What factors influence my home’s worth?

There are several factors at play that affect a home’s resale value. Understanding these factors can help buyers and sellers make informed decisions, leading to more profitable outcomes.

Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa explains that while some factors are out of an owner’s control—like market conditions and unplanned changes to the immediate surroundings—other factors can be improved upon to help boost or maintain property value. “Things like regular maintenance and repairs and clever home staging can all impact the home’s selling price,” he notes.

To help buyers and sellers understand what they have control over and what they don’t, RE/MAX of Southern Africa explains some of the leading factors that can affect property values…

Market conditions
Currently, South Africa’s housing market can largely be described as muted, with annual property inflation sitting at around 2.29%, according to Lightstone Property’s latest report. Interest rate forecasts do not look promising, meaning buyer activity will likely remain low. These overarching market factors can play a role in determining a property’s worth.

“While there is nothing a buyer or seller can do to change the market conditions, their reaction to the market conditions can impact their bottom line. For example, choosing to overprice a home in a down market will often lead to a lower selling price than if the owner listed the home at a more realistic price at the start,” says Goslett.

Location, Location, Location
Where a property is situated has arguably the most significant impact on a home’s resale value. For example, while the national average for house price inflation is 2.29%, house price inflation in the Western Cape is an outlier at 4.9%. This plays out on a suburb level too.

“There is nothing a seller can do about the home’s location once they own the property. That’s why it is important to know the market trends within a specific suburb and to find out if there are any plans to develop or change the area before signing an offer to purchase,” Goslett recommends.

Specifics of the home
The size of your home, including the number of bedrooms and bathrooms, as well as its overall layout and floor plan, can affect its value. Larger homes or those with functional layouts often command higher prices. Well-maintained properties with modern amenities will also typically be worth more.

“The prices of similar homes in your area can provide insight into your home’s value. The market value of your property will then vary depending on how similar or unique your property is in relation to other homes. The more uniquely desirable your home is, the better your chances are to sell for a higher price,” says Goslett.

Of course, the best way to learn more about the factors affecting your home is to speak to a local agent for insights and guidance. “If you are a buyer, chatting to a real estate agent can help you make more informed decisions regarding your purchase. If you are a seller, working with a real estate agent from a reputable brand can help you see your home reach its full potential and sell for its full market value,” he concludes.

Writer: Kayla Ferguson