Before you buy a pre-owned home, there are a few key questions you need to have answered that have nothing to do with the condition of the building.
The first of these, says RealNet MD Jan Davel, is why the owner is selling.
“And don’t let anyone tell you this is none of your business, because it is vital information that can help you save money and time.
“You need to know if the seller has been transferred, for example, or has already bought another home, because then he will most likely be keen to sell and ready to negotiate.
“Similarly, if the seller is financially ‘distressed’ and worried that the property might be repossessed, he will also be looking for a speedy sale and may be prepared to accept an offer that just covers the amount owing to the bank and the agent’s commission, rather than one for full market value.”
On the other hand, he says, if the owners have no sale deadline and are just testing the market, you may be better off looking at other homes.
“And if the home is being sold because of a divorce or perhaps a death in the family, the transaction could get bogged down in legalities”
In addition, says Davel, you should ask the following:
* Has the seller perhaps been driven to sell by noisy or troublesome neighbours, a high incidence of crime, or a development plan for the area that he or she doesn’t like?
* How did the seller arrive at the current asking price? Hopefully, he or she made use of a comparative market analysis (CMA) detailing the asking and selling prices of similar properties recently sold in the area and their listing times to pitch the asking price as close as possible to market value. If so, the agent handling the sale should be more than happy to provide you with a CMA for the area, too – and indeed you should grow wary if you encounter any resistance to doing so.
* How long ago did the seller purchase the property and how much – if anything – does he or she still owe on it? If there is a large differential between what is owed on a home loan (or what the seller paid 30 years ago) and the current market value of the property, and the seller thus stands to make a large profit, he or she may just be prepared to take a lower offer in return for a quick and hassle-free sale. - Saturday Star