Property Valuations and What You Need to Know

One of our regular Networking Daisies, Jennifer Cherry-Cunnington, from Complete Coastal Properties recently shared with us how important valuations are for property owners, and we felt it was worth sharing in a blog post. 

Valuations are free and take place at the convenience of the property owner.  It’s important to note that valuations are not just for selling the property; it’s about understanding the value of your asset and the benefits thereof.  

LOCATION:

Location is the biggest factor in a property valuation with views, nearby attractions and the safety of the area all playing an important role.  Property values vary from one area to another and this often depends on the proximity to amenities, the general appearance of an area and access or close proximity to busy highways.

ABOUT THE VALUATION:

When we do a valuation of a property, we research and review the prices at which other similar-sized homes in Big Bay have been sold for and we also consider the price at which the property-being-valued was last sold for.   Advertisements for properties on sale in an area can be misleading as properties often sell for way less than the advertised price.

PROPERTY MARKET:

It is extremely important to consider the current property market when preparing a valuation on a property.  As we mentioned previously, the perceived value of a property is not necessarily the actual selling price and there are various factors that play a role in this process. 

South Africa has been experiencing a buyers’ market, due to the record low interest rates but this is now changing, as a result of the interest rate hikes. 

What this means is that there are too few properties listed for sale, however there are plenty of buyers ready to purchase. This low supply, in a market of high demand, means that buyers have to fiercely compete with one another for a limited number of homes and therefore sellers are able to attract high property prices.

THE CONDITION OF THE PROPERTY:

A well-maintained home stands out from the other properties currently on the market and this creates a better impression on buyers.  The location of the house on the property also affects the valuation as does the size of the erf, the number of bedrooms and bathrooms, even the kitchen layout. 

Other factors that influence the valuation include the age of the home, the state of any garden, aesthetic elements such as flooring, furnishings, built-in-cupboards, etc.  If the property requires work (e.g. repairs, painting, garden work), the valuation will be downwardly affected by that.

HIRE A PROPERTY CONSULTANT

It’s always best to go to a professional when wanting a valuation as they are equipped to provide a Comparative Market Analysis (CMA) which takes into account the current status of the market along with the value and selling price of other properties in the area.

Jen and her partner, Jacqui, “eat-sleep-and-breathe” property so have an intuitive sense of the factors that play a role in property valuation. 

Contact them now if you have a property in Big Bay that you would like valued or if you have any queries about property on the West Coast and follow their page to get up-to-date information about the property market.  https://web.facebook.com/JaxJenCompleteCoastProperties

Jennifer: 0826014520, jennifer@completecoast.com 

Jacqui:  082 412 0050, jacqui@completecoast.com

Bye for now.

Michelle Longman

Cuppa Daisies | Networking Daisies