Here’s What Adds Real Value To A Property
There are a number of factors, including location, overall state of the property and prevailing market conditions, that ultimately determine the value.
30/01/2025
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.