Property360 - National Digital Magazine - 21 July 2023

Same but different

WHY SOME PROPERTIES SELL FOR MORE THAN THEIR NEIGHBOURS PAGE 3

These are the biggest turn-offs about your home

IF YOUR property is located near or next to an informal settlement, a busy freeway, or even a cellphone mast, you may have a hard time selling it one day.

Buyers may also not be keen to buy your home if the area in which you live has high levels of crime or decay.

Even if they do choose to put in an offer – after all, they could be moving from areas with similar or even worse states of decay and levels of crime – they will not pay what you believe your property is worth.

Unfortunately, no matter how well you take care of your home, or how many upgrades you make, your property’s value could still be spiralling downwards, for reasons out of your control.

Crime trends can go through different phases, so sometimes you may find your area finding a little reprieve after a particularly hard period of criminal activity. In any event, having good levels of security and alarm systems will help mitigate these risks and help you still find favour with potential buyers.

If the situation looks to have no hope of improving, then you may have to consider selling your property for the best price you can get. After all, the longer you wait, and if crime continues unabated, your home value will continue to decline.

Similarly, if your suburb is seeing increased decay and signs of neglect, with dilapidated buildings and untidy public spaces – which can then also fuel crime –you may need to get out as soon as possible. Alternatively, you could try clean up the

area and remedy the situation by working with the municipality and community groups. If this fails though, you may have no choice but to let go of your home. Obviously, this decision will depend on a number of things, including your financial situation, how long you have owned your home, and whether you can afford to buy in a better area.

Cellphone masts can also be turn-offs for potential buyers and detract from nearby properties’ values and aesthetics. There will probably be people who like the idea of the masts because they will have better connectivity, but, for many, there are still perceptions that the energy and radiation they emit are harmful to one’s health. These masts can also be eyesores.

A few years ago, a home in Randburg, Gauteng, struggled to find a buyer as it was located next to an unsightly cellphone tower.

Anecdotal evidence from real estate agents also shows that other properties located next to cellphone towers have taken years to sell, or sold at low prices. Even if they are camouflaged or dressed up like fir trees, they are easily spotted.

Other factors that can devalue a home include:

✦ Being located close to an informal settlement

✦ Being located close to major highways and busy, noisy, dangerous roads

✦ Large stands that create a perception of reduced security

BY BONNY FOURIE bronwyn.fourie@inl.co.za

✦ Water features, pools and highmaintenance gardens On a micro level, there are also aspects of your particular property that could be driving down its value, and without you even knowing it, says Richard Gray, chief executive of Harcourts South Africa. He shares 11 of the most common reasons your property may not attract the prices you expect:

1. Excessive clutter and poor presentation Homes that are cluttered and poorly presented can give off a negative impression, reducing their market appeal. You should consider decluttering and even engaging a professional home stager to enhance the visual appeal of your property.

2. Unconventional decor and colours Bright and quirky interiors may not resonate with all buyers. It is, therefore, prudent to stick with universally appealing, neutral colour schemes that can serve as a blank canvas.

3. Poor kerb appeal The exterior of a home creates the first impression so spending time on this, from the paintwork to the garden, can significantly enhance its kerb appeal.

4. Unpleasant odours Unpleasant odours can be a turn-off for potential buyers. Keeping a home fresh and odour-free is key. This includes attending to any plumbing issues that might cause unpleasant smells.

5. Substandard DIY renovations Poorly executed DIY renovations can significantly impact a property’s value. Professional services should be employed for complex tasks, particularly those involving gas,

electricity or plumbing.

6. Unauthorised home improvements Building without necessary approvals can lead to serious issues during the selling process. It’s crucial to seek all required permissions before making significant changes to a property.

7. General state of disrepair Minor maintenance issues can accumulate over time and reduce a home’s value. Before listing, you should address any minor repairs or updates needed.

8. Outdated kitchens and bathrooms These two areas are often key selling points for a house. If they are outdated, it may be worth considering updates, even if they’re minor ones, to enhance the property’s appeal.

9. Poor energy efficiency With growing consciousness about environmental impact, properties with poor energy efficiency can deter buyers. Improving energy efficiency, such as installing energy-saving appliances and insulation, can positively influence a home’s value.

10. Inadequate security In South Africa, security is a significant factor for buyers. Investing in robust security measures can not only increase peace of mind but also the perceived value of the property.

11. Poor insulation Homes with poor insulation may have higher utility costs, which can be a turn-off for potential buyers. Proper insulation helps keep a house warm in the winter and cool in the summer, thus reducing energy costs and making the home more comfortable to live in.

Crime, poor location, neighbourhood decay and even cellphone masts can deter potential buyers. Here are factors that can devalue your property and tips on how to improve your chances of selling

PICTURE: KELLY / PEXELS

Here’s why your neighbour’s home may be worth more than yours

PROPERTY values can be a contentious issue, particularly for homeowners who may have different perceptions to real estate professionals or even buyers.

Sometimes this difference is due to the emotional connections they have to their homes, and other times it is a misunderstanding as to what factors actually dictate a property’s value.

Property trends and “fashions” also have a strong impact on what makes one property more valuable than another, so value – and selling price – can be dependent on the times.

This means factors of supply and demand are probably the most accurate gauge to determine a property’s worth. But property professionals note that not even this is 100% reliable as buyers themselves will place different values on different property elements.

A property’s location and features have a “big influence” on its value, says Adrian Goslett, regional director and chief executive of RE/MAX of Southern Africa. The main principal that contributes to growth in property prices is, like all fields of trade, supply and demand.

