How to Buy House in South Africa [Step-by-Step Guide]

step_by_step_guide_to_buy_home_in_south _africa

Buying a home is a huge financial commitment as well as an emotional investment. Whether you are a first-time buyer or an experienced buyer, the process can be very stressful and time-consuming. We have prepared the road map to make your home buying experience smooth and less frustrating.

1. Analyze how much you can afford:

Before buying a house, you need to consider the following points:

Check the Savings: Before buying a home, make sure that you have saved enough for the emergency expenses. It is recommended to look for a home that does not cost you more than 3-5 times the annual income.

Analyze your spending: It is important to review your spending. The calculation will let you know about the amount you can allocate to the mortgage. You need to check both, ongoing expense and purchase.

Check credit score: To qualify for a home loan, you need to have a good credit score. Higher will be the credit score, lower will be the interest.

Here’s the list of a site where you can check the credit score for free:

2. Find the real estate agent:

Sometimes, buyers choose to buy property on their own. But it is advisable to look for a good real estate agent in your area. Real estate agent will ensure that you find the right house at an appropriate price and will help you go through all legal processes in buying a home.

It is very important that you choose the right real estate agent. Before selecting the agent, check the following things:

  • Check the history of your agent.
  • Check the license of your agent.
  • Find out that for whom your agent is working.

Once you have selected the appropriate real estate agent, he will ensure that your home buying experience is less stressful.

Visit the site, to choose the best estate agent from your nearby area:Find an Estate Agent on Property24, South Africa’s leading Property Website

3. Search you home

After you are aware about what you can afford, narrow down your choice by

Considering the following points:

  • Find the type of house which is more suitable to you, like flat or duplex.
  • List out the features you want in your house like number of bedrooms, parking facilities, various appliances in home.
  • Neighborhood: What kind of area you want? What amenities do you want near your surroundings?

Begin with viewing the houses in the area you are interested in. List out the homes in your price range. Compare the price of houses in that area. It is better to see more houses before making any offer. Take as much time as you want to find your dream home. After selecting a house, sit with your agent and ask him to negotiate the best offer.

Visit the site to find the house for sale in your required area:

4. Home Inspection:

Generally, the final purchase offer depends on the home inspection. In home viewing, you can notice smaller damages. But, is there any significant structural damage that can only be revealed through home inspection? Generally, your agent will help you in conducting the inspection of the house.

After home inspection, you have a chance to renegotiate your offer .If there is any major defect, then you can withdraw the offer without any penalty.

(can prepare blog on checklist for home inspection)

5. Getting a mortgage and home appraisal:

Before making any legal agreement, it is important to speak to your lender. Your lender will show you various loan programs. You need to choose the mortgage, according to your own priorities. This will give you an idea about how much you will borrow and how much you have to pay monthly. 

Your lender will help you in doing the title search to make sure that only the seller has claim over the property. Also, lenders will arrange a third party to have an independent estimation of the property. This appraisal will make all the parties know that you are buying the house at a fair price. If you are a first-time buyer, visit Home Loan info for first time home buyers.

6. Closing the Deal:

After getting approval from the lender, it’s time to close the deal. Once you have arranged all your finances, you are ready to sign an agreement. . Closing the deal involves a lot of paperwork. The attorney will take charge of all documentations for the buyers to sign. As in South Africa, you need to pay the transfer duty, while buying a house. As the documents are signed by buyer and seller, the deal is closed.

Here are some tips before hiring an attorney general: tips on hiring an attorney or lawyer in South Africa

Once you have followed all the above steps, you are ready to move into your dream house.