The strain is starting to be felt after months of interest rate hikes. Sellers will need to think more strategically before listing their homes if they want to ensure that their property is appealing to the shrinking buyer pool.
“When the property market is active, sellers do not need to do too much to their property to attract buyers,” says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa. “However, when market conditions get tough, sellers will need to make sure their home stands out in a crowded market,” he advises.
According to Goslett, while some upgrades are optional, others will become increasingly important when a homeowner is trying to sell in a buyer’s market, much like what we are experiencing in many parts of the country thanks to the high interest rates.
Because the kitchen and bathroom are the two of the most expensive rooms to fix, he explains that updating these rooms will become more important for the home to stand out from other similar listings. “A complete overhaul isn’t necessarily warranted in this regard. How much needs to be upgraded will depend on the condition of the bathrooms and kitchens in other homes that are selling in your area,” he says.
At a minimum, sellers will need to see to any maintenance issues or repair work, unless they are willing to receive low-ball offers. “When buyers are spoilt for choice, they tend to make cheekier offers, even if the home is in pristine condition. For a better chance of receiving full asking price offers, sellers should address potential issues to remove any reason for buyers to haggle on the asking price.”
Sellers who are tight on cash are advised by RE/MAX SA to focus on the small upgrades that can make a big impact, which could include:
Replacing outdated faucets
Replacing outdated light fittings
Replacing dated fixtures, such as doorknobs, cupboard handles, fixed mirrors, etc.
Repainting walls & ceilings
Address any maintenance issues or repair work.
“When there are fewer buyers around, it also becomes so much more important to work with a good real estate professional from a reputable brand such as RE/MAX. This is where an estate agent’s database, connections, and know-how really work hard to help sellers achieve a timeous sale at full value,” says Goslett.
Home improvement projects can offer significant rewards whether you are looking to put your house on the market in the immediate future or even if you are not interested in selling for years to come. But before you get started, you need to identify which improvement projects will increase both the resale value of your home as well as your day-to-day comfort.
Here are some ideas for home improvement projects that pay off courtesy of Home-Dzine:
Kitchens - Kitchen remodels are among the best for recouping the cost of renovations. Modernise with new appliances, counter tops and cabinets.
Bathrooms - Adding a bathroom increases the value of your home. So does upgrading an existing one. Adding new light fixtures, vanities with plenty of storage, ceramic tile or marble, and a new coat of paint are just some of the ways to improve a bathroom.
Outdoors - Building a deck or patio enhances your enjoyment of your garden and lets you recover approximately 85 percent of the project costs in added value.
Additions - Converting an attic into a bedroom or adding a family room are great ways to add value and make your home fit your needs as your family grows.
Painting - One of the most affordable and effective improvements you can make to your home is painting both the interior and exterior. Painting maintains the beauty and value of the home.
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