Whether you’re planning to sell, refinance, or just win a silent competition with your neighbours, knowing how much your property’s really worth on paper can shape your future plans, from dream upgrades to retirement goals.
Why property valuation matters
- Municipal rates: Each year, when your rates increase, the new amount is based on the municipal valuation. Every five or so years, each municipality surveys every property that falls into its boundaries and assesses its value, which is based on location, land size, buildings and any other improvements to the land. When complete, the data is published in the local authority’s valuation roll.
- Financial reasons: If you are a homeowner, and you have a bond and the value of your property increases, that means that you also increase your equity in the property. This is very important if you decide that you want to refinance the property, or if you are looking for a loan for other reasons. It also helps you to plan what you will stand to make if you decide to sell your property.
- Insurance: This means that the value of your property will determine your homeowners’ insurance and how much the insurance company will pay out, if disaster strikes.
How much does a property valuation cost?
- If you have asked your estate agent for a comparative market analysis, which will evaluate similar properties in the area, what they sold for, when and/or in the current market – it is generally a free service.
- Registered valuers, however, do charge for their services and, other than for deceased estates, there is no gazetted schedule of fees. The cost of a professional property valuation will depend on the amount of work the valuer does and the value of the property. Some professionals may charge an hourly rate, so if you’re planning to get a formal valuation of your property, we suggest either you shop around and/or ask for a quotation so that you know what you’re in for. Tip: As with most professional service providers, ensure that they are properly registered, and you can do this via the South African Council for the Property Valuers Profession website.
Find out more by visiting RE/MAX.
