Property Valuations: the importance of knowing what your property is worth
Category Blog
For the average person, the most valuable asset they might attain during their lifetime will be their home. Invariably, when there are times of change or trouble, thoughts may turn to selling the family home; circumstances such as retirement, transfer, downsizing, financial stress, etc, will all play a role in that keenly emotional moment when you have to move from a familiar and loved environment.
Therefore keeping track of what this important asset is worth at any given moment, is crucial to making decisions. It also helps to put the value of your home and current fluctuations in financial markets, both local and international, into perspective. Your home value is rarely about what you think it is worth, but subtly and intricately bound with what is happening nationally, globally, and in the general sentiment of business.
So, before you take that step to sell, it's a good idea to ask a professional in the market, to value your property and give you a fair and honest idea of what you might be able to ask and achieve as a selling price. But there are many factors that affect valuations and the ultimate success of attaining your desired price.
The salient factors affecting valuations
Location: With property valuation it is important to recognise the current property climate. Location is the number one factor that determines your home's value. Property values vary from suburb to suburb, and even vary within suburbs depending on proximity to amenities and the general appearance of an area, such as a tree-lined avenue as opposed to a busy main road. Views, security, modernity and maintenance all play a part in the look and feel of your home.
A buyer's or seller's market: Even an accurate and fair valuation may not be what the buyer is willing to pay. If it's a buyer's market then the buyer has the upper hand, able to pick and choose from not only a spectrum of properties but also haggle over the price to his or her advantage. A seller's market means that property is scarce and sought-after and buyers may be willing to pay your price to ensure they obtain an asset in your area. That's why it's important to keep up to date with the value of your property because this value can change very quickly.
Size of the property: If people can afford it they are often willing to pay more to obtain breathing space and greater privacy. Larger properties are usually in a neighbourhood of like sizes, and this type of lifestyle can be attractive. However, while the larger the property the more valuable it may be, there has been a notable swing to secure estates and developments where space is sacrificed for security. 'Lockup and Go' are still popular choices for ease of maintenance and a freer lifestyle.
Rooms and amenities: Along with property size, comes the size of the actual house. For a family the usual drawcard is no less than 3 bedrooms. Likewise more than one bathroom is a big plus. Garages, especially double garages and attractively developed outdoor entertainment areas and built-in braais are very persuasive elements. Increasingly, workspaces are in demand, studies, office space with a 'work-from-home' feel, are strong motivators.
Space and flow: Open-plan is today's preferred lifestyle. Kitchens open to the living and dining spaces are very popular, creating ease of connection and interaction with family and guests. Sometimes these changes are not too difficult to effect in an old home. Before you spend the renovation money though, get a valuation from a professional - they may be able to advise what is worth your while and what may be over-capitalisation.
Technology: The modern outlook highly values automated systems within a home. Security, solar heating, bore holes, recycling systems, etc, all add value in the modern sense. Built-in charger points, well-positioned power outlets, and fibre installation are all useful in attracting buyers.
Valuations are required for:
- buying or selling a property
- tax purposes with regard to municipal tax, wealth tax, business tax, annual tax returns
- determining rental values
- taking out a loan against the value of a property
- insurance purposes
The true value of experts
Keeping up to date with valuation of your home makes selling, when the time comes, a much smoother and less stressful process. That's why it's best to choose a reputable estate agent to help you with the process. When a qualified valuer evaluates your property, it will help you in the following ways:
- Ensuring that you price your house in the best possible way with regard to both the realistic value of the property, and the most likely price at which the house will sell.
- Undertaking research with regards to the area and the latest prices of sold properties in the area, and the general convenience of amenities in the area.
- Measuring up the size and facilities of your house, and making sure that every possible angle informs the best price you can ask, and of course the best price you can expect to receive.
- Asking as many questions as possible to garner information with regard to maintenance updates, refurbishments, legal aspects, special features that enhance your home or make it unique, and any problems that should be mentioned such as leaks or rising damp.
- Answering all your questions in full when you query how the value has been arrived at, or how the marketing of your home will be effected; time scales; viewing appointments; small changes that may influence a sale; what buyers are currently looking for, etc. Selling your home is a partnership with a good agent, a two-way street whereby your personal participation and collaboration is respected and constructively applied, together with the agent's sound knowledge and advice.
Leapfrog Property Group
Leapfrog Property Group offers a fresh and innovative approach to buying, selling, renting and property investments, ensuring the best property deals for clients across South Africa. Our agents are qualified, trained, experienced; our approach bold and spirited, driven by heart, generosity and honesty. It is our mission to advise, eliminate obstacles and save you unnecessary expense. Trust is our watchword. And value our motto. Armed with our combined credentials, we are the bright face of excellence in the South African market.
Author: Leapfrog Property Group
