Staying, Selling or Renovating?

Not sure if you should do some home alterations before selling it?  Will the renovations increase the value of your home?  Here are a few things to consider before you embark on major pre-sale renovations.

Adrian Goslett, CEO of REMAX of Southern Africa, says: “The decision to stay put and renovate your existing home, or to sell it and buy another house, is largely dependent on each homeowner’s individual circumstances and preferences. 

If you do decide to renovate your home, be careful of overcapitalising, where you spend more money on additions or renovations than the value they add to your property. The total value of your property, which comprises its current value plus the cost of the proposed additions, should not be more than 25% higher than the average property in your area.”  

Then there is also the question of whether you should just sell your home as it is, or renovate a bit before selling.

Here are a few things to consider:

Be money-wise:

This should be your first consideration – if you will be losing money on your home when you renovate and resell, you should definitely just sell it as it is. But if a fresh paint of coat and little things here and there can earn you an extra R200 000 – it is definitely worth your while. Do your homework carefully and then make a decision. 

Is your home functional:

It is essential to fix major problems such as plumbing and electricity if you want to sell your home and also to take care of any visible problems. These problems will scare off potential buyers and will also result in you having to give discount on the price you want for your home – which might be more than what it would’ve cost you just to do a few renovations. Measure it up!

Is your home too old:

Have a look at your home and decide if it is outdated? This can be improved with a few alterations here and there like replacing light fittings and door knobs, a new coat of paint, new carpets or tiles and even new kitchen counter tops. Again ask yourself if these renovations will be worth your while in the end.

Is your home actually ok:

With this statement I do not necessarily mean that your home should be on Beverley Hills standard – but sometimes a home is relatively modern and well maintained and this will most likely be enough to attract possible buyers. Do not spend money if you do not need to.

Tip:

 Sometimes it is better to renovate rather than to relocate as you get to keep your existing bond and do not have to reapply for one – which will also give you instant access to funds if you take a loan on your bond.

Renovating for yourself

Before starting on any home improvement project, carefully consider project costs versus the results and reasons behind this decision. Plan your project in advance, with plenty of time to shop around for best prices and selection of materials. At the moment doing-it-yourself will be the most cost effective option, but some things are better left for the professionals to do. 

“To calculate what it will cost you to renovate, you need to compare a couple of quotes from building contractors. Since the cost of renovating or building can vary dramatically, depending on what you want done and the finishes you choose, it is essential to get detailed quotations that specify the exact finishes you want. Quotes that are based on estimated per-metre costs are dubious at best, and don’t allow for proper comparisons. They often lead to much higher costs down the line. It is also important to consider your future needs. For example, it won’t really be worthwhile to add two extra en suite bedrooms if your children are expected to leave home in the next few years,” says Goslett.  

Where to start?

According to Goslett renovations that add the most value to a property comprise upgrades to the kitchen, bathroom, living and entertainment areas of your home. “But always remember, it is more often than not, kitchens and bathrooms that sell homes.”  

Although expensive, these areas are often the best place to start renovating as it is not only where you spend most of your time, but also the first place guests see when they enter your home. Make these areas work for you! 

The kitchen:

Renovating your kitchen does not mean you have to replace the entire setup – even the simplest changes can make a huge difference:

- Replacing cupboard doors or painting / varnishing existing kitchen cupboards is a great way to change the look and feel in this area. 

- Replacing the cupboard door handles is also a subtle way of incorporating change into your kitchen.

- New floor tiles and a new coat of paint could also make a big difference in the kitchen.

- If you have some money to spend and your kitchen is spacious enough, opt for a redesign with lots of modern features like a work station in the centre of the kitchen.  

The bathroom:

Renovating your bathroom can be very expensive but the new look and feel will most definitely add some pizzazz to your home:

- Replacing floor and wall tiles or painting the existing tiles can make a bathroom look brand new and completely different.

- Replacing taps and sanitary ware with new and modern designs is always a good idea – just remember that this could be quite costly depending on how many items need to be replaced. 

- Replacing an old bathroom cabinet with a big modern mirror and finding some other means of storage is also a wonderful idea.

Other suggestions: 

The experts at RealNet suggests: “Other smart projects to consider now are improvements that will cut energy costs – such as roof insulation, solar power systems and heat pumps – and conserve water. However all renovations are best undertaken when you are planning to stay in your home for at least another five years. If you’re going to add on an extra living room or create a great new entertainment space outdoors, the idea should not be to do so for the next owners of your home, but so that you can enjoy the home you already love even more.” 

Useful DIY-tip: If you want to replace broken tiles, try the following – cover the specific tile with a cloth. Set your iron on medium and iron over the cloth. The heat will make the tile come loose!  

Now it is time for you to decide if you should stay or go – and whatever your decision, enjoy it! House hunting and renovating are equally exciting and fun.