Can we determine true market value?

Nov 5, 2020 9:14:26 PM Share this:

Determining the true value of a property is one of the most crucial components of any transaction in the real estate industry. The entire valuation process comprises of various factors which ultimately lead to an accurate property valuation.

Is the true value of a property subjective?
Valuing real estate is a very particular process, due to the fact that each property possesses unique features, which are specific to that property; including location, erf size, floor plan and layout, as well as additional amenities. In addition, local knowledge and understanding of the market by the estate agent responsible for the valuation is paramount. An agent with an acute insight into their local market more accurately assess market value than that of an agent who does not understand the trends related to that region.

Unlike most commodities that are used quickly, the advantages of property are typically recognised over a certain amount of time. This also means that determining a property’s fair market value should take into account both economic and social trends, as well as legislative regulations and environmental factors which may affect the overall valuation; while general industry principles such as supply and demand will undoubtedly influence an individual property's value from a holistic perspective.

Although the valuation process is clinical by nature, homeowners will naturally have attached sentiments to their current property. A good real estate agent will also be able to keep this in mind to ensure that the final valuation is worth the homeowner’s while from a personal perspective.

In essence, a home is worth whatever a buyer is willing to pay and a seller is willing to accept. However, an experienced real estate specialist who works with both buyers and sellers in the current real estate market is not only able to access accurate data but also see two sides of the same coin. As a result, this insight allows them to decide best how to assess the true value of a property.

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Topics: Harcourts South Africa, Real Estate Agents, Market Value, Buying and Selling Property

Cape Town's Northern Suburbs continue to offer great real estate value

Jul 8, 2020 10:34:08 PM Share this:

In the current economic framework of the country and the effects of the pandemic on the economy, real estate in Cape Town's Northern Suburbs continue to bolster the overall Western Cape property market. We are seeing increased activity in certain regions of the Northern Suburbs and since Alert Level 3 was instituted the interest in real estate in this region has continued to go from strength to strength.


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Topics: Harcourts South Africa, Real Estate Agents, Harcourts Dunn, Corona Virus, COVID-19, Buying and Selling Property, Western Cape