A home is more than just a place to live – it’s a valuable investment. Understanding its current value is essential, whether for future planning or even adjusting insurance.
READ: How to risk-proof your new property: Tips for first-time homeowners
Although the phrase “valuation” is commonly used when talking about your home’s listing price, this is technically not always accurate. Because municipalities, insurers, and banks have formal, legal frameworks for determining a home’s value, the people who conduct the valuations on their behalf must be registered with the South African Council for the Property Valuers Profession (SACPVP).
If somebody is not registered, then they cannot provide an official valuation. Instead, a comparative market analysis (CMA) is typically what a real estate agent provides. Some real estate agents do still choose to be registered with the SACPVP so that they can provide an official valuation.
In a CMA, statistics are gathered from various sources to determine the average price per square metre of properties in the area. The unique features of the property are then factored in – the more desirable the features, the higher the asking price will be.
Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett suggests that, for the best chance of securing a sale at full asking price, homeowners should always use a real estate professional who can provide an accurate assessment of the property’s value, instead of attempting to determine an asking price on their own.
READ: Ways to ensure your home holds its value over time
“While homeowners can browse similar listings online to determine the average asking price of comparable homes in the area, this method is not always reliable, as the initial asking price can differ significantly from the final selling price,” Goslett warns.
“This is important because a correctly priced home is more likely to be sold within the shortest possible timeframe. Buyers often assume that the seller will be more desperate to sell if the home has been on the market for months on end and will then approach the seller with low-ball offers,” he advises.
While it is possible for homeowners to get a rough idea of what their property could be worth by reviewing information that is widely available online, the most accurate way to determine a home’s value is still to involve a real estate professional.
“Whether you're planning for the future or just plain curious, remember this: knowing your home's true market value is like holding the keys to opportunity,” Goslett says.
READ: Tips: 3 ways to stay on budget when renovating your home
Seeff’s agents highlighted some cost-effective improvements which can increase the value and make the property more attractive to buyers. (click here to read the full article)
Repainting. New modern colours such as grey, green and even black are all the rage right now, but it does not have to be as dramatic as that. Even just upgrading the exterior and interior in new paint tones, albeit fairly neutral, can add value and could spark buyer interest.
Floors and tiled areas. Floors can be modernised with wooden or laminate flooring, or feature tiles in the latest trends, or new carpets. Wall tiles can also be replaced to give an instant update to the appearance of the kitchen and bathrooms.
Kitchen and bathrooms. If you are unable to do a complete remodel, consider cosmetic upgrades such as painting the cupboards, fitting new handles, adding open shelves, a new stove and appliances, new bathroom fittings, new mirrors and new towels.
Doors and bedroom cupboards. Another cost-effective way to upgrade is to change the door and cupboard handles given that there is now such a wide choice available. If the cupboards are old, you can repaint and modernise rather than replace.
New lighting and window coverings. You can also consider upgrading exterior and interior lighting to modernise the home. Upgrade your curtains or add American shutters or wooden blinds. You could also change from kirsch rails to rods to give it a modern touch.
Convert your patio into a braai room. If you have a patio, consider enclosing it and adding a built-in braai, and sliding or stacking doors to open it to the garden. This will enable you to enjoy year-round braai get togethers regardless of the weather, and add value.
Update the garden. Aside from general maintenance, you can add outdoor pots, or paint your pots or old garden furniture to give it a new lease on life. Adding pathways and garden décor can add interest to the garden.
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