Tips to Maximise Your Home's Profit Potential

For most people buying a home will be the largest financial investment they will ever make.  It is possibly going to be their greatest return on investment over the long term.  It is also perhaps one of the few investments that the owner can enjoy and make use of while it appreciates in value.  For these reasons it is important for homeowners to put a lot of time and consideration into the inevitable possibility that they will one day sell their home, says Adrian Goslett, CEO of RE/MAX of Southern Africa.  "While it does happen, very few buyers will purchase a home and stay in that same property for the rest of their lives.  Although property is a long-term investment, a buyer should always buy a home with the consideration that in reality they will eventually sell it.  What ever the time frame, the process of buying and selling should remain the same, with the primary objective being to maximise the return on the investment at the realisation of the sale," says Mr. Goslett.

He says that in the current market, sellers who want to achieve the highest possible return on their investment will need to follow a certain formula that combines three main elements.  These elements include fair market value, an excellent marketing plan and a well presented and prepared home.  The important of a home that is priced within the correct bracket cannot be overstated, says Mr. Goslett.

Many sellers make the mistake of overpricing their property to give them room to negotiate with prospective buyers.  While this may have worked during the boom period, it does not work in a recovering market that favours buyers.  Overpricing will merely chase potential buyers away.  Statistically speaking, property sold within the first month of being on the market will sell for the seller's asking price, provided the home is marketed a fair market value.  Thereafter the chance of the property being sold for the initial asking price becomes progressively less likely, with statistics indicating that houses that have been on the market for 24 weeks or more sold for as much as 10% less than the original asking price.

Homeowners must also ensure that their home is well maintained and cared for while they live there so that when they decide to sell, the home is ready and looking its best without needing costly upgrades just before sale.  Mr. Goslett says that homeowners who keep their home updated and organised throughout the years will improve the way they live in their homes and ultimately add to the home's value.

'TWO ROOMS THAT HELP SELL A HOME 

ARE THE KITCHEN AND BATHROOM'

"First impressions and aesthetic appeal are important when it comes to a property's resale value."  The outside of the property will be just as important as the inside, so sellers should make sure that their home has curb appeal by maintaining their lawn and landscaping.  A newly painted home will have a fresh look that will add to the value and interest of the property.  Always keep paint colours neutral and current," he says.

"Two rooms in particular that help sell a home are the kitchen and bathroom.  They do not necessarily have to be high-end or luxurious.  Just updated, clean and well designed enough.  The investment made in these areas of the home can definitely translate into the difference between a speedy and profitable sale, as opposed to a listing that languishes on the market."

In closing, Mr. Goslett says that if a seller follows these guidelines, they will have the best possible chance of realising their home's resale potential.  "Property remains a sold asset class that continues to perform well over the longer term.  "However, homeowners do have to play their part to ensure that that property reaches its full potential," he says.