Many home owners are seeking ways to reduce their monthly costs and often downscaling seems like the best option.
This is visible in the FNB House Price Index where 24.1% of sellers are downscaling due to financial pressure.
With the current real estate market conditions, the costs associated with selling a property and the impact of the high interest rate on personal financial circumstances, you might want to think twice before putting your house on the market. Let’s take a look at some of the factors to consider before putting your property on the market:
Considering Personal Factors
While understanding the market’s temperature is crucial, personal circumstances are an equally significant consideration. Ask yourself the following:
- Do you need a larger house?
- Will holding onto the property cause financial strain?
- Have you received an offer above the market value of your house?
- Have you found a “bargain” property that necessitates selling your current home to seize the opportunity?
Assess the financial implications of selling, such as agent commissions and costs associated with securing finance for any subsequent property purchase. It’s important to realise that changes in income or financial standing may influence whether you qualify for the same bond amount as when you purchased the property.
Getting ready to go to market
Maximise the appeal of your property without significantly inflating your asking price with minor, yet highly effective, tips and tricks from Just Property:
- For the outside: add a fresh coat of paint or spend some time on creating a well-maintained garden
- For the inside: Fix broken door handles, dripping taps and replace worn and dated fittings. Pack away clutter and give the bathrooms and kitchen a good clean. Home staging, the art of making a house look as appealing as possible without undergoing significant renovations, is another option to consider.
- Invest in photos: High-quality, attractive photos can significantly enhance a property’s online presence, casting it in the best possible light to potential buyers.
Are the upgrades worth the cost?
While making upgrades can increase a property’s value, it’s important to strike a balance. Additions like built-in cupboards, solar panels or enhanced security measures can substantially add to the value of a property, but they should be aligned with the ceiling value of the property and the character of the neighbourhood. For example, installing expensive countertops and appliances may add little value to a studio apartment in a student-oriented building.
To avoid overcapitalising, speak to an estate agent who understands the area well to give you an overview of your property’s current value and how the potential upgrades might increase the value.
