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Many of us believe that investing in our homes by making renovations and changes can increase the property’s value.
While that may be true some of the time there are changes and scenarios that could reduce a home’s value. If you want to boost the value of your home, adhere to these dos and don’ts.
1. Don’t overcapitalise on renovations
Renovating your home could mean that you sell it for more than you bought it for. But Andrea Tucker, director of MortgageMe warns you can do too much.
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‘If you spend too much on your house and it breaches the ceiling of house value in your neighbourhood, you’ll battle to get your increased asking price if the house looks to be more expensive than neighbouring houses,’ she explains.
Sayo Folawiyo, CEO and co-founder of Kandua.com, instead recommends making strategic home upgrades. ‘The trick is to invest in strategic home improvements without overcapitalising. There are certain upgrades that – even if done on a budget – will greatly increase the value of your home and allow you to up your asking price.’
Chief among these is in the kitchen, where sellers can expect to recoup between 60-120% of their investment. ‘While your refurbished kitchen’s ROI is also reliant on the condition of the rest of the home, an open-plan, modern kitchen is a major selling point for prospective buyers. Here one should consider elements such as having enough space for appliances, the general functionality of the kitchen (e.g., a dishwasher that’s close to a sink), and attractive countertops,’ says Folawiyo.
2. Don’t make the house too personal
Got ideas for a trendy feature wall that will make your home ‘unique’. This could subtract from the value of your home, rather than add to it.
Bold colour schemes are also a “no”. ‘The burnt orange lounge and sunshine yellow kitchen might float your boat but it’s very likely to put off many potential homebuyers if they think they are going to have to spend time and money redecorating. And if they do love the house, they are likely to lowball you, citing the redecorating costs. Always stick to neutral colours which will appeal to most people,’ says Claude McKirby, co-principal for Lew Geffen Sotheby’s International Realty in Cape Town’s Southern Suburbs.
3. Do upgrade outdated bathrooms or add more
A lack of bathrooms or not keeping them updated can also cause problems if you want to see an increase in value. ‘Consider ripping up the outdated bath-over-shower fixture and going for a clean, contemporary look. New taps, basins, tiles and/ or an updated vanity can make all the difference,’ says Folawiyo.
4. Don’t invest in a swimming pool
You may think that a clear, sparkling swimming pool may persuade buyers to pay more. But that isn’t always the case. According to bond originator, ooba Group, a pool gives a property an average increase of about 15%.
Many don’t want the burden of pool maintenance. ‘A pool pump uses significant amounts of electricity each month and must be run each day to keep the pool in good condition. With electricity prices being what they are and the average costs of installing a large pool at over R100 000 according to our estimates at Kandua.com, this is something to carefully consider,’ says Folawiyo.
5. Don’t be untidy
Clutter is a big put off for buyers. ‘Make sure your house is neat and clean on show days and that you haven’t got lots of personal stuff lying around. If necessary, lock this all away in cupboards if that’s possible!’ says Tucker.
I fully agree with the kitchen and bathroom updates! Also, when there is a major problem with for instance loose floor tiles, do not replace it! Tell the buyer about it. They might want something different anyway!