In real estate, we have gotten used to a range of jargon like OTP or Offer to Purchase, also known as The Sale Agreement or the Agreement of Sale that you should read carefully.  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.  If you need assistance with understanding a clause on an OTP – click here to send us a WhatsApp.

We 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 than 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.  Click here to connect on WhatsApp.

OTP: What Are 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 Cornerstone Homes 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, a strong seasoned property professional will request information to support the finance pre-qualification before the viewing.
• An OTP Could Include ‘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 are how long your property has 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 “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 to.  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 1^st buyer be notified that a competing offer has been received that is (1) more than the original offer in terms of 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.  If you need some honest property advice, click here to send us a WhatsApp.
• Special conditions on an OTP – 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 Get Is Possibly Your Best Offer

Yes, and we are not just saying that as property professionals.  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:

1. 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.
2. 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).
3. 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 counteroffer you as the selle,r 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.

Do you need assistance or more information?  Click here to send us a WhatsApp.

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 With A Property Valuation and a Property Sale?

If it is time to get started or if it’s time to get a 2^nd opinion on your current listing, or or WhatsApp Sandy from Sell with Sandy on 083 550 1220.

Or, visit our website for more information.

Do You Want To Net More When You Sell, Read More…

We are all after the same thing.  We team up to win and that means help you sell your property for as much as possible in the current market.  To make the most of the current 10-year highs in Randburg and to make sure we can NET YOU MORE WHEN YOU SELL.  Click here to find out more.