The kinds of key considerations when navigating an OTP in a tough Randburg property market are really simple and apply to good markets that are booming and the current market we find ourselves in which is, frankly, not booming but yielding some pretty awesome sales results. The Randburg property market may be at a low point but the sales results are still brilliant and we are selling at brilliant prices, even for the tough market conditions.
I wanted to cover a few things that come up on an OTP. These are more important than ever. If the market delivers a buyer, through an enquiry then we need to do our level best to make sure we hold onto the buyer with both hands. Navigating an OTP in any market secures a Randburg property sale then a property transfer. Knowing what to expect on an OTP is key and this is essential to understanding the offer based on the merit that is included in the offer you will be presented with when your Randburg property sells.
Suspensive conditions
If you are wondering what the key considerations are on an offer to purchase or OTP, we will cover most of the important ones here. We call the conditions on an OTP, suspensive conditions and if you go according to the KW OTP here are the key considerations:
- On condition that the buyer qualifies for finance at the price the buyer is willing to pay for your property. Generally, a property practitioner will ensure that before bringing a buyer through to view a property the buyer qualifies for the price of the property that is listed. Often buyers will only start the process once they have viewed the property but in most cases, as strong seasoned property professional will request information to support the finance pre-qualification before the viewing.
- On condition that the buyer’s current home is sold. This is a critical consideration in the current market because it is taking so much longer to actually sell a property. Questions a seasoned property professional will ask is how long has your property been on the market? How many offers have you received? If the buyer does love your home and wants to put in an offer to buy your home but they still need to sell their home this is called an “on condition of the sale of a property”. Getting an offer that is “on condition of the sale of another property, is a good thing. This means that you have a price that you can hold on. It also means that as a seller you can continue marketing your property, but you may not accept another offer. Being fair and reasonable with timelines is also essential with this suspensive condition. If you do receive another offer, the process that must prevail is that the 1st buyer be notified that a competing offer has been received that is (1) more than the original offer in terms of a sales value, or (2) an offer that has no suspensive condition in terms of “on condition of the sale of another property”.
- Other suspensive conditions include “on condition that the buyer obtains finance from the bank. On condition of a registration, where the buyer’s property has been sold but not yet registered.
- Special conditions – means that if you are undertaking work currently or have plans to fix something like prior water damage, or damp or broken windows these become elements of the offer so a special condition. All special conditions are ALWAYS listed in writing on the OTP. There are a myriad of options that can be listed as a special condition, including the buyer making an offer on your property on condition that the property transfer is handled by their attorney. This is definitely one I consider very carefully because as the seller, you want to maintain control of your property transfer, ALWAYS.
Is it true that the 1st offer you receive is possibly my best offer
Yes, and I am not just saying that as a property professional. When you get to this point as a seller you have 3 options:
When faced with an offer being presented, you, the seller always has 3 options:
- Accept the offer – If you receive an offer within 10% – 20% of your asking price this is currently considered a good offer, especially if you have priced with a little ‘fat’ in the price.
- Decline the offer – but getting an offer is a good sign and generally we have an offer to work with which leads to number 3 (counter-offer).
- Counter-offer – a counter-offer means you are almost comfortable but there is one or two little niggles, the price and/or things the buyer may want to be fixed as part of their offer. Remember when it comes to a counter-offer you as the seller have options too. When it comes to a conversation between a buyer and your property professional it boils down to “what is your best price”. We try and get to the middle of the road.
Need more info on an OTP?
- Be sure to check out the meaning of the word or clause known as the Voetstoets clause on the OTP.
- Be sure to check out whether your OTP is binding or not?
- The process to sell a home – the role of the OTP.
Is it time to get started on your Randburg property sale?
If it is time to get started or if it’s time to get a 2nd opinion on your current listing, give Sandy from Sell with Sandy a ring on 083 550 1220. Or, visit my website for more information.