Today, let’s cover whether you should buy a Randburg property first or sell a property first.
In the current market and according to the FNB Property Barometer, one of the finest research tools available freely on the web, FNB has confirmed it is taking 3+ months to sell a property. Some properties take longer due to how the higher interest rate has impacted certain segments. And to be clear this is the first-time homebuyer segment.
What happens when you buy your Randpark property first?
When you buy a property first, without listing or having a firm offer on the property you have fallen in love with, you need to put in what we call a suspensive clause you will need 2 suspensive clauses.
- 1st Suspensive Clause on the Offer to Purchase (OTP). To secure finance for another property most folks need to sell their current Randburg property first. Your debt-to-income ratio cannot sustain 2 bonds. So, in the current market putting your property on the market first is essential if you are to secure your next dream home. In the current market, some agents will not entertain this clause if you have plans to put in an offer because a property sale can and will take 3+ months to sell.
- But I plan to buy a Randburg property with Cash. That would be wonderful and support a growing trend in the market. But, to buy for cash, you still need to sell your current property. In the current market again, it is taking 3+ months to sell a property. Need a property valuation if you have plans to sell then buy, let me know. I work in the Randburg property area but I have top agents in KW who can and will assist you with superb service and great results.
- 2nd Suspensive Clause. I am buying my Randburg property on condition of the sale of my current property, no matter where it is. The first question the agent will ask you when start your offer is, have you listed your current property for sale. The second question the agent will ask you is if you have received any offers on your property. A suspensive clause is so much stronger when you have sold because then your offer on your dream home is on condition of a transfer which is also 3 months in the current market.
Timelines when you sell a Randburg property is 6+ months
To err on the safe side, in order to sell a house, you could work on at least 3+ months to sell a property. The transfer if your buyer on your current property buys for cash is 6 weeks. The transfer on a property sale where your buyer needs to apply for a mortgage bond is at least another 3 months from the time of your sale. So in total, you are looking at 6 months.
Would 6 months’ work for the seller of your next dream home?
When a property goes onto the market it is because a seller has plans to do something special in the next phase of their life. Reasons for selling could be to ensure a relocation. It could be to downsize for financial reasons. It could also be because of the death of a loved one. It could be for reasons of a divorce and oftentimes 6 months may just not work for many sellers. Also, an offer that holds or carries these suspensive conditions do leave you weak on price. If you are considering an offer way below the asking price but have the abovementioned suspensive clauses in place, your agent is in a stronger position to hold on price and secure a cleaner offer.
Need help to sell then buy a Randburg property?
Call or WhatsApp Sandy from Sell with Sandy 0n 083 550 1220. As a seasoned property professional, my advice especially in the current market is to sell or at least start marketing your property before you start looking for another dream home. Certainly, if you find your dream home make certain your current property is on the market and you have had a few viewings take place. Visit my website for more information. I would love to assist you.