Property valuations: are they worth it?
When selling your property, choosing the right price tag is one of the most important decisions you will make. Because buyers tend to shop within a specific price bracket, it's key to price right from the start. A good price will drive interest, give you buyer options, and get you from "sale" to "sold" quickly. This is where correctly valuing your property for the market comes into play. Jack Russell Estates uncovers the benefits and the process of property valuations.
What is a property valuation?
A property valuation provides an indication of the best selling price of your property if it were to be listed on the market at that time. To make an accurate assessment, a property professional will evaluate the property's offering, area, and conduct a comparative market analysis. This looks at the strength of the local market, demand and supply forces, and the sale of other similar properties in the area.
Sellers should be aware that this market-related property valuation is different from a municipal evaluation. The municipal evaluation is done on a mass scale and automated based on semi-recent sales statistics. As such, it doesn't provide an accurate assessment, reflecting your home improvements, alterations, changes in the market, or neighbourhood development. A market-related valuation done by an area expert will always be the best pricing for your property listing.
The benefits of a property valuation
A correct valuation of your property has several perks. Firstly, it can help pinpoint the strengths and weaknesses of your property. This will come in handy when marketing your property or looking at ways to upgrade it to increase your asking price.
Next, the property valuation can help you time the sale of your property for maximum profit. According to the FNB Property Barometer November 2020, it takes more than 10 weeks to sell residential property in South Africa. Market conditions can impact your sale so a valuation will keep you in the know of the most favourable time to list your property.
Because a valuation gives a fair assessment of the price, you will have a greater chance of selling. An overpriced property can turn away prospective buyers, leaving your house sitting on the market. A lengthy period could raise flags for buyers, making your chances for success slimmer as time passes.
In some cases, a valuation is also a compulsory requirement for insurance valuations or as a legal requirement of the sales contract. Investors may also request a valuation to verify the price of their potential acquisition.
As a homeowner, a valuation conducted by a certified valuer can even save you money. The Municipal Property Rates Act of 2004 requires a market valuation to determine the rates you have to pay to the municipality. If you believe your property has been overpriced and is inflating your rates, you will need a valuation report to lodge a successful objection to the value provided by the municipality.
Factors agents take when valuing your property
You have a sentimental attachment to your property. During a property valuation, your agent can step back and provide an objective view of its value. Here are some factors taken into consideration when valuing your home:
- Your property: This includes size, condition, fixtures and finishes, security features, number of rooms, age, layout, and sought-after features that will set your property apart from others on the market.
- Your location: The old saying "location, location, location" truly does matter when it comes to your property's value. Being close to popular amenities like schools, shops, places of work, transport routes, parks, and recreational facilities will have a positive impact on your asking price.
- Market conditions: A buyer's market and seller's market influences your asking price. When there's a lot of properties available for sale, people have their choice. This drives down the asking price. Other factors such as changes in the repo rate, transfer duty, and FLISP can also make buying more attractive.
- Competition: How much a buyer is willing to pay will also influence the value of your property. If your property is priced too high in comparison to similar properties in the area, you may lose interest from potential buyers. Your agent should price your property competitively.
These factors can give you an overview of how desirable your home will be on the market. However, it is in your best interest to seek the help of a trained and experienced property professional to get a true measure of your property's value.
How do you get a property valuation?
To get a property valuation, it's as simple as contacting a property professional and scheduling a home visit. Jack Russell Estates provides a free, no-obligation, market-related evaluation by expert real estate specialists. These specialists are familiar with the area, have up to date sales information, and understand how your property's size, condition, and features compare to others in your area. Factoring in demand and market conditions, Jack Russell Estates ensures you get a comprehensive assessment, meeting industry standards.
To get the right price from the get-go, contact Jack Russell Estates today. If you need a second opinion, you are always welcome to contact the company so you can have peace of mind that you're showcasing your property at the right price.