If you own a home, there are many reasons why you would want a professional valuation on your residential property. Perhaps you need it for insurance purposes. Maybe there’s a rates dispute. Or it could be for tax reasons. But most often, you’re about to sell your property. You need a valuation report to find out its market value.

In many ways, it’s easier set a firm value on commercial property. A lot is determined from the balance sheet.

But residential properties tend to come with their own set of rules.

International Valuation Standards defines market value as “the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s-length transaction …”

In other words: market value is what a buyer is willing to pay.

Research suggests that it only takes a buyer a matter of minutes to decide if they like a property or not. Most of this will be based on what the buyer prefers. But there are a host of other factors which come into play. And while we can’t know what works (and what doesn’t) for every single person, we can take care of the things we can measure.

Residential market valuations are based on both external and internal factors.

We will focus on some of the external factors.


Probably the single biggest aspect of a property’s value lies in its location. A wealthy area, good schools, upmarket retail outlets and open spaces all add to the plus column. But this can swing the other way too. Noisy freeways, railways, airports or other nuisances will deter buyers. This then brings the value down.

Under the same umbrella, the general condition of the neighbourhood can potentially boost or drop the property value.

Tip: If you are a homeowner and want to make sure that your neighbour’s unkempt garden doesn’t impact your property value, then think about forming a homeowners association. A small levy and a little work can bring up the tone of the whole neighbourhood.

Property Size

A small house is a small house. The floor area of a property is a major factor determining its value. The same is true of the land size. Interestingly, a large tract of land doesn’t automatically get an extra zero. Land usage can be impacted by areas carved up for conservancy – or being protected as open space areas. This leads us to the next point.


Your zoning will dictate your property usage. Most residential property is zoned as such. But some of the other categories may include rural residential or special residential. These may allow for the building of more structures on the land. This plays a part in determining its value. The more you can do with a piece of land, the more it is worth.


Roads, sewage, telecommunications, power supplies and other essential services also play their role. Some outlying areas or newly developed areas may still need these services to be put in place. Or some of these may be in a state of disrepair on an older neighbourhood.


A lack of parking can prove a real problem for some properties. However, in city centres where parking is at a premium, secure off-street parking can add tens of thousands to the market value. Of course, in built-up areas there may be very little a homeowner can do about this.

Other elements which affect the bottom line can include:

  • The popularity of the architectural style of the property
  • Proposed development or zoning of adjoining properties
  • Supply and demand: a small house in a sought-after location can be worth more than a big house on the other side of nowhere.
  • Crime stats for the also play a role – especially in South Africa.

So when looking for a valuation report on your residential property, you need a team who can take all of these factors into account, and give an accurate assessment. It’s always best to call in the professionals. Make use of our experience and in-depth knowledge of the factors that affect the value of your residential property.

Call us on 0860 999 440 or visit www.property-partnership.co.za for more information on our full range of services.