With necessities becoming more expensive and the cost of living rising at every turn, is it a good decision to make additions to your home or are you better off just leaving it the way it is and eventually putting it on the market?
While there is nothing wrong with making changes to your home to improve its original state and structure, extensive changes don’t always mean an exponential increase in home value when put up for sale. In the same breath, some owners know the home’s worth and would rarely budge on the asking price.
To put it into perspective somewhat, picture a student needing a vehicle to travel to and from college. It needs to be economical and light on fuel, roughly the same scenario as a family of 3 needing only a 2 bedroom home. The student identifies an ideal car, but it has unnecessary features like a sound system and bigger wheels, for example. Even though the student would love the extras, daily driving can be done without it. Translated, a small family of 3 can do without a kitchen extension or added maintenance like a pool.
In some cases, the amount of money spent on housing additions won’t necessarily increase the home’s value, and you might never see the spent capital. Some homes are traditional and worth more in their original state which can prove a deciding factor for the potential buyers in whether or not a sale will be pushed through.
Factors to consider
Another decisive factor is the location. People would much rather buy a home that needs work in a high-value area instead of a fully renovated one with all the bells and whistles in a lower-valued one. Houses can continuously be improved over time, but the area will always stay the same.
A residential real estate appraiser is the best possible way to get an accurate value for your home. In this way, they will be able to point you in the right direction if you are thinking of making those upgrades to your home and where a suitable area would be.
Weigh up your options and consider all the contributing factors like inflation rates and property market value when thinking of making changes or simply looking into purchasing a new home. Change is always good, but before doing so, thorough planning and the idea of what you want to do is vital.
Now that you’ve got the knowledge, it’s time to shop! Head to gumtree.co.za or your Gumtree app (click for Apple & Android) and don’t forget to use your location settings to find local service information close to home.