How to value your home

If you are thinking of selling your home, then your biggest concern will undoubtedly be to find out how much your property is worth and essentially what the asking price of your most prized possession should be. Personal sentiment combined with historically higher property prices have left many sellers with unrealistic expectations regarding the true value of their home. However, in the current economic climate where the average number of days it takes to sell a property has increased from 30 to 160 days, the house that is valued accurately is the house that ultimately gets sold.

What this means, is that the seller will need to undertake the task of obtaining an accurate valuation of their home in order to determine the potential sale price in the current marketplace. Due to the fact that property valuations can be a complex and difficult process, using an estate agent is highly recommended as they are often in the best position to gauge how much your property can or should sell for.

“Although an agent cannot tell you what the market value of your home is, they have the experience to interpret what the market it accepting in comparison to what is available. Although the seller has to ultimately decide how much they want to market their home for, a knowledgeable and reliable estate agent should be able to provide facts that will assist in the decision making process,” explains Jan Myburgh, General Manager of Harcourts Real Estate (SA).

He continues, “The value of one’s home is dependent on how potential buyers perceive its worth in comparison to similar properties on the market”.

Comparative Market Analysis (CMA) is an accepted method that is accurately used to inform sellers. An estate agent will use this method to reach a market value, which incorporates the strength of the local market, demand and supply forces, and the sale of other similar properties in the local area. “CMA will help to determine how much people are willing to pay for a particular type of property and will assist the seller in making an educated decision when it comes to their asking price. This is especially important when people are in a hurry to sell,” says Myburgh.

Valuations will only ever be a guide to how much a property might eventually sell for. “To maximise your chances of getting the very best price for your property, sellers need to make sure that they use a reputable estate agent – someone who knows the area well, has a good track record in terms of the average number of days it takes to sell properties, and is actively working in the area”.

Harcourts is a national franchise of real estate agencies specialising in the sale and rental of residential, commercial and rural properties. With its Head Office based in KwaZulu Natal, Harcourts is a member of Leading Real Estate Companies of the World® which forms the world’s largest Real Estate network with over 5,500 offices and 160,000 sales consultants operating in over 25 countries.