The Benefits of a Property Valuation
Category Sellers Guide
If you are thinking of selling your home, you may not know where to begin. Well, seeking out the value of your property may be the first step. A property valuation will provide you with valuable information and help in making an informed decision regarding your home. This does not mean you have to sell right NOW, but staying up to date with the value of your property is important for future planning.
While a property valuation is provided by a registered Property Valuer, a market related assessment is provided by a professional real estate agent. A real estate agent can provide a thorough and accurate assessment for free, whereas a Property Valuer will charge you to provide the service.
In this article we will cover:
- How a market related assessment is determined
- Who carries out an assessment on your home
- How often should one receive a market related assessment
- The advantages of a market related assessment
- highlights the strengths and weaknesses of your property
- communicates ways in which to improve your home
- provides you with a list of comparative homes for sale
- concludes the value of your home in monetary terms
- advises you on whether to sell now or wait - The difference between market value and selling value
How a Market Related Assessment is Determined
To determine the value of one's property or home, the real estate agent needs to firstly, consider the most recent selling price of similar properties in the area; secondly, consider the previous selling price of the property being evaluated (even if such was 10 years ago), what condition the property is currently in and lastly, in which area the property is situated.
Adri Marais, Communication's Manager at Louw & Coetzee Properties, recommends having a yearly assessment "so that homeowners will always be informed on the value of one of their biggest investments, if not their only investment."
Who Carries out an Assessment on Your Home
We recommend you seek out the expertise of a full status estate agent, as you will receive an assessment from a trained, informed and experienced agent. At Louw & Coetzee Properties, our agents are well trained and have multiple quality resources at their disposal in order to provide you with a market related assessment report that is accurate.
How Often Should One Receive a Market Related Assessment
According to Marais, she recommends homeowners receive a one at least once a year. Why? When having to make a decision regarding your home "it is less stressful because you can make informed decisions, not just the day when you need the information, but you have looked at the markets for a longer time and have stayed updated." Marais further emphasises that having "knowledge of your property and the selling markets, which changes constantly, is very important to make the best financial decisions on your property investment."
The Advantages of a Market Related Assessment
So, you're probably thinking, "what are the benefits of a property valuation or market related assessment"? We're so glad you asked...
- To highlight the strengths and weaknesses of your property
- To communicate ways in which to improve your home
- To provide you with a list of comparative homes for sale
- To conclude the value of your home in monetary terms
- To advise you on whether to sell now or wait
To Highlight the Strengths & Weaknesses of Your Property
Walking through your property, our real estate agents will be able to spot and communicate the strengths and weaknesses of the property by taking a look around, looking at the size of the rooms, quality of finishes, upkeep of maintenance, accommodation offering, security, to name but a few. The agent understands what current buyers are looking for and which features of your home will be an advantage when selling.
For example, modern hard-wood floors and sleek built-in cupboards are a definite feature when selling your home. On the other hand, the two bathrooms that have not been renovated since the 1980's may be what pushes your marketing price down, (consider that in an outdated property, a buyer will have to incur some costs to update the property).
To Communicate Ways in which to Improve Your Home
Once scoping your home, our agents will provide you with ways in which to improve your home. Marais comments that having a valuation can assist in the decision "to add value to your home through home improvements or if it would rather be in your best interest to sell or even refinance."
Something we as an agency have learnt is to use small but effective changes. You will be surprised with what a tin of paint can do to the exterior of your home or even your kitchen cupboards! Making these small changes can make your home more appealing to a larger pool of buyers, thus making it more likely to sell faster.
To Provide You with a List of Comparative Homes For Sale
In the market related assessment report, our agents will include a list of comparative houses in your area. Being able to see what features another home has to offer and how much they have been listed for on Property24 or Private Property, can paint a realistic picture of what your property can be listed for and what price it can realistically achieve in the current market.
When drawing up a list of comparative homes, the following list includes the most obvious factors that are taken into consideration:
- The size of the erf
- The size of the house (covered areas)
- The amount of bedrooms
- The amount of bathrooms
- Security features
- Garage(s)
To Conclude the Value of Your Home in Monetary Terms
The market related assessment report will, of course, also include the value of your home based on market research and the expertise of your agent. The agent will provide you with a market value, as well as a selling value. Sometimes these values are surprising as they can be way more or way less than what you thought your home was worth. As homeowners, your home has much more sentimental value to you than buyers, which is why seeking out an unbiased opinion is so important. Marais stresses that having this knowledge helps in making informed decisions about your property.
To Advise You on Whether to Sell Now or Wait
Finally, your agent will be able to advise you on whether to sell now or wait a little longer. This advice is based on current market trends. The agent providing you with a property valuation will be a specialist in your area, therefore they will know the current listings and sales that are taking place. If the market is standing still and houses aren't selling, it may be in your best interest to wait a few weeks or even months before putting your house on the market. The last thing you and your agent want is for your house to stand on the market for a long time as this can seem unappealing to a prospective buyer.
Market Value vs. Selling Value
What is the difference between the market value and the selling value? The Market Value conveys the amount the property is worth when compared to similar properties in the area. The Market Value will depend upon the market we are in. The Market Value is the price the home should sell for when the property market is in favour of the sellers (a seller's market). However, if we are in a buyer's market (this means the supply outweighs the demand) homeowners will be forced to price the home well below the perceived value to ensure the sale.
The Selling Price or Property Value is calculated by taking the factors mentioned earlier into consideration:
- Consider the selling price of similar properties in the area
- Consider the previous selling price of the home being evaluated
- Consider what condition the home and garden (if any) is in
- The location of the home
"Our daily lives change in a moment and circumstances sometimes force us to sell and move, therefore if you are updated and informed, it makes the selling process so much easier." says Marais.
Louw & Coetzee Properties offers a free market related assessment for our clients' homes or properties. To arrange an assessment, please contact our Offices!
Written by: Hayley Kellerman
Author: Louw & Coetzee Properties
