Ludwig Schröder Estate Agents

FAQ



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CAN I SELL MY HOME WITH OUT THE SERVICES OF AN PROFESSIONAL ESTATE AGENT?

NO……. NEVER !!

Do you have the time to market your home by writing adverts, holding show houses, contacting buyers, etc?
Do you know how to show your house to its best advantage without becoming defensive about negative comments?
Do you know how to objectively compare the price, condition and features of all homes on the market or that have been sold in the past six months, to arrive at a competitive price?

Do you know and understand the numerous documents and procedures associated with selling?
Are you aware of the total costs involved in the selling process?

Then contact Benno Emmrich @ 081 246 4446

WHAT ARE TRANSFER COSTS?

Transfer cost is payable by the buyer, unless the property is registered in a close corporation (CC). Please note that transfer fees is always applicable for government and parastatal employees. Transfer cost is set out by the government consisting of conveyances fees, V.A.T, Transfer duty and stamp duty, and is not negotiable.

Explain the Home Loan Repayments

A: Do I Qualify?
You must be over 21 years old and have a fulltime employment. Your monthly bond repayment must not be more than 30% of your gross income per month, keep in mind that there will be additional costs involved, i.e., rates & taxes, life insurance, bond cost etc. You must have a clear credit record.

B: What are interest rates and how does it affect a home loan?
Financial Institutions offers differed rates to different clients. Therefore your monthly bond repayment is affected by the interest rate charged. Interest rates vary form 14 – 17% (residential properties). However, rates can be negotiated with your Financial Institution.

C: What are the Deposit?
This varies from client to client and what amount is being applied. It is normally 10% of purchase price, but depending on credibility at your Financial Institution.

House hunting – Where do I start?

First things first. Ask yourself why you want to buy a home;

  • to stop paying rent?
  • to start building equity?
  • to have a place of your own?
  • to move up to a bigger home?

Next list what kind of home you would like and where you like it to be. Be specific. Separate the “must have’s” from the “want to have’s”. Rate both lists on a scale from 5 (high) to 1.

Think of yourself as zeroing in on a target, going from the general to the specific. Consider:

  • Area ( suburban,);
  • Community (north, south, east or west side);
  • Neighbourhood (older, and settled or sparking new; recreational facilities and other community services; transportation; day care; stores; entertainment ).
  • How long are you willing to commute to work?
  • Think about home styles (1-story, 2 story, townhouse, ect).
  • How much space do you need, and how much will you need in the foreseeable future (number of bedrooms, baths, kind of kitchen and total rooms); size and kind of property.
  • Do you want a new home, or an older one to fix up?
  • Is the community a good area for resale? Someday you or your family will want to sell.
  • Consider how long you expect to live in this particular home. Keep going with whatever you want to add.

Knowing exactly what you think you want makes house hunting and later decisions easier when you get into the nitty-gritty aspects of buying.

I am ready to buy, what now?

At this point you’ve narrowed your possible choices to one specific home. You’re now ready to sign a contract and actually buy your home.
Your agent knows the way and with that experienced assistance you can navigate with confidence.

What happens After Signature?

NB! A Deed of Sale is a legal document. Make sure you understand what is written in it before signing.

Approval of loan
On signature of involved parties (buyer, seller, agent and witnesses) your agent sends a copy of the contract to the financial institution of you choice. After a reasonable period, within 21 days, the home loans consultant will let the agent know if the loan has been approved and the property has a successful valuation.

Process of transfer
The original contract is forwarded to the chosen conveyancer, and the process of transfer follows:

After receiving the Deed of Sale from the estate agent, he/she conducts a Deeds Office search to establish the correct property description, registered particulars of the seller and purchaser and particulars of bonds registered over the property.

The conveyancer then drafts the transfer documents, which must be signed by the seller & purchaser. The purchaser is furnished with a statement of account for transfer costs. The purchaser must pay it in cash, alternatively he/she can request his financial institution to include the cost in his/her home loan.

If there are bonds over the property, the conveyancer requests the financial institution in whose favour the bonds are registered to furnish the amount required to cancel the bonds (the “cancellation figures”).

On receipt of the cancellation figures, the conveyancer then requests bank guarantees from the financial institution, which has granted a loan to the purchaser. The guarantees are used to secure payment of the purchase price, including the cancellation figures.

