What is your home really worth?
Your Property Professional uses a statistical approach to determine the probable value and will use programmes like Lightstone, SAPTG (South African Property Transfer Guide), CMA Info and Windeed. These programmes use data obtained from the Deeds Office and are invaluable sources of factual historical data; meaning that one can check the prices that were obtained for properties in the same area as the subject property.
However, the astute Property Professional will never rely only on the information so obtained to value a property as current market conditions and competing properties must be taken into consideration. Factors like supply and demand, interest rates and the economy in general, political stability and environmental issues all play a vital role in determining current market value.
At the end of the day, the real 'valuer' is the Buyer, and it is often said that 'market value is what a willing and able buyer would be willing to pay for the property in today's market'. It is true that Buyers always buy by comparison - comparing apples with apples, so to speak. They will carefully consider all their options by looking at several houses in the neighbourhood, comparing features and prices; they will not pay more for a property if they can get another similar one for less.
The Property Professional will therefore take several factors into consideration before presenting a valuation:
- Prices of competing properties currently on the market similar in size and features.
- Prices of properties sold in the same area over the past 6 - 12 months
- Accommodation offered
- Features, eg. Pool, pantry, home office, etc
- Location - neighbourhood safety and amenities
- Condition of the property
- Improvements made that benefits the property
- Curb appeal
- Age of the property
- Market conditions and price trends
The cooperation of the Seller is vital in the valuation process. He must supply the rates and taxes account so that the Property Professional can verify the legal description i.e. the erf number as well as the property size. Honesty regarding possible defects will go a long way in lessening problems at a later stage.
The valuation of real estate benefits from unbiased opinions, unclouded by such obstacles as sentimentality or the hope of personal gain. Sellers are more likely to get what their property is worth; buyers are less likely to waste money; lenders avoid making bad loans; family members and business partners are more likely to divide assets evenly - if they have an unbiased opinion of the value of a property. Without a trustworthy opinion of value, these same people could only base their decisions on hearsay or guesswork.
To receive a comparative market analysis and indication of the value of your property contact your nearest Huizemark office.
Author: Adrie Barnard