What makes an accurate property valuation?

accurate property valuation

So, what goes into preparing an accurate property valuation?  Today we unpack some of the terminologies that you will grow familiar with when you decide to sell your property.  We unpack in more detail the following: property values, property prices, market value, a market-related value, the asking price, the listing price and the sales price.  There are quite a few concepts that can be confusing when it comes to property valuations which we will unpack a little more as the journey unfolds.  If your question is, what is my property is worth, then here we unpack some of the concepts relating to what goes into preparing an accurate property valuation.  Click here to request a free property valuation.

What is an accurate property valuation?

This is an appraisal of your property that allows a seasoned estate agent to establish what a market-related price would be for your property when you sell it.

Asking price, listing price, and sales price

The property price though is the price that a potential seller will pay for your property.  The asking price is the value you attach when you list a property.  Remember there is a drop of between 20% and 30% when you sell.  Especially in the current buyers market.

Not happy 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 between 20% to 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.  We covered this in a little more detail in the Randburg property trends article.

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, features, and fittings 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 a market-related 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 buyer ultimately that sets the price.  This is the price the buyer is willing to offer when they buy your property.

But I want to list for a higher price!

No matter how many valuations you get, the highest valuation is not necessarily the best one.  Don’t be tempted by what you want to hear.  Act on what you need to hear.

Often if a seller is dissatisfied with a valuation, work with your agent to determine why?  Does your property need repairs?  Do you want a 2021 price but have a 1980’s kitchen or bathroom?

It’s easy to find another agent.  But this is the trap that so many sellers fall into.  You fall in love with what you want to hear, not what you need to hear.

But, remember should you list your property above market value, you will not get enquiries.  And enquiries drive viewings and viewings lead to offers.  And, an offer leads to a sale.

Simply if your property is priced wrong, it will sit there for ages, not draw traffic and become over-exposed.  Oh, and while I am on a property becoming over-exposed this also happens when you have more than 2 or 3 boards on your pavement.  And these boards stay on the pavement for months.  Sellers and agents get frustrated and there is a great deal of wanted effort all around by all parties.

Either the property is horrible, or it’s priced wrong or you have a lazy agent.  That’s the bad news, but it’s the truth.  If it’s time to get a 2nd opinion click here to book your free property valuation now.

Let’s get you started with an accurate property valuation?

It’s all about being in the right place at the right time.  You are either in the market to sell your property or not.  Keller Williams, no matter where you are in your journey will be there for you.  Our estate agents will help you understand the current market.  Just say the word and we will assist you in getting the right price for your property understood.  You will soon understand who your competition is in terms of houses currently on the market.  We consider current market values very carefully and compare like with like.  We consider suburb reports, complex reports and street reports.  All this info gets included in a Comparative Market Analysis (CMA).  This transfer of information is transparent so you know exactly how we got to the numbers we will present in your valuation and CMA.  Click here to request a free property valuation.

We are the biggest and we are the best!

Simply, Keller Williams is the franchised largest real estate brand in the world.  We are by all accounts the fastest-growing franchised estate agency in SA.  With almost 1,500 estate agents working under the various market centres (Keller Williams Select, Keller Williams Eden, Keller Williams Clockwork, etc) all our market centres, leadership and agents join forces to sell your property.  If you are thinking about selling your property we can most certainly help.   The good news is that we have almost 1,500 agents who will help you sell your property.  And that’s with 1 board on your pavement. Keller Williams is all about creating a win-win solution for all our stakeholders across the value chain or the deal is off.  Keller Williams is also able to boast internationally about leading the curve in terms of training, be that local or international.  Click here to book your valuation. 

We are the biggest and we are the best!

Simply, Keller Williams is the franchised largest real estate brand in the world.  We are by all accounts the fastest-growing franchised estate agency in SA.  With almost 1,500 estate agents working under the various market centres (Keller Williams Select, Keller Williams Eden, Keller Williams Clockwork, etc) all our market centres, leadership and agents join forces to sell your property.  If you are thinking about selling your property we can most certainly help.   The good news is that we have almost 1,500 agents who will help you sell your property.  And that’s with 1 board on your pavement. Keller Williams is all about creating a win-win solution for all our stakeholders across the value chain or the deal is off.  Keller Williams is also able to boast internationally about leading the curve in terms of training, be that local or international.  Click here to book your valuation. 

Get in touch and get an accurate property valuation

So, if you need a valuation done on a property in Randburg or elsewhere in SA, I can help.  Give me, Sandy Graham a call or send me a WA to (083) 550-1220.  Alternatively, drop me an e-mail at sandy.graham@kwsa.co.za.  I have a vast network of almost 1,500 top Keller Williams agents at my fingertips who are all just dying for the opportunity to partner with you to sell and conclude your property transaction in record time.

If you want to view all the Keller Williams properties across the country click on our website to start the search for your dream home.

Bet on Red.  You will not be sorry.

Property Advice

Need to read up on more articles that you may find valuable, be sure to read through some of our content and advice:

Property Trends

Property valuations

Homeowner Tips

Get Pre-Approved Finance

Property Transfers and conveyancing