The existing bondholders will then instruct their conveyancers to draft the necessary documents to cancel the seller’s bonds in the Deeds Office.

If the purchaser obtained a loan to purchase the property, the financial institution granting the loan, will instruct their conveyancers to draft the necessary documents to register a new bond over the property. The purchaser must sign these documents. Bond registration costs are payable by the purchaser.

On receipt of payment of his statement of account, the conveyancer obtains a transfer duty receipt. He contacts all the other conveyancers who are involved and the documents relating to the transfer of the property, existing bond cancellation and registration of the new bond, are all lodged at the Deeds Office for registration.

The process in the Deed Office takes about 7 days and then the transactions are registered.

On date of registration the purchaser becomes the legal owner of the property. On this date the conveyancer pays the cancellation figures, any outstanding amounts owed to the Municipality and the estate agent. The balance of the purchase price goes to the seller. Interest on the purchaser’s bond starts to run from date of registration and the first instalment is normally payable on the last day of the month in which the transfer was registered.

When can I move in to my house?

Occupation should be agreed on a date mutually suited to both parties. It will often occur, however, that one of the parties is in occupation of the property whilst it is registered in the other’s name, thus requiring the occupier (who may be either buyer or seller) to pay a rental to the owner. Entitlement to such rent is not automatic and should be specified in the agreement of sale.

The amount of the rental is usually agreed at a level commensurate with rentals available in the market.

How will an Agent serve you?

Today, more than ever, consumers face difficult decisions concerning their real estate needs.

They must rely on more than snap judgements, current trends and intuition. The era of high interest rates, soaring inflation, tight money and alternative financing has taught consumers that the “do it yourself ” approach to real estate isn’t the answer.

The answer is to consult a professional estate agent, a trained, qualified property professional who combines experience, education and know-how to promote the client’s welfare and the common good for all those involved in a transaction.

We provide quality service. Our commitment to the real estate profession is strong and our obligation to observe high ethical standards is uncompromising.

We subscribe to the Code of Ethics and practice that code in daily options.

We know our particular market. Because we know areas and conditions vary, our expertise is invaluable to you.

We accept the responsibility to keep pace with the changes in the real estate industry, locally and nationally. Not only do we keep pace with the industry, but we have access to pertinent information regarding laws, proposed legislation, government guidelines, public policies and other appropriate concerns, which affect client interests.

We will recommend that legal counsel be obtained when necessary and do not take the place of legal counsel.

We will present the true picture when advertising.

We enhance our professional abilities and develop our skills and knowledge through educational courses.

Why is a sole mandate important when selling my home?

A sole mandate will sell your home faster … at the best price possible.

In ignorance of correct real estate marketing techniques, home owners invariably grant selling rights to all and sundry in the mistaken belief that the more agents they have working for them the better their chances will be of obtaining a quick sale at a good price.

This is in fact not the case!

“Too many cooks spoil the broth” Property listed indiscriminately with every Tom, Dick & Harry is cheapened. Buyers wonder why the efforts of so many firms are required to sell it.

You cannot expect an agent to try to get you the best possible price for your property knowing that a dozen others are offering it also. He will do what you have forced him to do. He will put pressure on you to accept the first offer made, because there may be a dozen others breathing down his neck with a possibility that one or two may come forward with something better.

With a sole mandate the agent has greater inducement to study the property thoroughly, to devote time and effort and incur the expense of finding a prospect willing and able to buy the property as quickly as possible.

By giving a sole mandate to a reputable agent you would know that he is advertising your property properly, and that he can offer it freely in the best channels and in the best method to attract buyers. He has time. There is no urgency. The transaction can be concluded in a calm, relaxed and dignified atmosphere, because you and he would be protected against piracy.

A competent and self respecting agent would rather list ten properties exclusively than take one hundred open listings. If you are one of the ten, your chance of selling and at a good price, is better than if you were one of the hundred.

List your property with one live, wide-awake firm; it will serve you better than ten dead ones who list everything offered but sell little.

If you expect and agent to protect you, you should, as a matter of fairness and reciprocity be willing to protect him by making him your exclusive agent.

Is the Agent more committed with a Sole Mandate?

