Property valuation: How to determine the value of your home

Whether you’re a buyer or a seller, knowing the value of a property is an important step in the negotiation process. Here’s a guide to property valuation.

Article summary

Whether you are looking to buy or sell, knowing the value of a property is an important step in the negotiation process. As such, it helps to know what factors play a role in property valuation.

There is a process involved, and being knowledgeable of it means you don’t have to “guess” the value of the property based on superficial elements

How is a property valued?

The primary factors that professionals use to value a home include:

These are quick and easy guidelines, but as any professional will tell you, there are a number of other factors that can also play a role, such as:

Conducting a property valuation

Here are some ways to value a property:

Hire an estate agent

It’s always best to go to a professional. Estate agents can provide a CMA (Comparative Market Analysis) which will take into account market forces along with the value and selling price of other properties in the area.

Estate agents have an understanding of the property market, and the factors that play a role in property valuation. As well as providing an estimated property value, they can advise property sellers on whether they should attempt to sell above or below market value, and by what margin.

Use online valuation tools

You can use Property24 to check property trends throughout South Africa. This tool allows you to see the seasonal and long-term changes in property prices and sales throughout the country.

Simply enter the suburb you wish to analyse and you’ll see stats such as:

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