Residential Property Valuations
Whether a residential valuation is required for vacant land, agricultural holding, full title or a sectional title property, we are more than capable of determining the market value thereof, which is defined as: the estimated amount for which a property should exchange on the date of Valuation between a willing and informed purchaser and a willing and informed seller in an arm's length transaction, after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion.
What is the Valuation Process?
In addition to existing knowledge and experience, a Valuer has to research the economic environment, the property and its surrounding area in order to perform a valuation of the property. Certain legalities are also scrutinised, such as the Title to the property, zoning and municipal information. A full inspection of the house both externally and internally is performed by the Valuer in order to take note of finishes, features, accommodation, problematic areas and to ensure he has the correct extent of the floor area, in order to compare the property to comparable sales in the area.
Residential property valuations are based on the Market approach (comparable sales), i.e. the market value of the property is derived from the selling prices of other comparable properties recently sold, provided:
- Zonings must agree
- Differences between properties sold and the property to be valued must be limited to a minimum, that is the properties must be similar
- The definition of market value must be valid, that is the parties must act as “willing” sellers and buyers in the “open market”
- Conditions of sale must not be out of the ordinary
- If need be, necessary adjustments should be made to comparable properties, in terms of: quality/differences; desirability; locality; date of sale or extent of improvements, in order to make the properties as similar as possible, to that of the property being valued.