“The higher the demand, the more the seller can charge. When a country’s economy has hit a dip, this will have a knock-on effect on consumers’ buying power, which means the demand for property will drop and sellers will have to

reduce their prices in order to sell.”

Each suburb, however, has its own target market and price range, and this dictates the upper and lower limits of property values there, says Tony Clarke, managing director of the Rawson Property Group.

But even within this price band, there are often certain roads or blocks that achieve higher-than-average prices.

“Typically, these pockets of more expensive properties will be positioned in the most convenient, picturesque or soughtafter parts of the neighbourhood. They may have better views, better orientation, or better security than those nearby, and because they attract a more affluent buyer, they are often more modern and wellmaintained.”

When determining value, a professional evaluator will look at both a home’s features as well as its condition. They will also compare the property to others in the area before coming to a decision.

At the end of the day though, the selling price comes down to what features the buyer is looking for and what they are prepared to pay. For example, a swimming pool may be a negative for a busy professional but a huge magnet for a family with children.

Buyers will, therefore, pay for what emotionally excites them and this could, in most cases, be the wrong approach to determining the value of a home. What is horrid to one potential buyer may be acceptable or even pleasing to another, says

Rode and Associates’ Erwin Rode.

He adds: “Fashions come and go, and this also applies to the layout and finishes of a property.”

Sea views, a waterfront location, proximity to schools and amenities, and ease of access to work and business are positive location aspects that add to a property’s value. Increasingly, people want to live close to work and enjoy lifestyle benefits during their free time, says Samuel Seeff, chairman of the Seeff Property Group. Some suburbs also have the X-factor and a better reputation so they attract higher prices.

“You can find instances where similar homes just streets apart can differ substantially in value, simply because they are in different suburbs. For this reason some properties will sell only in certain upper-end price bands in particular neighbourhoods.”

Seeff says the more people want to live in a suburb or area, the higher the demand. If the demand exceeds supply, prices will generally increase.

Other contributors to a property’s value are accessibility to major freeways, being in areas where rush-hour peak commutes can be avoided, and being close to good schools. And as everything is about the rising cost of living and how people can save time and money, this means low-maintenance homes with semi self-reliant energy and water resources tend to offer better value. When it comes to security, the more bells and whistles a home has, the better.

The appeal of a home and what people are willing to pay for it is largely dependent on perception, Goslett says. This even extends to street names.

“Streets and roads sound pretty ordinary, but avenues, drives and hills sound a little more high-brow. Likewise, properties with a name rather than just a number tend to be viewed as special, and achieve better prices when marketed as such.”

Homes within an easy stroll of shops, restaurants, parks and public gardens are sought-after and valued, while the more self-sufficient your neighbourhood, the more people are willing to pay to live in it. Having a tech-friendly home is becoming more important so properties with features such as built-in charger points and thoughtful power outlet positioning can increase the desirability, and price, of a home.

Other features that can add to a home’s desirability include:

✦ Home automation tools, particularly for security systems

✦ Eco-friendly value-adds like solar heating or power generation and grey-water recycling systems

✦ Granny flats to accommodate family members

✦ Office space

Similar homes within the same neighbourhood can sell for very different prices . PICTURE: GRACIE EMORY / UNSPLASH

Experts say a property’s location and features have a big influence on its value. Better views, orientation and security will attract buyers BY BONNY FOURIE bronwyn.fourie@inl.co.za

FOR SALE

R 1 295 000

2 BEDROOMS | 2 BATHROOMS

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• Fitted kitchen with electric oven, hob and extractor and plumbing for washing machine.

• Open-plan lounge with parquet flooring

•Two double bedrooms with an en-suite bathroom complete with bath and shower. • Covered Parking bay. • Prepaid electricity

ERF: 1471m2 | HOME: 70m2 | RATES: R 450 p/m | LEVIES: R 1500 p/m

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EXQUISITE 3 BEDROOM APARTMENT

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AGENTS’ DIRECTORY

DOGON GROUP PROPERTIES

Atlantic Seaboard Office 021 433 2580

thekings@dogongroup.com

www.dogongroup.com

RHONDA RAAD PROPERTIES

Cape Town Office 082 448 7795

Email: rrpsales@mweb.co.za

www.rhondaraadproperties.co.za

ASKA PROPERTY GROUP

Sandown, Milnerton Estates

Office 071 604 8493

Email: corlia@aska.co.za

www.askaproperty.co.za

DOGON GROUP RENTALS

Sea Point Office 021 433 2580

enquiries@dogongroup.com

www.dogongroup.com

DE PLATTEKLOOF

Cape Town 060 960 0100

Email: live@deplattekloof.co.za

www.deplattekloof.co.za

IRENE PORTER PROPERTIES

Simon’s Town Office 021 786 3947

Debbie 073 140 2543

www.ireneporterproperties.co.za

DOGON GROUP PROPERTIES

Southern Suburbs, Claremont Office 021 671 0258

southernsuburbs@dogongroup.com

www.dogongroup.com

PETER MASKELL AUCTIONEERS

KZN

Office: 033 397 1190

Email: info@maskell.co.za

www.bidlive.maskell.co.za

MURAMBI HOUSE

Wynberg Office

murambihouse@telkomsa.net

www.murambi.co.za

DOGON GROUP PROPERTIES

Western Seaboard

Office: 021 556 5600 or 021 433 2580

enquiries@dogongroup.com

www.dogongroup.com

VAN’S AUCTIONEERS

Gauteng Office 086 111 8267

www.vansauctions.co.za

www.iolproperty.co.za