Don’t let a relative keep you on a string

Home owners who decide to sell often get expressions of interest from friends or family members, but they shouldn’t let these distract them from their marketing plans.

“In our experience,” says Gerhard Kotzé, MD of the RealNet estate agency group, “it is only very seldom that a relative or friend will follow up and become a genuine buyer. And if they do, the personal relationship can make it very awkward for the seller to negotiate price with them or agree on other terms of the sale.

“On the other hand, most estate agents will be reluctant to start marketing a property where relatives or friends of the seller are excluded from their mandate (and thus from a commission-generating sale).

“So what we suggest is that if your cousin says he would be keen to buy your home or your friend says her sister might be interested, it is best to respond positively right away by being definite about your asking price and giving them a specific period – say two weeks – in which to let you know if they are at all serious about making an offer, and whether they have even made a start on applying for a home loan.”

If they don’t meet this deadline, he says, you can be pretty sure they were just daydreaming, and that you should go ahead and give your estate agent an unencumbered mandate to market your property and find you a real buyer.

“Meanwhile from the buyer’s point of view, it is good to know when there are any friends or family members of the seller who have expressed interest in the property, because that could put you at a disadvantage for financial as well as sentimental reasons,” says Kotzé .

“The seller who accepts an offer of R1m from you and has to pay an agent’s commission of 7% including VAT, for example, is only going to net R930 000 on the sale. So if there’s a relative or friend who is bypassing the agent and ‘buying direct’, it will be that much easier for them to match or better your offer.”

For more stories like this, Get Estate Life Magazine for free

Latest…

General, Lifestyle

Although many prospective buyers test the market online these days, most want to physically visit and experience a property before making one of the biggest investment decisions of their lives. This means that show houses are just as important as ever, says Tyson Properties CEO,...

Read More
General, Lifestyle

Purchasing a property from a deceased estate is no ordinary property transaction. While there might be a great opportunity to buy a home at an attractive price, it’s essential to understand the complexities involved, including the possibility of prolonged waiting periods, says Andrea Tucker, Director...

Read More
General, Lifestyle

Purchasing a home is a significant financial commitment that requires careful planning and long-term dedication. When taking out a bond or mortgage, potential homeowners agree to repay the borrowed amount with interest over a specific period. Managing bond repayments is crucial for maintaining a good...

Read More
General, Lifestyle

Summertime is synonymous with outdoor gatherings, garden parties and the national South African pastime, the ubiquitous braai and creating the ultimate backyard space for these occasions not only enhances your enjoyment of your home, but also its value. “We’re blessed with the perfect climate for outdoor...

Read More
General, Lifestyle

While the demand for residential rentals in South Africa is rising, so is the number of defaulting tenants. The depressed economy, interest rate hikes, and the pandemic’s lingering impact on jobs and income, are contributing to an increasing number of South Africans failing to pay...

Read More
General, Lifestyle

Load shedding continues to significantly reshape the attitudes of homeowners, and the expectations of buyers and sellers, in the South African property market. This is according to Renier Kriek, Managing Director at Sentinel Homes. “Enjoying one’s home to the greatest extent possible during blackouts and...

Read More
No Comments

Post a Comment