Ask questions, be thorough, be cheeky, say top property consultants

SLOW house-price growth, coupled with the over-supply of properties on the market, means first-time buyers are in a good position to snap up a brilliant deal and climb on the property ladder.

Mpho Ramatong, housing schemes channel head at FNB home finance division, says while overall purchasing activity is down, the proportion of first-time buyers has “trended up” in recent months, reaching an estimated 22.7% in the first quarter of this year.

But before you sign on the dotted line, ensure your first property purchase goes smoothly.

This advice from those in the know: Ask to see your agent’s certificate: Some agents trade without a licence so that means there is no protection for you as a client if you choose to work with them. Susan Watts, broker/ manager at Re/Max Living City Bowl, hopes the Property Practitioners Bill (which assists in ensuring people who are not properly licensed can’t trade) will put a stop to that. (See below).

“The agent has to hold a certificate for the current year,” she says. “Clients can ask to see a certificate, the same as a traffic officer can ask for a driver’s licence.”

Get as much information as possible: If you’re thinking of a sectional title property, have a fundamental understanding of the running behind the scheme. “Every agent should be able to provide the latest financials, minutes from the last annual general meeting and the conduct rules for the building,” says Sea Point market specialist, Lyonelle Venter of Jawitz.

“Otherwise you can get caught out in special levies. For example, if you read the AGM minutes you might see there’s a problem with the lift.”

Don’t buy a new car: “Set up a good record with the bank by not overextending yourself,’ says Jill Lloyd, area specialist in Rondebosch and Claremont for Lew Geffen Sotheby’s International Realty.

“Someone came in a little while ago and said ‘I’m sure we’re good for credit because we’ve just bought a new car’. This is like the kiss of death for someone buying a house. The credit for buying a car is very much easier than buying a house. They’ve borrowed the money for a car, which takes money away from their available income.”

Be cheeky: Don’t be shy to put in a low offer, says Watts. “If the property is on for R3 million and you fall in love, but can only afford R2m, offer R2m.

“Don’t be worried that you’re going to offend the seller. It’s a business decision. The seller just says no if they don’t like the offer. If you don’t get it accepted, move on to the next property.” - Abbie Wolf