Definitely Yes , he will ……

  • Work for you full time, on duty all the time.
  • Determine the fair market value of you property by current market analysis.
  • Suggest ways to show your property to the best advantage.
  • Advertise your property through the newspaper, show houses and to my list of buyers.
  • Highlight your property’s best features when I show it.
  • Arrange showings at your convenience and keep you informed of all activity pertaining to the sale of your property.
  • Keep you informed of current financial options.
  • Educate buyers and determine and arrange types of financing they can obtain.
  • Assist in all negotiations and keep lines open between you and the buyer.
  • Synchronize all buyer/seller transactions and handle all paperwork.
  • Handle any and all complications … from the time I list your property through to closing.

Is correct house pricing important?

ADVANTAGES OF PRICING CORRECTLY

  • Faster Sale
  • Creates impression of good value
  • Less inconvenience
  • Maximum exposure during initial 3 weeks
  • Exposure to more Buyers
  • Marketing period minimised
  • Fewer showings
  • Least disruption
  • Increased advertising response
  • Stimulates buyer interest
  • Attracts higher offers
  • More money in less time

What will happen if I overprice my house?


  • Extends marketing period
  • Advertising response reduced
  • Seller gets lower offers
  • Continuous price reductions
  • Property becomes overexposed
  • Discourage potential Buyers from viewing
  • Competing properties become more attractive
  • Lack of Buyer interest
  • Buyers are reluctant to offer
  • Buyers eliminate the property based on price
  • Best marketing time is lost (first 3 weeks)
  • House finally sells below market fall

What must I do when I want to sell my house?

Preparing your home for selling
Create a warm and homely atmosphere for prospective buyers. There is no need to redecorate your home extensively before putting it on the market, yet some attention to the following will pay dividends:

Inside your home
Since you will be marketing your home as well, take advantage of the incentive to make your home look more spacious by discarding unused items.

  • Check cupboards for neatly arranged clothes, make sure as few items as possible are stored on overhead shelves.
  • Leave kitchen tops uncluttered. Arrange the inside of the kitchen cupboards in an orderly manner.
  • Go through the attic, storeroom and garage and organise them so that they appear as spacious, neat and clean as possible.
  • Check all walls for smudges, chips in paint and torn or loose wallpaper. If the walls are in poor shape, consider painting – be sure to use only neutral colours.
  • Wash curtains, or dry clean if needed.
  • Shampoo carpets, wash floors. If your carpets have seen better days, consider replacing them.
  • Tighten loose doorknobs, cupboard doors, towel railings, light switch covers. Fix sticking windows, squeaking doors. Repair and clean waterproofing around baths and hand basins. Fix leaky taps and remove water stains.

Outside your home
The appearance of the house from the street is very important – first impressions count. Maximize your sales potential by ensuring this appearance is appealing.

  • Keep your lawn trimmed and edged. Remove all garden refuse.
  • Put away lawn equipment. Arrange outdoor items, patio furniture, etc.
  • Repair broken perimeter walls and paint.
  • Clean out gutters – touch up with paint, realign if crooked.
  • Fix broken windows and clean.
  • Check roof tiles that need replacing.
  • Make sure the outside lights and intercom work.

Is an Estate Agent bound by any professional code?

ll estate agents are subject to the Code of Conduct framed in terms of the Estate Agent’s Act, focussed primarily on the relationship between estate agents and the consumer.

Is an Estate Agent’s commission negotiable?

There is no tariff regulating commission and, while most agents use the commission tariff recommended by the Institute of Estate Agents, this is purely voluntary (7% of purchase price).

The Code of Conduct regulating the professional ethics for estate agents prevents an estate agent form stating to a party that he is precluded by law from charging less than a stated commission.

After our superb service, do you really want to negotiate on our commission?

Is Vat payable on commission?

The VAT act requires that any company earning a gross income of more than R200 000 per annum be registered as a “vendor” and therefore pay VAT. In most cases this would apply to Estate Agencies, therefore 15% VAT is payable on our commission.

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Ludwig Schröder Estate Agents Swakopmund, Namibia

Ludwig Schröder, founded 1919 in Swakopmund, Namibia, specializes in the field of property as estate and managing agents, collection of rents, valuations, auctions as well as the planning and development of new apartment buildings.

P.O Box 48
11 Daniel Tjongarero Street
Sawakopmund, Erongo, Namibia
Tel: +264 64 402 349
Fax: +264 64 4040 014


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