Understanding property valuations
A home is more than just a place to live – it’s a valuable investment.
Understanding your current property value is essential, whether for future planning or even adjusting insurance.
Although the phrase “valuation” is commonly used when talking about your home’s listing price, this is technically not always accurate. Because municipalities, insurers, and banks have formal, legal frameworks for determining a home’s value, the people who conduct the valuations on their behalf must be registered with the South African Council for the Property Valuers Profession (SACPVP).
If somebody is not registered, they cannot provide an official valuation. Instead, a comparative market analysis (CMA) is typically what a real estate agent provides. Some real estate agents still choose to be registered with the SACPVP so that they can provide an official valuation.
In a CMA, statistics are gathered from various sources to determine the average price per square metre of properties in the area. The unique features of the property are then factored in – the more desirable the features, the higher the asking price will be.
Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett suggests that, for the best chance of securing a sale at full asking price, homeowners should always use a real estate professional who can provide an accurate assessment of the property’s value, instead of attempting to determine an asking price on their own.
“While homeowners can browse similar listings online to determine the average asking price of comparable homes in the area, this method is not always reliable, as the initial asking price can differ significantly from the final selling price,” Goslett warns.
“This is important because a correctly priced home is more likely to be sold within the shortest possible timeframe. Buyers often assume that the seller will be more desperate to sell if the home has been on the market for months on end and will then approach the seller with low-ball offers,” he advises.
While it is possible for homeowners to get a rough idea of what their property could be worth by reviewing information that is widely available online, the most accurate way to determine a home’s value is still to involve a real estate professional.
“Whether you’re planning for the future or just plain curious, remember this: knowing your home’s true market value is like holding the keys to opportunity,” Goslett concludes.
Writer: Kayla Ferguson
