4 Feb 2014
“It goes without saying that it is far easier to sell a property that is in tip-top condition and visually pleasing,” says Adrian Goslett, CEO of RE/MAX of Southern Africa Goslett. “When wanting to sell their home, sellers will generally need to spend a bit of time and money on preparing the home and ensuring that the cosmetics of the property are up to standard. These preparations will normally include a fresh coat of paint and perhaps some spring cleaning. Often it may also require that some easily fixed defects are repaired and that everything is in working order. However, to what extent do sellers need to repair their home before placing it on the market?”
Structural defects that are costly to fix, such as replacing the roof, pose a real challenge to homeowners who want to sell, he says. “Every home is likely to have its fair share of defects, some of which will be obvious to spot, while others could be hidden. Sellers are mistaken if they think that potential buyers will assume that the only defects in the home are the ones they can see. In fact, more often than not, serious buyers will have the property inspected by a professional company before signing on the bottom line. There are very few buyers who will purchase a home with the assumption that everything that is not visible must be in working order.”
According to Goslett, homeowners should ideally have the home inspected themselves before they put it on the market so that they are aware of any issues or structural defects that need to be addressed. “Sellers are morally obliged to inform the estate agent marketing their property and/or the seller, of any known defects. Once the property has been inspected and a quote obtained for any necessary repairs, homeowners need to ask themselves whether they will come out better by repairing the defects or dropping their asking price.”
If, for example, the defects would cost R50 000 to repair, but this would result in the sellers getting their asking price rather than dropping it by R100 000 or more, the repair will be well worth it, but each instance will have to be assessed individually, he says.
“The downside for the seller who decides to do the repairs is that these could take a long time and delay the whole process of selling the property. This may not be an issue for sellers who are not in any particular rush, but it may be a massive issue for sellers who have committed to another property and need their home sold as quickly as possible. “And another instance in which it may be better for the buyer to do the repairs or changes is when the fix could be a matter of taste, such as the colour of tiles used or design of the deck. If repairs or cosmetic enhancements could be done in a variety of different ways, the buyers may want the option of doing things their way. “Either way, the most important thing is that all parties involved in the sale are happy and agree to the terms and conditions before any contracts are signed.”