When buying a home:

Get pre-approved

If you know what your budget limitations are you will not be tempted to look at houses outside of your price range. However, if you are in the market for a R600 000 home it's fine to look at houses in the R660 000 price range because prices are negotiable. Anything over that and you may be going into unaffordable territory.

If there is a problem getting pre-approval because of your credit rating, get copies of your credit reports and determine if anything on the report is inaccurate or over seven years old which means it must be removed.

You can go to www.credithealth.co.za to get a consolidated credit report for a small fee.

Make a wish list

Whether you are going to show houses on your own or using an estate agent, make up a list of what you would most like in a new home and prioritise it so you can determine what is most important and which items you are comfortable sacrificing. It will help you to steer away from making an emotional choice rather than a sensible one.

3. Location, location, location

   A great home in an undesirable or marginal neighbourhood (for any of several reasons) is not very worthwhile from a quality of life or from a home value perspective.

Know the neighbourhood

Learn as much as you can about the neighbourhood by taking a drive or ask agents who work in the surrounding areas. This is even more important if you are from out of town.

You may think you are getting a bargain, but the rest of the neighbourhood may know that there is a highway planned right behind your home.

Have an inspection done

This is especially important if the home is brand new. Hire the services of an independent home inspector to inspect the home including the roof, electrics, heating, pipes and so on. Make your offer contingent on an inspection. The Masterbuilders Association has qualified consultants that will provide you with a thorough report. The fee for this is around R1000 and it's well worth the investment.

If you are selling your home, keep the following in mind:

Think improvements

While you don’t necessarily have to add on an entire west wing, make some basic improvements. Fixing up the house can make a significant difference in the eyes of buyers. If the house needs a paint job, use neutral colours and the same with new carpeting. Also make the garden appealing.

Do you want to spruce up your home without breaking the bank? 'Sell fast, get your price' is a great article by Kabous le Roux, iafrica.com's property editor, that is well worth the read.

Don't commit

Don't commit to buying another property until you have sold your existing home, unless of course you can afford two sets of bond payments. If your house does not sell quickly you may feel pressurised to sell at a lower than market value. Having to spend a month in a hotel or with relatives is far cheaper than taking a huge knock on the asking price.

Assess your buyer correctly

If the buyer wants to make all kinds of creative arrangements in order to buy your house it is probably better to hold out for a clean offer. Selling a house is complicated enough, dealing with someone who wants his brother's girlfriend's second cousin to partner him in the deal can be a recipe for disaster and waste valuable time.

Be patient

Selling a house can be a painfully slow process, especially when it comes to receiving the cash. Make sure all the correct documentation is in place and follow up on the attorneys religiously (once a week). Yours is not the only home they are dealing with, so nagging them (gently) may get your stuff moved to the front of the queue.

Don't blow the cash

If you sell your home and find yourself in the position of having a load of cash in the bank, resist the temptation to spend. Every cent you put down as a deposit on your new home reduces the amount of interest you have to pay. If you take R10 000 to go on a splurge it will add R100 per month to your repayment, it may not seem like much now but over the life of the bond it will amount to R24 000.