Harcourts Blog

The green revolution has become widely popular, and for good reason, with retail outlets offering organically grown food, businesses installing solar panels for residential purposes and a major surge to reduce wastage by on natural resources, it will continue to become a part of our everyday lives.

There is no doubt the market is under pressure. Expendable income for consumers seem to be diminishing and the overall economic climate, interest rates and ratings agencies downgrades are filtering through to the man on the street.

Despite the doom and gloom outlook FNB’s latest property barometer on residential maintenance and downgrades explains that there is only a slight weakening levels of home maintenance and downgrades.

When it comes to preparation, Olympic athletes leave no stone unturned.
Because the competition is so intense, preparing for the Olympics becomes life and death, with endless months of training, and unyielding focus. Preparing for a game of soccer down the beach with some friends – not so much.

New season's fashion isn't just for your wardrobe. The team at Resene take a look at what colours fashionable homes will be wearing over spring and summer.

Think shimmer and glitz, white with black accents, unexpected colour combinations and iridescent as well as toned-down hues. Luxe metallic finishes, whites with charcoals and earthy greys, dusky tones, and exuberant pops of bright colour are all on trend for the coming months.

When not to renovate
If your property needs repair or you’re considering a few renovation projects to get it ready for sale, there are a few things you need to consider first.

Although well-planned, cost-effective renovations can add value to a home, there is always the risk of over-capitalising. That’s why it pays to consider the types of renovations that add value and appeal to potential buyers. So, when you’re looking to sell, when shouldn’t you renovate?

Remember, renovating for your own personal use and renovating to attract a wide range of potential buyers are two different things. It all comes down to your return on investment or ROI. Basically, you’ll want to ensure the amount you invest in the renovation is less than the value you’re adding to the property, and the sale price you’re likely to achieve.

Here we explore some of the situations where we wouldn’t recommend renovating if you’re looking to maximise your sale price.

Check your margins
If your property isn’t in desperate need of repair and you’re confident you have a decent amount of equity existing in your property, renovations may not be necessary. Especially if after crunching the numbers, you’re not confident you would be increasing the sale price by that much, and remember a return on investment can never be guaranteed.

A general rule of thumb when it comes to renovating a property for profit, is to spend no more than 10% of the property’s value on the alterations. So, the first step would be to ensure you have an up-to-date valuation of your property, undertaken by a professional.

The next step would be to work out a budget, and ensure you add a buffer in case of unforeseen additional expenses. Using the 10% rule, this means a home valued at R500,000 would have a total renovation budget of R50,000. Any more than this, and you risk
over-capitalising.

Do you need a quick sale?
Most renovations take time, to plan and budget for as well as to be completed. So, if you’re looking to sell soon, renovations may not be possible. Remember too, that renovations often go over budget and can take longer than anticipated so factor all these considerations into your decision.

Who are you renovating for?
Some renovations appeal to most buyers, such as a kitchen or bathroom upgrade, but others are personal to you and your needs, taste and style and therefore won’t appeal to the largest number of potential buyers.

This can include adding extensions such as granny flats, converting bedrooms into specific-purpose rooms like a media room or library, and separating rooms by adding additional internal walls.

Who are you selling to?
This is where research is key. What is the demographic of your property’s neighbourhood? Mostly singles and couples? Mostly retirees or mostly families? Finding out who the neighbourhood is likely to attract will help you determine suitable renovations and not so suitable ones.

For instance, if your local market is likely to attract families, think carefully before adding stylish but potentially hazardous staircases, or ornate glass features. Or if your potential buyer is most likely an investor, keep renovations to a minimum as they will almost certainly have their own plans and your changes may add no value to them at all.

Ask if you’re unsure
When planning a renovation, don’t shy away from asking your local real estate sales consultant their opinion on the condition of the property, the type of buyer the home is likely to attract, what similar homes in similar condition are selling for and any renovations they would recommend. You may be surprised, if your home isn’t in need of massive renovations your sales consultant will tell you and you may save yourself a lot of hassle, time and money.

As SA continues to experience its worst drought in decades, runaway fires are taking an increasing toll on people, animals and properties around the country – and farmers and foresters are not the only ones who need to be better prepared, says Richard Gray, CEO of Harcourts Real Estate.