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Selecting the Right OTP

It’s every seller’s dream to receive multiple offers on their property, but deciding between offers can be challenging if the decision is not a well-informed one. Here’s how to make a decision that’s right for you!

Begin the decision-making process by carefully reading through every Offer to Purchase and weighing the pros and cons of each. It’s advisable that this is done with a reputable real estate agent with comprehensive sales experience who can guide you through the transaction process and assist in selecting the best possible offer.

An estate agent with the seller’s best interests at heart is worth their weight in gold!

Sellers often select the offer with the highest rand value; however, other factors affect the transaction process in varying ways. For instance, a sale subject to the purchaser first selling their own home could result in delays in the transaction process, regardless of how high the offering price is. The size of the deposit, and whether the purchaser intends to pay cash or apply for bond finance are other significant factors affecting a seller’s decision. Most deposits will range between 10% and 30% of the purchase price; the higher the deposit the more likely the bank is to grant finance. An offer where the buyer is in a financial position to make a large deposit usually has more weight than that of a buyer offering a higher price but needing a 100% bond granted in order to proceed.

In summary;

  • Read through each offer and weigh up the benefits of each, paying special attention to additional clauses, annexures and additional features and fixtures.
  • Where necessary request that your estate agent or a legal advisor explain any unclear clauses in the contract.
  • Have your estate agent advise on what he/she thinks is the best possible deal for you, taking into consideration your reasons for selling. (Investment purposes, urgent sale etc)

 

Lastly, make certain that all documentation corresponding to the sales property is accurate and up-to-date to avoid transfer delays. This includes valid copies of the buyer and seller’s FICA documentation, a fully complete and signed Offer to Purchase, Mandate, Electrical Compliance Certificate and all other relevant documentation.

 

Select the deal most likely to go through at the price you’re willing to accept!