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I Issue: July 2004
I Editor: Berry Everitt I |
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Your Area Specialist:
Chas Everitt International
sales agents have all the latest market information
regarding local property values at their fingertips
– and are committed to the highest standards of
personal service when it comes to selling your home.
In addition, the Chas Everitt International property
group offers you, the homeowner, the best possible exposure
for your property in both national and international
markets. So if you are thinking of selling your home,
call your nearest Chas Everitt International office
today for the name of your local area specialist - or
visit www.chaseveritt.com
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Every month the Property
Signpost Newsletter will be issued to all our
subscribers, filled with real estate information to
help you make an informed decision, whether you are
buying or selling a property.
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Contents
1. Welcome By Publisher
2. How to buy a home in a hurry
3. Double-check
the mortgage clause
4. Three cheers for Barry
5. Make sure the cottage is
cost effective
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1.
Welcome By Publisher
Six years might sound like
a long time to wait for the World Soccer Cup in SA,
but seasoned international investors start scouting
for rental and recreational properties as soon as
the host country for a major world event is announced
- knowing that the sooner they buy, the better return
they are likely to make.
Smart sellers, on the other
hand, will already be looking for ways to attract
such investors - and we now have several initiatives
under way that will assist our clients to do just
that. For a start, there's our latest series of overseas
exhibitions.
Chas Everitt International will
showcase the cream of SA property at the Homes Overseas
exhibition at Earls Court in the UK during September,
and at the Second Homes fair in Utrecht, Holland as
well as the Sud Afrika Tage in Munich, Germany during
October. Our previous exhibitions at these shows have
drawn many hundreds of interested visitors and resulted
in scores of sales, and we have no doubt they will
be even more successful this year because of the increased
awareness of and interest in SA. Even better news
is that participation is free of charge to our clients.
To enquire about including your property, contact
a Chas Everitt International agent today.
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2.
How to buy a home in a hurry
If, as is often the case these days, your property
has sold more quickly than you anticipated, you will
need to guard against making an unsuitable or too
expensive purchase in your haste to find a new home.
Your first step should be to analyse your needs and
list the essential features the new home must have,
then prioritise the other desirable features in order
of importance.
It is, frankly, unlikely that you will find a home
that meets every one of your requirements at short
notice. This exercise will, however, enable you to
gauge a probable price range for your new home and
to take the next step, which is to line up the finance
for your purchase
. Ensure your credit record is clear and approach
a bank or mortgage originator with salary and employment
details as well as the details of your own sale and
the proceeds you expect to receive. Then, armed with
information about the size of loan for which you would
most likely qualify, you can begin your hunt. You
can immediately multiply your search resources by
contacting established estate agents operating in
areas you like and asking to view any listings they
have that come close to your list of requirements.
You can also ask these agents to review their expired
mandates.
Some of these homes may be off the market altogether,
but sometimes sellers have just decided to take a
break from marketing, especially over a holiday season
or during the winter months, and will be just as happy
as you are to conclude a sale. Agents may also be
prepared to let you view suitable new listings before
they go on show. Some sellers will be reluctant to
accept an offer before they have tested the market
with a showday or two, but others will be happy to
conclude a deal right away.
And finally, to reassure yourself that you are not
overpaying in your haste to get settled, you can always
ask the estate agent for the Comparative Market Analysis
that was used to decide a particular property's asking
price.
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3.
Double-check the mortgage clause
The mortgage clause in some Offer
to Purchase or Agreement of Sale documents can be confusing,
and home buyers and sellers must be sure when they sign
that they are not committing themselves to the transaction
under unacceptable conditions.
The mortgage clause usually stipulates
that the purchase agreement is subject to the buyer
being granted a home loan within a certain period. But
because different agencies use different sale documents,
the clause can be worded in different ways, and it may
contain provisions unforeseen by the buyer. The clause
may, for instance, state that a home loan will be regarded
as having been granted even if the approval is only
provisional.
It may also bind the buyer to the agreement
even if the loan approval includes conditions that are
unacceptable to him - such as the provision of additional
security or the procurement of additional life assurance.
To avoid such problems, buyers as well as sellers should
be sure to deal only with experienced and reputable
estate agents who will take the trouble to explain any
clause in their sale documentation that has financial
implications.
And because the mortgage clause is
so important, no buyer or seller should ever sign a
sales agreement in which this clause has been left blank.
Doing so could commit the buyer to the sale even if
he does not secure a loan. Alternatively, it could commit
the seller to the transaction without any cut-off date
for loan approval - and jeopardise any other sale opportunities
while he waits and waits for the buyer to obtain finance.
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4.
Three cheers for Barry
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Congratulations to Barry Davies,
CEO of Chas Everitt Franchises, who has been named
as a Property Professional "Young Lion" of 2004. The
Young Lion awards are made to rising stars within
the real estate industry by the Property Professional
Club's independent board of trustees, and were presented
this year during a gala event held at the Arabella
Hotel and Spa near Hermanus.
Barry's award was made in recognition
of the major role he has played in quickly growing
Chas Everitt International into one of the most prominent
and respected real estate organizations in SA. Formerly
the CEO of another national real estate company, he
was appointed as CEO and partner at Chas Everitt Franchises
in January 2003 - and immediately instituted a franchise
drive that has already yielded more than 35 offices
in five provinces.
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5. Keep Your Ears Open
While You Look
It has become increasingly
popular for homeowners with large stands to add a "granny
suite" on to their houses or to build a separate cottage
in the garden for guests, grown children, retired parents
or even paying tenants. And the existence of such a
suite or cottage, particularly if it has its own kitchen
and bathroom, can add considerable value to a house
when the time comes time to sell. But there are important
checks to be made before you call in the builder:
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Make
sure that local authority regulations allow a "second
dwelling" on your stand, and that your plans would
not infringe building line or servitude restrictions.
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Check
with a reputable local agent whether your proposed
addition would be cost effective. You might not
be able to recoup the cost of a large cottage attached
to a small two-bedroom home in a modest area.
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Consider
the design and size. A cottage that cramps the garden
or encroaches on the outdoor entertainment area
may even reduce the attractiveness - and saleability
- of the original home.
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Check
the access. Is there room for a separate entrance,
and what about parking for an additional vehicle?
And, finally, if you
intend to rent the cottage, you should check that it
would generate sufficient income to cover any additional
repayment on your home loan - remembering that rental
income is taxable.
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