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Every homeowner wants the best possible return when selling their property investment. Objectivity is often difficult though, because, unlike other investments, owners can have a financial and emotional stake in their property.
Cobus Odendaal, CEO of Lew Geffen Sotheby’s International Realty in Johannesburg and Randburg explains some of the key questions realtors and buyers will be asking when assessing if your home for a sale.
1. Right price
Listing a property at an inflated selling price not only slows down the sale time but usually results in it selling for much less.
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‘It’s critical to price your home correctly right from the beginning because when buyers have as much choice as they currently do, they generally prioritise value for money and, if yours is over-priced, they’ll probably opt for a similar home at a better price. Additionally, if a buyer does make an offer, and the appraised value comes in significantly lower than the agreed-upon selling price, the bank could decline to provide the buyer a mortgage,’ warns Odendaal.
2. Location, location, location
“Location” does not only refer to the suburb in which your estate is located but also to where your home is positioned within it. A suburb’s value is generally based on several factors including proximity to schools, hospitals, and amenities such as parks and shopping centres. A home’s value can also be determined by how far it is from things like entrances and the clubhouse.
3. How does it look and feel?
Property values are impacted by how old the house is, the materials used in its construction, and the architectural style and square meterage of the plot. In an estate, things like the maintenance of the communal areas and the range of lifestyle amenities offered also add to the valuation.
‘Contrary to popular belief, a new home doesn’t necessarily appraise higher than an older one. Although they are less likely to have major issues and are lower risk for buyers, large well-maintained older homes in desirable architectural styles with original features and more liveable space can also attract high valuations,’ adds Odendaal.
Remember, that while size counts, it is also important that your space is distributed well and is usable and liveable.
4. Supply and demand
Supply and demand keep shifting, so the current state of the local market will significantly impact the final appraisal of your home. If the market is saturated with buyers but there are few houses for sale in your estate, home values will typically be higher.
If, however, there are many homes on the market and too few buyers then you would typically have to lower your home’s value as there will be too much competition. It’s important to understand what the market is doing and price your home accordingly.
