When you’re thinking about buying or selling a property, you need to have all the facts so that you can make an informed decision. And the facts need to be come from the best possible data sources.

What information goes into a property valuation report?

First of all, a property valuation report needs to include information about the property itself. Where it is located, what kind of property it is, how old it is, what condition it is in, what it’s used for, and what facilities it includes, among other things. It will also include a sales history for the particular property, and (of course) a map of its location.

Next, it will contain information about the neighourhood, nearby neighbourhoods, and sales details about similar properties in the area.

Who can create a property valuation report?

Historically, both buyers and sellers have relied on different professionals for these reports. Banks, estate agents, and independent property valuations experts have all played this role for their clients.

As we saw last week, a bank might be overly cautious in its estimation of the properties worth, in order to protect itself against a dip in the economy, or a forced sale due to foreclosure on the property.

On the other hand, an estate agent might inflate the value of the property in order to secure the mandate, or try to achieve a bigger commission.

An independent professional property valuations expert is impartial. They have the experience and knowledge to provide an extremely accurate assessment of a property’s worth. They take into account both the unique particulars of the property in question, as well as considering the recent sales history of the area. They also have sophisticated market analysis tools, which help them estimate what the market will bear in terms of price. And their independent status allows them to consider the bank’s more conservative lending policies too – and make the most precise assessment based on all of these factors.

A reliable track record means fair negotiations

An Independent Valuation Report provides an objective and realistic assessment of a property’s worth.

What is in the Valuation Report?

Property valuation reports are broken down into the following sections:

Owner Details

The details of the current owner as registered in the South African Deeds Registry. (Please let us know if you’d prefer these to be kept confidential.)

Property Details

  • Title Deed Number
  • Erf / Unit Details (as registered in the South African Deeds Registry)
  • Erf / Unit Size
  • Street Address
  • GPS Coordinates (usually)
  • Maps and photographs (where available) – these show the physical location of the property and surround properties and areas.

Valuation Details

  • The property’s most recent sales date, and the price it achieved.
  • Estimated value – this is a statistically-based estimate of the value of the property. We base our estimated on information gathered from banks, the Deeds Office, the Surveyor General, and a number of related sources
  • Anticipated highest and lowest values – the statistics-based upper and lower value limits within which we expect the property to transact. In other words: the expected potential highest and lowest likely sales prices.
  • We also include a statistical likelihood to show the extent to which we believe the valuation to be fair and accurate, based on research and experience.

Municipal Valuation Details (where available)

  • Assessed Rates Value – including date of valuation
  • Zoning / Usage of the property

Comparable Sales

  • This is a table which details 20 of the most recent sales of similar properties in a similar area. It usually includes properties with a similar sale in process.

Accurate, reliable property valuations are the basis of fair, successful property transactions. And the best place to get them is from a professional team with a solid track record. A team like The Property Partnership.

If you need assistance with an accurate property valuation of your property, call one of our specialised team on 0860 999 440 or find out more at www.property-partnership.co.za.