For most people, a home is one of their largest financial assets. Maximising the return on investment upon selling the home can provide additional funds for future investments, such as purchasing a new home or growing savings. To maximise profit, it is important to realise that the process typically begins well before the home is officially listed for sale.
When selling a home, Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa explains that homeowners should aim not only to recover their initial costs but also gain a profit from the sale. “To achieve this, smart financial decisions need to be made throughout homeownership, such as strategic upgrades and maintenance that add value to the property,” he notes.
He adds that homeowners in desirable suburbs often benefit from natural appreciation in property values over time, which can yield a satisfactory return on investment. “However, those who invest in regular maintenance and upgrades significantly enhance their chances of achieving an even higher return on their investment,” says Goslett.
For those who are about to put their home on the market, Goslett highlights a few things the homeowner could try to give them a better chance of securing the highest possible sales price.
Enhance curb appeal
A well-maintained lawn, fresh paint, and a clean driveway are simple yet effective ways to create a lasting impression.Neutralise the space
Removing personal items and decluttering your space allows potential buyers to imagine their own belongings in the home.Price it carefully
Overpricing can lead to your home sitting on the market for too long, while under-pricing can leave money on the table.Strategic renovations
Focus on value-adding renovations such as kitchen and bathroom updates and avoid overcapitalising on upgrades that exceed the market value of similar homes in your area.
Stage the home
Staging can highlight the best features of your home and create a more inviting, cohesive look that appeals to a wider audience.
Apart from these strategies, partnering with a knowledgeable real estate agent can provide the seller with expert advice on pricing the home competitively, marketing it to the right audience, and negotiating the best possible deal. "Partnering with a RE/MAX agent gives sellers access to extensive market insights, a global network, and powerful marketing tools, all of which help maximise ROI," Goslett concludes.
