If your property is located near or next to an informal settlement, a busy freeway, or even a cellphone mast, you may have a difficult 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 declining.
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 for, 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
- Water features, pools and high-maintenance 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 12 of the most common factors 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.