The property market continues to surprise on the upside with excellent activity and record sales in many instances. We have also seen high value property sales of over R50 million being concluded recently, says Samuel Seeff, chairman of the Seeff Property Group.
It is not just a great time to buy, but a good time to sell as well, especially if the seller wants to take advantage of the low borrowing costs to buy up. Generally, the aim of a seller is to achieve the highest possible price in the shortest timeframe. The better prepared you are and the better the condition of your property, the more likely that you will achieve this aim, says Seeff.
Start with ensuring your property is neat and compliant. Seeff says that you do not need to embark on renovations as these are unlikely to achieve a higher price. The most important aspect is usually to present the property in the best possible condition.
Everything should be in a good state and working condition. The property must be neat and tidy, from the pavement to the garden and boundary walls and the exterior and interior of the home. That would be an excellent start to ensuring that your home can achieve a good price in the market, he says.
Two things will happen if the property is not presented in a great condition. Buyers will either put in lower offers, or they will simply move on to the next property which they perceive to offer better value for the asking price.
Seeff says that it is important to realise that most buyers are not DIY experts and have neither the time nor inclination to make repairs. They are not clued up on the cost of repairs or upgrades and tend to apply a multiplier of times five to ten to the cost, then deduct that from the asking price.
For example, if there is a visible crack which requires filling and painting, the repair cost may only be around R20 000, but the buyer will attach a value of R100 000 and reduce the price that they are prepared to offer by that amount, if they in fact make an offer at all.
When considering renovations, bear in mind that your taste is not necessarily the same as that of a prospective buyer. Generally buyers are attracted to nice kitchens and bathrooms, plenty of cupboard space, neat floors and often a good entertainment area and braai patio.
Always keep it neutral and stick to current trends. It is advisable to keep the basic finishes updated with current trends but take care with bright colours as these tend to be seasonal. Personal taste and preference also differ drastically, and Seeff says it is best to keep it neutral.
He says further that if you are buying with the view to renovating and turning a profit, it is vital that you do your homework in terms of current sales prices in the area and what the homes offer. You then need to weigh up the cost of the planned renovations and how that would influence the asking price and assess whether the market is ready to pay that price.
Always consider whether the end price is within the range of current sales pertaining to the specific location and neighbourhood. Regardless of how big or stunning a house is, the selling price will usually depend on the location, other properties in the area and selling prices at the time.
Author: Gina Meintjes, 28 May 2021, Expert Insight