As one of the most important investments you’ll make, it’s no surprise that buying a home is an extensive process. But while it may be scary at first, that doesn’t mean you’re wandering into uncharted territory.
The road is well signposted and there are expert advisors who can help you along the way. If you’re not sure where to start, we’ve separated information on how to buy a house in South Africa and what important decisions need to be made.
7 steps to buying a house in South Africa
We separate 7 necessary steps when buying a house in South Africa. This will generate important results when you purchase a property, avoiding problems in the future:
Step 1 – Make sure you can afford it
Before starting your home search, you should have a very clear idea of what financing is available for you to negotiate.
A good starting point would be to use a title accessibility tool such as Ooba’s Title Indicator, which is a free online tool. This will give you your credit score, a summary of your affordability, and a realistic indication of your price cap.
Step 2 – Assess your credit record
As far as your bank is concerned, your credit score tells your bank if your past debt service behavior puts you at risk. The credit bureau will provide your bank with a three-digit number between 0 and 999 through various calculations based on your transaction records. Of course, the higher the better, a high credit score is also one of the financial assets. Valuable individuals you can have for buying a house in South Africa.
Step 3 – Find a realtor
While real estate agents are often thought of as working only for sellers, they are also a huge asset to homebuyers. Find a real estate agent with whom you can develop a good working relationship. Your knowledge of the real estate market and your ability to handle paperwork and deal with sellers on your behalf will ease the process that buying a house in South Africa.
Step 4 – Find your ideal home
Now, the part that people enjoy the most in the home buying process is finding a property. Once you have a clear idea of what you want, you can start scheduling visits during the week and coordinating your views to ensure they happen in a small window of time.
Step 5 – Sign the Offer To Purchase
Once you’ve found your dream home and all your finances are in order, you’re ready to sign an offer to buy. This is an agreement between you and the seller that sets out the terms and conditions for the sale of the property.
Step 6 – Arrange a Home Inspection An offer to purchase must include a requirement for a home inspection. This is your chance to detect potential defects in the property and it is important to understand your rights in this matter.
Sellers are responsible for all latent defects on their property for three years after the defects are discovered.
The seller will also receive a copy of the report, and it is up to you to request that necessary repairs be made.
Step 7 – Apply for a Home Loan Once you and the seller have reached an agreement, the next step is to obtain a loan to finance your purchase. Homes are a big investment, so banks have a system in place to help people buy homes within their affordability without having to file for bankruptcy after the fact.