Buyers Guide

For most buyers, buying a piece of land or a house is likely the first biggest financial commitment they make in their lifetime. Therefore, being prepared in this context is to decide what, where, and why you want to invest your money in buying the house. Besides, it is important to understand the amount you can afford to buy the property. Some of the key issues you can think of at this step include how will you finance the buying (own money or take a loan), and the type of payment arrangement you can afford. will the neighborhood support the use of the house? will the house value increase or decrease with time? How far would you like the house to be located from the social amenities (Schools, bus stops, hospitals, etc.)?

Once you have a complete idea of what you want, which house features must be there, and which ones you can be flexible about, you can now look for one of our registered real estate agents to guide and take you through the entire process. Your relationship with your real estate agent is critical and the foundation of the property-buying process. We have a long list of highly qualified and experienced real estate agents across the country, who are reputable, responsive, and have a thorough local real estate knowledge of the region of your choice (please go through our agents’ reviews). However, clients have the right to interview our agents and find the right agent for their specific needs. Your agent will help you search houses that best fit your specific criteria through our multiple-listing system, contacts, and networks. Our multilingual listing platform enables you to sort houses by location (region or district), size, price, area code, etc. Additionally, our platform provides you with accurate descriptions and allows you to make a comparative analysis using various currencies (TZS, USD, and Euro), and get the first impression of the houses regarding the quality of the house and neighborhood, its location on the Google map, and distance from the main social amenities. While it is natural to focus on photos while browsing our site, make sure you read critically property description and other key features critically. From your wish list, our agent will take you out to open houses and showings. This stage presents a unique opportunity for you to evaluate the house or property in a way you cannot in online platforms.

NB: While some agents will demand a service charge before showings, rest assured that if you are working with our registered agents, the amount charged during showings will be reimbursed during closing.

Once you have already identified the house(s) that meet your specific needs and you are certain you want to buy it, your agent will assist you in crafting the offer specifying the price you can afford to pay, payment arrangement including opening an escrow account, proposed settlement date, contingencies (A financing contingency, appraisal contingency, a clear title contingency, etc.), and other conditions you consider important and that must be mutually agreed such as making a comprehensive pest and structural inspections, request some repairs, etc. Once the offer is well prepared, your agent will deliver the offer to the house or property seller. Once the seller receives the offer, together with the seller’s agent (if applicable), they will keenly review and discuss the details of the offer and raise questions (if any). The seller has the right to accept the offer as it is, reject it, or present a counteroffer. In rare cases, house sellers accept the offer they receive, but many house or property sellers make a counteroffer which invites the negotiation process (if you like it) or walk away.

The negotiation process is among the challenging stages of real estate transactions and demands the most creativity. It is for this reason that the service of an experienced and knowledgeable local real estate agent is critical to helping you nab the best deal. The negotiation process will terminate when both parties mutually agree to the terms and conditions specified in the offer. It is important to understand that there is no “one size fits all” approach when it comes to negotiations. Therefore, it is critical to know some tips that will help you manage the negotiation process. Below are some of the tips that will help you stay on top of the game: -

1. Respond fast to counteroffer (ideally, within 24 hours).

2. Raise your offer/price reasonably.

3. Increase the amount of your down payment/deposit reasonably to show seriousness.

4. Be flexible about your move in date.

5. With caution, let go of a few contingencies.

6. Agree to cover some of the costs of the house warranty.

7. Know when to leave the (negotiation) stage or walk away.

Closing is the last stage of the house or property-buying process. This is when buyer and seller sign the final ownership and make this whole thing official. This state is almost the same for both, property sellers and buyers. Once the seller and buyer have efficiently taken care of their contractual obligations associated with finalizing the sale, the process of completing the transaction will likely go smoothly with no surprises. In most cases, a pending sales agreement includes contingencies and special conditions that must be fulfilled by the contracting parties by the closing date, which usually ranges from 30 to 60 days after both parties sign the agreement. It is crucial at this point for each party to review the sales agreement to understand its obligations and meet them accordingly before the closing. Some of the contingencies and special conditions may include: -

1. Securing mortgage/financing.

2. A Title Search.

3. The purchasing of the Title Insurance.

4. Property Appraisal by professionals.

5. Fulfilling additional contractual promises made during the process.

6. Inspecting pest infestations/damages, structural and functional conditions of the property.

7. Conducting a final walk-through (i.e. a final visit to the property to check if the property is in the same condition from the date the sale agreement was signed).

The closing process is handled differently in various places, however, in many cases it involves a closing agent, often a lawyer, who conducts the proceedings – reviews the sales agreement, and does the following: -

1. Determines the total amount due from the buyer and all the adjustments (e.g. seller prepayment of taxes, utilities, etc.) and ensures that they are factored into the transaction.

2. Ensures the transaction costs such as closing, legal fees, etc. are paid.

3. Determines the buyer’s payments, credits, and adjusted net proceeds.

4. Witnesses the signing of the property title and all other documentation associated with the transaction.

5. Provides the buyer with the net proceeds and copies of the documentation about the sale.

6. Collects the checks, keys, and any other necessary items from the seller.

7. Ensures that the title is properly recorded in the local records office along with any mortgage lines.