We all know that property buyers pay more for nice looking houses than for ugly, run-down properties. That is why many home sellers fall into the trap of spending too much on repairing and upgrading a property just before taking it to market.
If you want to get the highest possible price for your property, it would obviously help if the property were neat and inviting. Home sellers would be wise to make all minor repairs and spending a few rand on some selected major repairs before putting the house up for sale.
But be careful what you spend your repair budget on! It is no use turning your ugly duckling property into your dream home, just so you can sell it.
Don't waste money on unnecessary repairs
People's tastes can differ widely. Some repairs and home improvements you might consider valuable and desirable might just get ripped out or painted over, as soon as the new owners move into the property!
Nearly all purchase contracts used in South Africa include a "voetstoots" clause, which places the responsibility of making sure that the property is suitable for the intended purpose on buyer. The seller does, however, have a responsibility to inform the buyer of any hidden defects he/she is aware of.
The seller never knows exactly what the buyer's plans are for the property. So, you might end up spending a fortune on adding a swimming pool to the property, which the buyer simply fills up again, because he/she bought the property with the aim of demolishing the existing buildings and building an ultra modern home on the erf.
The property seller should aim to "pretty up" the property in the least expensive ways possible. This includes thoroughly cleaning the whole of the property, inside and out, removing clutter that makes the house and yard look small and uninviting, as well as giving the front of the house a neat, fresh and neutral coat of paint.
First impressions are the most important. If a property allows buyers to get out of the car, enter the front door without being put off, and start the home viewing in a positive frame of mind, the property is half sold already.
It is much easier, and often much cheaper to negotiate a price concession with an interested buyer, than it is to fix every little thing that might be "wrong" with the property.
Buyer contingency clause
A contract clause that seldom appears in real estate contracts of sale in South Africa, is the buyer contingency clause, which allows a buyer to negotiate repairs, or even back out the sale of the property, if certain defects are found during a home inspection.
The buyer contingency clause is uncommon in South Africa, mainly because the real estate agents and transferring attorneys have traditionally represented the seller's best interest. But this is something that is slowly changing, mainly because the public is becoming better informed about protecting their own interests in a contract of sale.
Repairs and selling property
Unfortunately, there is a trick to preparing a property for sale. The seller has to make the right choices, so as not to overspend on pre-sale repairs.
Exactly how much repairing and prettying the seller needs to do will depend greatly on the reigning market conditions at the time of going to market. If there are few houses on the market and many buyers, they might be willing to buy anything they can lay their hands on, at almost any price. But in a buyers market, where the properties up for sale outnumber the potential buyers, making such repairs may be the only way to sell your house!
