When buying a home, there are a few common pitfalls to avoid, whether you’re a first-time or seasoned buyer. Key among these is failing to establish a clear budget and purchase limit. Emotions can easily sway decisions, so it’s crucial to understand what you can realistically afford and to secure pre-approval for a bond before the house hunting begins.
Apart from setting a budget, there are a few less obvious mistakes that homebuyers often overlook. We’ll unpack those in greater detail below…
1. View the house (& the neighbourhood) in person
With both AI and the world of virtual tours, it’s tempting to make a snap decision based on what you see online. But, where possible, it is important to visit the house in person to make sure it lives up to its online profile. With the rise of deepfakes, fake identities and online fraud, you need to check that the property is as picture-perfect as the online listing claims. More to the point, that what you see is actually the dream home you’ve fallen in love with. Catfishing isn’t restricted to the world of online dating: fake property listings often use cloned photographs, and the fraudster may even drive you past the property. A legitimate real estate agent will always take you into the property so do not be fooled by anyone who does not allow you access to the home.
It is also worth visiting the neighbourhood to see if it aligns with your lifestyle preferences. Visit the area during the daytime as well as in the evening to see if anything changes. Apart from the in-person suburb tour, it can also be helpful to ask your RE/MAX agent to draw a report for the area to see how prices have appreciated over time. This will give you a sense of the potential of your investment in the area. Also be sure to ask if there are any known development plans in the pipeline that might affect the resale value of the area.
2. Always read the small print
In the heat of the moment, it’s very easy to ignore the fine print and the seemingly endless amount of pages that make up the offer to purchase (OTP). Buyers do this at their peril. Make sure that you pay attention to the property defects disclosure form. This is now mandatory, and buyers have the right to request a home inspection but this would be at their own expense. If you want to have any resulting issues addressed, then make sure it is spelt out in the OTP as one of the conditions of the sale.
Other points to pay close attention to include:
- If you do conduct a home inspection, use a qualified home inspector and/or registered plumber or electrician to do this work.
- Read through everything in the OTP before you sign, being sure to ask for clarity if you don’t understand what a clause means.
- Put everything in writing: include the date of occupation and/or occupational rent, what fixtures the sellers will be taking, and what they will be leaving behind - try to be as thorough as possible to avoid misunderstandings later on.
3. Remember to budget for all upfront costs
Many buyers don’t realise this, but the purchase price of your dream home is just one element of the total costs of buying a new home. There is a slew of other upfront costs that you must factor in, including:
A deposit
Buyers are encouraged to put down a deposit on the property, especially if they’re taking a bond for the first time. This is usually 10 – 20% of the purchase price, but can actually be any amount that your have available. Putting down a deposit both demonstrates your level of commitment to the transaction and will ultimately be offset against the total that you owe. Remember that the deposit is paid into the transferring attorney’s trust account soon after the OTP is signed, where it will earn interest which must accrue to you once the transfer has been concluded.
Bond initiation fees
If you are taking out a bond, initiation fees will be payable. Depending on the financial institution, these are added to the total bond amount. It is better to avoid this by paying upfront if you can because adding this amount to your bond will both increase your total debt and therefore also the amount of interest you will have to pay over the period of the loan term.
Taxes and legal fees
Every property transaction in South Africa is subject to tax or transfer duty. These transfer costs, as well as the Deeds Office fee, are all payable upfront, as are lawyers’ fees for handling the transactions. These include fees to the attorneys who attend to the bond and any bond cancellations as well as the transferring attorneys.
Service connection fees
Depending on the municipality, you may have to pay a connection fee or a deposit on your utilities (water and electricity). If you’re moving from one Eskom supply area to another, you may also have to pay a transfer fee.
The move and beyond
In the excitement of a new home, it’s easy to forget about the costs associated with the move itself, bearing in mind that goedkoop is duurkoop and that the DIY option is not always the simplest. Ask around to find out how much it’ll cost to hire a furniture removal company and build this into your budget.
Once you’ve moved into your dream home, you’ll inevitably have to spend money on cosmetic changes to make the space feel like your own, like paint, blinds and shelves. It’s best to be prepared and have a secret stash set aside to tackle these projects.
A last word
Choosing a trustworthy, registered, and professional estate agent can be one of the smartest moves you make as a homebuyer. Beyond having your best interests at heart, they bring in-depth knowledge of both the market and the neighborhood you're considering. They can connect you with key professionals, like home inspectors, and often have early access to properties before they even hit the market.
But that’s not all — an experienced estate agent will handle negotiations, guide you through the paperwork, and support you at every step of the buying process, making the entire experience smoother and less stressful.
Contact a RE/MAX agent to help you find your dream home.
Have more unanswered questions? Here are some related questions – and answers – that might help…
How long after buying a house can you complain in South Africa?
In South Africa, the time frame for lodging complaints about property defects after purchasing a home largely depends on the nature of the defect and whether it was disclosed before the sale. If a seller knowingly concealed major latent defects, you may have grounds for action.
Can I hold a seller liable for defects in a property I bought?
Yes, for a period of three years, if it can be proved that the seller knew about the defect when they sold the property to you. If, however, the defect is listed in the mandatory disclosure form, you cannot hold the seller liable.
What benefits do first-time home buyers get in South Africa?
First-time homeowners in South Africa qualify for a subsidy in terms of the Finance Linked Individual Subsidy Program (FLISP) which is granted on a sliding scale and based on a means test.
