Your home is the single biggest investment in property families usually make, and as such a home property valuation has some considerable benefits if undergone by the right professionals.

These professionals come in the form of professional Chartered surveyors and valuers, from bodies such as: The South African Council for Property Valuers Profession and The South African Institute of Valuers, as well as various international bodies for Chartered Surveyors such as the Royal Institute of Chartered Surveyors. The value usually sought is the home’s market value and factors that are taken into consideration are recent sales, details specific to your home, price trends, site improvements and economic conditions influencing the housing market and spending power.

Home property valuations undertaken by such professionals will make for accuracy and up-to-date market values when opting for a home valuation, but what are the benefits of doing so?

  • Selling of a home: You may wish to sell your house at some point or are in the process of doing so. In this case, a property valuation provides an estimation of your home’s current, realistic worth in the market for sale purposes.
  • Municipal Objection Process: By having a current value at hand in the form of a valuation report set up by a certified valuer, you are in the position to object or dispute a municipal valuation of your site. The Municipal Property Rates Act of 2004 calls for a market valuation to determine the rates payable by a property within a municipality. In order to lodge a successful objection to the values determined, you require a valuation report. This typically consists of a full inspection, market research and municipal information that meet the requirements and principles of the bodies mentioned.
  • Rental of your property: A home property valuation will further aid you when determining a fair, economically competitive rate to ask when seeking a tenant or regularly updating a price. While the housing market will not always reflect inflation-related economic conditions for which you need to provide in the price you ask, it provides a basic idea of what you could get out of the property if not in the form of a monthly lease fee.
  • Adhering to legal and negotiation requirements: Whether for insurance valuations or legal aspects of a sale or lease contract, there are cases in which a valuation is required.
  • Replacement cost values: Body corporate, for example, should state these correctly to avoid any losses due to averaging. Replacement costs of assets are recommended to be updated every three years.
  • Accurate values: if you are in the business of investing in residential property.

Therefore, a valuation of your property—whether residential or commercial—should be undertaken regularly, depending on your requirements. When it comes to valuation of assets such as securities, another important question to ask is: What is valuation analysis? This is the process of comparing an assets value to a historical context and other similar assets to find the best investments—another way of determining the value to attach to something. An important note in the case of home and other property valuations is that a price may not necessarily represent a property’s market value, but the closer price and value are to each other the better.

Please do not hesitate to contact us for more information today!