Just how do you go about understanding the meaning of the different terminologies associated with property valuations, property values, and property prices, market value and more? There are quite a few concepts that can be confusing when it comes to property valuations, property values, and property prices. If your question is, “what is my property is worth”, then here we unpack some of the sometimes confusing concepts relating to property valuations, here.
What is a property valuation?
A property valuation is something that the municipality uses to determine the property taxes to be paid as a property owner on your property. Our SA banks use property valuations to determine the value at which they would be willing to grant a mortgage bond or a home loan to a prospective buyer.
What do Seeff Properties have to say?
The property price though is the price that as a prospective seller, you could be thinking about attaching to your property when you put it on the market to sell. Seeff Properties has provided some insight into the difference between market value and market price.
Disagreeing with your property valuation
However, what your property is actually worth and what you actually sell it for are not always one and the same. Generally, you can expect to see an overall drop of around 30% between the listed price (the price you see on a property portal) and the actual sales price. One may be the market value while the other is the market price.
As a seller, you may be thinking that your property is worth a great deal more than what the actual property valuation is saying. But remember that the price you are most interested in is the price that sellers would be willing to pay for your property. Remember it’s the potential buyer that ultimately sets the sales price.
What is the wise-old adage?
The oldest saying in the book is “Price it right and it will sell overnight. Price it wrong and it will always take too long”. The best way to ensure an accurate price is to get a property valuation!
The sales price
The sales price that your buyer will offer will largely depend on the state of the market at the time. Currently in the SA market, pretty much across the country, we find ourselves in a buyer’s market. That means that there are more homes on the market than there are buyers, which places even more pressure on getting the price 100% right.
What is the market value?
This is the opinion of what a property will sell for in a competitive market at a certain point in time. Location, size, the features and the fitting all form part of this assessment and work together to arrive at the market value. The market value is also determined in relation to what other properties, similar in price; size and location are worth at the time of doing the valuation. The CMA or comparative market analysis is a useful tool to calculate accurate market value.
What is the market price?
This is the price that a potential buyer is willing to pay for your property on the open market. Remember that it is actually the seller that sets the market price for your property.
I want to list for a higher price!
You do not need a bunch of property valuations to understand the market-related pricing. More than one estate agent working on a property valuation for you will give you the confidence you may need to list your property at the right price. There are loads of property portals around that you can visit to see what the going rate is for homes in your area. This, however, is not the most accurate measure of what your asking price should be. Many if not most (I would hazard a guess that 80%) of the properties you will see on these portals are over-priced. You certainly don’t want your property lost at the bottom of the search result on page 9 for Randburg and you don’t want your property on the market ‘forever’ without selling it.
How can we help you get your property valuation?
EA Connections is all about making it easier to connect to the leading real estate brands in your area. We have worked with all of the brands for some time and each company is slightly different. Their offerings are all slightly different. The caliber of their estate agents is all different (some agencies are growing and have loads of interns, while other agencies only work with agents at the top of their game). Their flexibility to negotiate on commission will vary (but a good agent will know their worth). The service ethics for these agencies are all different. Be that as it may, EA Connections only work with top agencies because of their size, their coverage, and their service ethic. Our business is based on trust so we will not put you in touch with agencies or even brands that are not top-notch from a service or an ethics perspective.
We do make a big deal about connecting with the right brand
We are precious about which agency could or would be right for you. The reason for this is every deal is unique. Every home is unique. Every transaction is unique and remember, there are sellers and buyers who are total strangers to one another that are either selling and buying property. The process of buying a home in SA has also changed quite dramatically in recent years. Our economic climate favours first time home buyers. Banks have a bigger appetite for risk which is good news whether you are selling or buying.
Teaming up to win
This does mean that working closely with a strong estate agent at your side means that you will save yourself quite a bit of pain going through the process all alone and for the first time. Your chosen real estate partner has been there and done that. Don’t underestimate the true value of good experience in a successful, prominent agent. And, don’t underestimate the importance of getting the asking price right, it must be market-related.
How do you connect?
Simply, click here to enter your details online. We will call you to understand what you are looking for. We will connect you to the leading real estate brands in your area before the day is done.
Let us help you take the first step when you sell your property. We will connect you with a top agent from a top real estate brand before the day is done. Get your free property valuation from a respected property professional and remember that a house priced right will sell. We are here to help you sell fast and for the best price possible.