At face value: Here's what adds real value to a property
Category Newsletter: Lead Article
Irrespective of its size or shape, a property can always be viewed as an investment. Adding value to that investment is important but not all additions or improvements to a property add direct or even tangible value.
"Don't assume that because you spent R400 000 on a kitchen renovation the property is immediately worth R400 000 more. Sometimes it can be the case, but mostly there are a number of other factors, including location, overall state of the property and prevailing market conditions, that ultimately determine the value - or more accurately - what a buyer in prepared to pay for the property," says Johan van Schalkwyk, Principal at Leapfrog Roodepoort.
Consider what does add value:
Curb appeal
Curb appeal is a vastly under-rated part of the property value equation, Van Schalkwyk believes. Curb appeal refers to the general attractiveness of a property when viewed from the street - simply, what it looks like from the outside.
A property that's well maintained on the outside makes a good first impression, which immediately adds value in the mind of the prospective buyers.
To this end, Van Schalkwyk recommends prioritising the upkeep of the property's exterior as part of routine maintenance. "Paint the exterior, keep the garden clean and tidy, create an interesting entry point like a pathway to the front door as these are all additions that add real value."
Alternative energy
South Africa's energy woes are far from over, and with loadshedding set to be in place for a while still, properties with a solar system are increasingly in demand.
"Buyers view a solar system as a significant value-add and, depending on the size and nature of the system, are willing to pay more for a property that boasts this almost-essential feature," Van Schalkwyk says.
Beyond it being a solution to a current problem, investing in a renewable energy system for the home is also a sound environmental decision, in line with international trends and best practices.
Kitchens and bathrooms
'Kitchens and bathrooms sell homes' is the refrain of many property professionals. "This is because it is true!" Van Schalkwyk says. Both are high-use, personal spaces that people want to feel comfortable in. In many contemporary homes, particularly open-plan houses, the kitchen is a focal point and a popular gathering place and thus a key consideration for a potential buyer. Bathrooms, on the other hand, may not be a social space but an old, outdated one can easily create the impression of being impractical or even grimy.
"The short of it is that kitchen and bathroom updates definitely add value to a property. The extent of the value will depend on the nature of the renovations and will still be relative to the value of the property in relation to the market," Van Schalkwyk shares.
Clean and clutter-free
The last, surprisingly important, thing that adds value to a property is simply the way it looks and feels to potential buyers on show day. A property that is clean, clutter-free and inviting is one with a better chance of making an emotional impression on a buyer, which influences them to view the space in a positive light.
Property professionals often recommend that sellers spend some time staging their property before showing it to buyers.
The staging process can be as simple or elaborate as you choose, but involves styling it to make it appealing to others. It could mean rearranging furniture, fixing superficial defects (a good idea anyway), removing clutter from sight, or simply opening the curtains to allow natural light in or arranging flowers on a table near the entrance.
"When people like the look and feel of a place with the first impression, they almost immediately regard it as a property that offers great value. It's something we see nearly every day," Van Schalkwyk says.
It pays to remember Warren Buffett's famous quote "Price is what you pay. Value is what you get". Value can be subjective and mean different things to different buyers. A trusted property advisor can offer advice and guidance on the additions that add value to a property and that has the biggest impact on price when the property goes on the market.
Author: Leapfrog Property Group
