Cape Town property valuations are coming

Cape Town property valuations are coming

Category News

Do you know what your property is really worth?

We are heading towards a new round of property valuations for the City of Cape Town. This is an important matter for the city who would want to look at earning higher taxes from property owners and in many instances, may look to set your property value at the upper end of the price scale.

Property owners on the other hand, would want to ensure that their property is not overvalued as this will cost them, nor would they want their property to be undervalued which might become problematic if they wish to sell. If your property is overvalued, you might suddenly find that a bank will not grant a mortgage loan sufficient enough to enable the sale. You therefore need to ensure a fair balance.

If you decide to sell, you will be looking to set your market price at a rate which is inevitably higher than the market value for a number of reasons. Market value is for example generally based on historic data while sale prices will be more current and forward looking.

What is the market value?

Market value is an opinion of what a property would sell for in a competitive market based on the features and benefits of that property (the value), overall state of the property market, supply and demand, and what other similar properties have sold for in the area, street or complex.

What is the market price?

The market price is what a willing buyer will pay in the open market for the home. In an ideal property market, buyer competition would usually drive up selling prices. This in turn will at some future municipal assessment phase, again influence the market values that the local council attach to the property and so the cycle continues.

What is my property really worth?

When it comes to selling, you will often find that sellers use online property portals or other properties on the market to inform their price expectations. It is important to know that it is not asking, but actual selling prices, which determine the correct market price for a property.

In most areas, there is no one-size-fits-all approach to market value and price. This is where a skilled area agent makes the difference as he/she keeps their eye on the market and on the selling prices in the area.

A Comparative Market Analysis (CMA) is generally regarded as the most accurate tool to use to determine a property’s value. This analysis takes into account information and statistics gathered from various sources which is compiled together to find an average price per square metre of property in the area. This takes into account recent sales, but then needs to be balanced against other factors such as the condition of the property, its size, features, finishes and fixtures and other aspects that sets it apart from other properties in the area, street or complex.

Home is our Story and property our passion. With a demonstrable track record of sales success, Seeff agents know the market and how to determine the value of properties. As experts in your area, you are in good hands regardless of your property needs, so be sure to contact us today!

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Author: Seeff