Deciding to sell a home is a major decision, but once that decision has been made there is quite a lot of administrative and perhaps necessary maintenance work that is essential before it goes onto the market.
The presentation of a home is crucial, and with that comes the Sellers’ responsibility of being cognizant of any defects and doing the necessary repairs.
Yes, it is easy to (perhaps) ignore minor issues that seem like quirks, but Buyers may see these snags as problems that lower the value of a home or, use them as bargaining chips during the negotiation /offer process to reduce the price of the property. If there are too many noticeable repairs, Buyers may also wonder if more serious issues lurk below the surface, and that could prevent them from making a good offer.
Investing some time and effort up front to prepare your house for viewings will generally increase the likelihood of receiving offers soon after you list your home. The longer your home stays on the market, the harder it can be to sell. A pre-sale inspection would assist in ensuring all repairs necessary for the sale are handled before Buyers walk through and would also safeguard against potential problems down the line – but it is important to use a reputable home inspector. Knowing the things that can be done to prepare a house will help in unlocking an offer.
Interestingly, even though The Property Practitioners Act was implemented on 1 February 2022 where it became mandatory for a property practitioner to obtain a Disclosure Form signed by the Seller that identifies the property's condition before concluding a sales mandate, many Sellers appear to still not be aware of this priority. Some even choose not to sign. This Act was implemented to provide protection for consumers (Buyers). If this report is not in the paperwork attorneys will hold back the process while they await this document. If the Seller is married In Community of Property, both partners have to sign the agreement and disclosure form. Sellers should not try to conceal defects as this could lead to problems later and in extreme circumstances a Seller could be sued by the Buyer. This Act obliges property practitioners to obtain a ‘disclosure form’ from a Seller or Lessor before concluding a mandate, and to provide it to a purchaser or lessee before making an offer. If not obtained by the property practitioner, the property practitioner also runs the risk of being fined quite heavily, up to R 15 000 or more, for not undertaking this binding task. At the point of sale, the Purchaser also must sign the Disclosure Form.
A Seller also has to produce various certificates for a sale to be concluded and for registration of transfer to take place. These include, but are not limited to:
An Occupation Certificate or Certificate of Occupancy as it is also known. The property's blueprints, building plans, and certificates of compliance will be requested if a new occupation certificate needs to be issued. This is to certify that a building (commercial or residential) has been completed according to its approved municipal according to its approved municipal building plans along with clearance (COC) certificates.
Electrical clearance / Electric Fence clearance (freestanding properties only) / Gas clearance (if gas stoves or geysers are in the residence) and Entomology (pest/ beetle) clearance certificates are also required to be produced by the seller.
The garden and entrance area should also not be overlooked as this curb appeal is a Buyer’s first impression. Research says this can increase a home’s value by up to 17%. (Reference Thumbtack Survey 2022)
Consistently performing small, inexpensive routine home maintenance tasks will help alleviate “surprise”major repairs if and when a home is put on the market. Small increments of investment every year will require fewer major repairs and replacements (and also headaches) in the long term.
The stakes are high: a well-maintained home sells for 10% more than a home in average condition and helps to avoid costly, unexpected repairs. (Reference Thumbtack Survey 2022)
So take care of your home and it will take care of you.
This article has been compiled for general interest and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your property practitioner for specific and detailed advice. Errors and omissions excepted (E&OE)