Adored by first-time buyers, downsizers, and retirees alike, small properties have and will always be an attractive real estate offering. But which precise factors impact your small home’s value on the market? If you’re looking to sell, rent out, or simply improve your property’s worth, this is an important question to ask. And we have the answer!
Being part of a well-maintained, safe, and vibrant neighbourhood will often add the most property value to a home. Being close to amenities like good schools, shopping centres, healthcare facilities, and special attractions will also increase the appeal of a home regardless of its size. Micro and studio apartments in semigrant hotspots like Cape Town, for example, have become sought-after despite their small size and it’s primarily because of the area’s appeal.
This factor also relates to your position within your neighbourhood. Your small home will benefit from having better views, a better orientation, and greater accessibility to highways compared to surrounding properties.
Big or small, your property’s value is defined by the rooms and facilities it has. More bedrooms don’t always add value — two to four bedrooms are more than enough for most buyers or renters. If your small home has ensuite bathrooms, entertainment areas, built-in braais, workspaces, or access to pools, clubhouses, gyms, and laundromat facilities, this will definitely enhance its appeal.
Even if your home is small, some buyers or renters may hold it in higher esteem than a larger home if it’s newer. Those built within the past 10 to 20 years need fewer repairs and maintenance and usually boast modern fittings that may be less likely to need immediate replacement.
If your small home has been well-maintained, it will need fewer repairs or renovations. Because buyers and renters appreciate an effortless investment or living experience, adding a fresh coat of paint, replacing worn or outdated fixtures and fittings, and enhancing your curb appeal can help add real value to your home.
A well-designed home that maximises all available space will help you fetch a higher price. Homes, whatever the size, benefit from having an open-plan kitchen, dining room, and entertainment areas, for example. While it may not always be possible to change up the structure of your home, you can declutter your space to make it feel more spacious.
Improvements that increase your home’s livability but also minimise the cons of a smaller home will boost its value. Consider adding extra storage space and decor choices that make your space feel bigger. Home security features, solar power, and rainwater harvesting are also attractive for making living experiences easier.
The condition of your local property market can impact your home’s pricing. Interest rates, inflation, bond approval rates, and changes in buyer or renter tastes can influence supply and demand. If you’re in a seller’s market (few properties listed for sale and lots of interest), your small property can see its value rise as buyers compete to secure their purchase.
The sale prices of similar homes that were recently sold in your area can significantly increase or decrease the market value of your small home. An experienced property practitioner can do a comparative market analysis to determine your property’s value and help you pinpoint a fair asking price. This analysis can also give you insight into the factors in play that have helped other small properties sell well and guide you on improving your home.
Looking to pinpoint the market value of your home? Seeff’s team have you covered! Our property valuations are backed by the latest data from Lightstone and a comparison market analysis. Using the latest tech innovations, we can also do a virtual valuation without needing to access your property. Get in touch to find out more.