Hello lovelies! I am typing this as I sit at our table in our new home! Alhamdulilah!
It has been a process and it has been a journey but, we finally have a place to call home (complete with a garden and amazing neighbours).
We have “settled in” so to speak… and by that I mean we have unpacked what we needed and shoved all the other boxes into the study – I just try not to look at it.
So this post is all about the cost of buying a house…
The total cost when buying a house (this is excluding any renovations and decor) consists of the purchasing price + deposit (a necessity with most banking institutions if you are buying a house through a bank) + transfer fees + bond fees and transfer duty (this is only applicable if the purchase price is more than R750 000.00).
This is the cost you see online under the wonderful words, “For Sale” – this is not necessarily the price you will be paying – but this is the price that the seller is asking for.
We learnt to a l w a y s negotiate – when we put in an offer (in all the houses we’ve looked at and not just this one) we’ve always gone with 20% – 25% less than the asking price. This can be a back and forth negotiation between you and the seller but hopefully you will come to an agreed upon amount (in this case we did – however the previous house we tried for didn’t want anything less than the asking price).
One thing from our experience was that our personal banks did not offer us the best options (so just because you bank with them – does not mean they will be loyal to you).
Once the agreement has been made with your chosen bank – they will send out an assessor to evaluate the property and based on the outcome your loan could be higher or lower than the initial offer.
When applying for a home loan – the bank could either give you a 100% bond or 90% bond and you will be required to pay the 10% deposit to the seller the % can vary, the bank will offer you various deposit amounts against the amount they are willing to loan).
Most home owners and agents will not accept a 100% bond as they see the deposit as being a guarantee when you sign those offer to purchase papers.
The deposit is paid to the transfer attorney and is not paid to the seller until registration.
This is calculated depending on the purchase price as well as the time of purchasing and is paid to the transfer attorneys.
Includes; Deeds office Fee, Deeds Office Search, Postages, Rates clearance and Electronic Certification.
Paid to the bond attorneys and includes registration, Deeds office fee, Postage and Deeds Office Search.
The agent, transfer attorneys as well as the bond attorneys and the bank were amazing in this process – they answered our (my) millions of questions, listened to our queries, kept us informed of every little step and have been so helpful in making this transition easy and such a joy!
The house is small but the love inside it is huge 🙂