What to know about property valuation and how we can help you
Properties are often the most valuable and largest assets one can own – but understanding precisely what this value entails is important. Homeowners sometimes assume that their home retains the same value it once had for many years after purchase, but rarely is this the case. There are countless factors that work to decrease or increase the value of properties, which is why a property valuation is so important. It is vital when selling a home because listing the residence on the market at the right value makes for a fair transaction (for both buyer and seller). It ensures that every unique feature and addition to the home is taken into account, which means a successful sale is more likely.
A key step in the negotiation process
An accurate property valuation is the greatest leverage you have during the buying and selling process. It leaves no stone unturned when it comes to where your home should fall in the market. It removes the guesswork involved in setting a fair price as it is a realistic estimation of the current investment value of the home. An external property valuation by a real estate agent can also be important while objecting to or disputing a municipal valuation of your site. Even landlords who want to rent out their properties can benefit from the service – it allows them to set a fair asking rate for monthly rent that also reflects the current inflation-related economic environment. Valuations should be undertaken regularly as they have other benefits too, especially with regards to the insurance and legal aspects of a sale or rental, or in determining the replacement costs of assets for sectional titles with body corporates.
The main factors that get assessed
While the current condition of the home is important, many sellers and landlords are surprised to learn that there is more to property valuation than the physical state of the property. Often, the biggest determining factor is the location of the home. Location drives market value, always. If an area has superb infrastructure, upmarket homes, gorgeous views, great schools and hospitals, and ample attractions, even a mediocre home situated there will sell for more than it is worth. Valuing your home will thus entail looking at the value of other nearby homes of a similar size, as well as the previous selling price of the residence.
The market value of a house or apartment also depends on whether we are currently in a buyer’s or seller’s market – meaning circumstances that favour either buyers or sellers financially. In periods of low-interest rates where supply exceeds demand, it becomes a buyer’s market. The value of a home may decrease in these circumstances, as sellers must lower their sale price to compete in a diminished market.
Why hire a professional real estate agent?
By providing a CMA (Comparative Market Analysis), professional estate agents offer an extensive property valuation that takes into account market forces and location. They can also assist with setting a great price for the sale and helping you seal the deal with the right kind of buyer. This is vital in the luxury property market, as in-depth knowledge of locations and home features is important here.
Fine & Country South Africa can assist you
We at Fine & Country South Africa can help you with a hassle-free property valuation. We simplify the process by visiting you on-site, doing it virtually via video call, or even telephonically – and you can choose a time and day that suits you best. This home appraisal is a free, no-obligation service that you can book today. To find out more about this exceptional service we offer, or to book your appointment with us, click here or contact us via our online form.