How to determine a property’s value

When deciding on a price at which to list a property for sale, Pam Golding Properties says the following points should be kept in mind:

 

  • What you paid for your home has nothing to do with its present value.The value of the property should increase roughly by the suburb average growth rate per annum.
  • The value agents put on your property is not always accurate.Experienced and professional agents will normally result in the same or a very similar valuation. The market will determine the selling price, broadly speaking – based on location, supply and demand. Some agents may over-value a home just to get the mandate.
  • What a valuator says your home is worth doesn’t determine the price in the market.Bank valuators look at area statistics they source from the Deeds Office, but they have not seen the condition or finishes of those houses and the reasons why a house may have sold for less than the current market value.
  • Property search portals require the user to enter a price range to narrow down their search options, so if the asking price is R755 000 and the buyer’s price range is from R700 000 to R750 000, the home will be missed.By listing the property at R750 000 it will stand a far greater chance of capturing potential buyers in the ranges above and below the asking price.When taking into account the prices of homes sold in your area, base your assessment on the actual price achieved and not the listing price. The amount you have spent on your home or the amount you need to buy your next home is usually not relevant when pricing it.

 

Sourcewww.iolproperty.co.za/roller/news/entry/how_to_determine_a_property