Don't let a sudden defect derail your home purchase
Category RealADVICE
Buying a home is a strenuous journey, often involving many hours of scouring online listings, going to view and evaluate the properties you like best and then making a decision about which one will offer you the best combination of value and comfort.
Consequently, says Gerhard Kotzé, CEO of the RealNet property group, it can be devastating when unexpected defects suddenly surface after you've already made an offer to purchase, but before you've taken transfer of the property.
"And this can happen, even when the home seller and their property professional have been very careful in compiling the defect disclosure list that forms part of the agreement of sale. Sometimes there's a latent problem that no-one is aware of until it actually shows itself, especially in older homes.
"However, although this can feel like a real roadblock on the way to owning your dream home, it doesn't necessarily mean the end of the road for the deal, or an additional financial burden for the buyer."
Home sellers share a vested interest in achieving a smooth property transfer process, he notes, and in many cases will be open to negotiations for a price adjustment in the light of the new-found defect, or prepared to cover the cost of any repairs that are necessary.
"Most will realise that if the current buyers pull out of the deal, they will have to disclose the now-known defect to any future buyers and will thus probably achieve a lower sale price anyway.
"And most will definitely not relish the prospect of the legal action the buyers could consider taking if they come to believe the defect was deliberately concealed from them in order to secure a higher offer."
This is not to say, though, that either the buyer or the seller should take such an issue lightly, says Kotzé. Hidden complexities may surface during repairs, revealing a need for even more work. Therefore, buyers who decide to go ahead with a reduced price must be satisfied that these purchase savings will be sufficient to cover all that needs to be done.
"Indeed, the key to a really satisfactory outcome for both parties is to work with a property professional who can keep a cool head and organise for them to obtain independent and qualified advice on the extent of the problem, the repairs necessary and the probable cost of those repairs. They can then negotiate and reach an informed agreement about what to do.
"And it is even possible that they will ultimately agree to split the cost of whatever repair work is necessary - a solution that may suit buyers who have already planned some alternations or improvements that can be carried out at the same time as the repair work, and who would like to speed up their occupation date."
Author: RealNet
