The un­ex­pected of­fer

George Herald - Private Property - - Property News -

While you may not have in­tended to place your home on the mar­ket, what do you do if you re­ceive an un­ex­pected of­fer on your home? In ar­eas where de­mand out­weighs the cur­rent sup­ply of homes avail­able to buy­ers, it is not un­heard of to have buy­ers make of­fers on homes that aren't on the mar­ket, says Adrian Goslett, re­gional di­rec­tor and CEO of RE/MAX of South­ern Africa.

"There are ar­eas in the coun­try, such as the West­ern Cape, that con­tinue to see an in­flux of buy­ers look­ing for prop­erty. How­ever, the in­ven­tory of homes that are cur­rently on the mar­ket do not meet the de­mand and often buy­ers have a spe­cific idea of the home they want. If they don't find what they are look­ing for among what is avail­able, we could see more and more buy­ers at­tempt­ing to pur­chase homes that are not on the mar­ket," says Goslett. "While pre­dom­i­nately seen in the up­per end of the mar­ket, un­ex­pected of­fers on low­er­priced prop­er­ties have be­come more pop­u­lar as sup­ply in some ar­eas be­comes re­stricted."

If you have not con­sid­ered sell­ing your home and you re­ceive an un­ex­pected of­fer, it may seem like a sim­ple mat­ter of say­ing no. How­ever, given the na­ture of this kind of of­fer, it is more than likely go­ing to be a price that may ex­ceed the cur­rent mar­ket value and could be worth con­sid­er­ing.

Goslett notes that, should you find your­self in this sit­u­a­tion, you should con­sider a few el­e­ments be­fore mak­ing their de­ci­sion:

Seek pro­fes­sional ad­vice

If you re­ceive an un­ex­pected of­fer to pur­chase, it is best to con­sult with ei­ther an at­tor­ney with real es­tate ex­pe­ri­ence or a rep­utable real es­tate agent work­ing within your area. Con­sult­ing with a pro­fes­sional will pro­vide you with guid­ance re­gard­ing the cor­rect pro­ce­dure and process to fol­low.

Get a com­par­a­tive mar­ket anal­y­sis

An­other rea­son to con­sult with a real es­tate agent is that it is im­por­tant to ob­tain in­for­ma­tion and anal­yse cur­rent trends and val­ues in your par­tic­u­lar area. An es­tate agent can be help­ful in this re­gard as they will be able to pro­vide sales fig­ures and a com­par­a­tive mar­ket anal­y­sis of the area. This will pro­vide an es­ti­mate of what the home is worth in the cur­rent mar­ket and give you an in­di­ca­tion of how fair and at­trac­tive the of­fer is.

What are the fi­nan­cial im­pli­ca­tions?

Per­haps it would be a good time to re­view your fi­nan­cial sit­u­a­tion to give you a clear in­di­ca­tion if the deal will ben­e­fit you. Look into as­pects such as whether the of­fer will cover the ex­ist­ing bond and whether there will be enough for other ex­penses. There might be early can­cel­la­tion fees on the bond or cap­i­tal gains tax to con­sider. Other as­pects would in­clude look­ing at the af­ford­abil­ity of buy­ing an­other prop­erty and new bond re­pay­ments on per­haps a higher amount. The rene­go­ti­a­tion of any con­tracts where the cur­rent prop­erty serves as a surety will also have to be con­sid­ered.

Is the of­fer made sub­ject to any con­di­tions?

If the buyer has made the of­fer sub­ject to any con­di­tions, these con­di­tions will ob­vi­ously have to be met be­fore the deal can pro­ceed to con­clu­sion. The buyer's in­ten­tion for the prop­erty will pro­vide you with an in­di­ca­tion of what con­di­tions will need to be met. For ex­am­ple, if the buyer in­tends to use the res­i­dence for busi­ness pur­poses, the of­fer will more than likely be sub­ject to the ap­pli­ca­tion for busi­ness rights be­ing granted. Know­ing what con­di­tions the of­fer is sub­ject to will also give you an in­di­ca­tion of how long you have to make your de­ci­sion.

What are your fu­ture plans?

Your life-stage and fu­ture plans will need to be con­sid­ered. If you are liv­ing in a starter home and want to start a fam­ily, an of­fer to pur­chase on your cur­rent home might give you the op­por­tu­nity to buy a prop­erty that bet­ter suits your de­vel­op­ing needs. If you al­ready have a fam­ily that is set­tled in a house that meets your needs and you en­joy the area in which you live, the de­ci­sion may be a lot harder to make.

"If you re­ceive an un­ex­pected of­fer, the de­ci­sion to sell or not is en­tirely yours.

Only you can ul­ti­mately de­cide whether the of­fer is worth your con­sid­er­a­tion or not. The de­ci­sion needs to be the right one for you and should be in line with your fu­ture as­pi­ra­tions,"

Goslett con­cludes.

Photo: www.bcfic.org

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