 

Time to Blog

So, I haven’t blogged about our new agency yet …… Steyn Realty.

We are happy to report that the wheels are off the ground and we are flying. We will be assisting buyers, sellers, landlords, tenants with real estate related matters, listings, advertising, marketing, selling, letting and managing in the following areas:

From Pinehaven to Radiokop including Featherbrooke, Amorosa, Ruimsig, Tres Jolie, Poortview, Honingklip, Sterkfontein, Helderkruin, Kloofendal, Weltevreden Park, Little Falls, Wilgeheuwel, Strubensvallei, Honeydew Manor, Honeydew Ridge, Allen’s Nek and Constantia to mention a few.

Have a look at our new website at http://www.steynrealty.co.za and give us call so we can assist you.

What Sellers need to know.

So you want to sell your property, could be the house you stay in now or maybe another that you have bought some time ago for investment etc. The first thing you do as the seller is to think about PRICE. What can I / we sell this for?

With all the information available to buyers and sellers these days it is quite possible for sellers to take all of this information into consideration to get to an amount. What sellers need to know is that a lot of the information floating around on the internet and in property publications and booklets are or could be misleading. Take the property publications and ads on the internet sites for instance. Many of the properties advertised on these platforms are over-priced, have been on the market for a long time and just because they are in the same complex, estate, area or street as your property, doesn’t mean that you can price your property accordingly.

Although it gives us an indication, it is a known fact that over-priced properties take a very long time to sell, they become stale and then eventually sell for a lot less if they sell at all. It also doesn’t help talking to sellers in the area as many of them won’t tell you if their property sold for much less than the asking price. To get to the accurate selling price for your property the following needs to be taken into account:

1. Recent Sales: Recent selling prices of similar properties in the complex, estate or area. This is easier in sectional title complexes and estates than in normal residential areas unless the agent knows the properties that have sold and he/she can can also compare specific specifications.

2. Buyers Needs: Experienced agents know what buyers are looking for. Sellers need an independent view on this from an agent that is not emotionally attached to the property. Everything from the layout of the property to the specific finishes, storage space, lighting, garden size and privacy could be issues that are very different from one buyer to the next.

3. Defects, Declaration and Costs: Defects and the general condition of the property is a very important factor. Neat and well maintained properties sell quicker and at better prices …… that’s an industry standard unless you are buying a “fixer-upper” when a whole new set of rules will apply. All possible defects and the general condition of the property has to be documented and declared to the agent so that the buyer can be made aware of the situation. Buyers need to know what they are buying and they will be looking to the agent to declare this. All costs associated with the property need to be declared and documented such as rates and taxes, levies, additional security and maintenance levies etc.

4. Availability: Availability for viewing is sometimes a big problem. Especially in properties where there are tenants that are scared that the property will be sold. Agents will need access to view the property. Most buyers view on weekends and after hours and if that doesn’t suit the seller, well then you might just as well take your property off the market.

5. The Market: We are still in a Sellers Market which means that, taking all the above into consideration, sellers should be able to get slightly higher or at least close to asking price for their properties, if they are priced correctly. With interest rates and stock being low, this is a good time to sell. Buyers also get the benefit of low rates but unfortunately supply is a problem if you don’t find what you are looking for.

6. Commission: Sellers need to account for commission of +/- 5% to 7% of commission to be paid to the mandated agent or the agent who introduced the property to the buyer. This needs to be negotiated and agreed on and documented before the agent starts to market the property.

Determining the market related price of a property to secure a successful sale at the highest possible price with the best possible conditions is serious business and should be left to a property professional. For property sales on the Westrand, Krugersdorp and Roodepoort, contact me on 072 264 7806 / marnus@realpro4u.co.za