Greenleaf Property Developers

The current uncertainty in the real estate market means that it's very common for homebuyers to make their offers to purchase contingent on the sale of their existing homes.

However, sellers who accept such offers need to be careful that these buyers are not overpricing the properties they have yet to sell, says Nationlink estate agency group chairman Dr Piet Botha.

One idea instead of rejecting a contingent offer outright, he says, is for the seller to write a counter offer stating that the buyers must list their existing property for a certain price or less. "And you should not put in the words 'market value' but rather get your agent to do a comparative market analysis and put in a specific price based on this.

"In addition, you should get the buyers to agree to drop this asking price every two weeks until their existing home attracts an offer and they can complete their purchase of your home. And remember, in real estate everything is negotiable, including the length of time you are prepared to let the contingency stand."

Botha says that in a buyer's market, sellers are often only too pleased to have any offer on their homes. "But you don't have to roll over and play dead, accepting any terms the buyers offer.

"It is true that buyers have more choice in such a market but once you have an offer in your hand, that means someone has chosen your home because it is the one that meets their needs – and because they like your price.

"That means that you can focus on the terms of the contract – one of which may be a contingency that is likely to cost you money. While you wait for the buyers to sell their existing home, you will have holding costs in the form of bond repayments, rates and taxes and service charges – not to mention the stress associated with the possibility that they may not sell their home and that your deal will fall through.

"So you owe it to yourself and your family to be firm as well as flexible, and negotiate to make the contingency work for you."

For more information contact Sonja Topper on 021 975 9316 or click here to visit the website.