Residential property valuations: common mistakes to avoid.

Homeowners who consider selling will find a variety of valuations which can be applied; mostly a municipal valuation, two insurance valuation (current market value and replacement cost), a "desktop" valuation and an "automated" valuation. "All of these valuations are worth looking at and can help the agent and seller.  However, the only truly valid one is based on what the current market is genuinely prepared to pay for the home. When requesting a valuation, it must be stressed that a truly realistic, competitive estimate is required - one which can be relied upon as 100% accurate. It may surprise sellers that many valuations do not comply with this standard."

Director of Alexander Swart Property, Rowan Alexander warns sellers that it is salutary to be aware of the most common mistakes made when assessing a valuation:

(1)    Overvaluing: pricing above the true market value. Agents regularly over-price in order to allow room for a downward negotiation. The best and most professional agencies strive to value homes as accurately as possible and are recognised for their efficiency and honesty in doing so, resulting in the fastest sales and achieving sales within a few percent of the list prices.

(2)    Allowing emotions to influence judgements and decisions on pricing. This tends to happen especially when the seller loves his home and has put time, effort and money into improving and personalising it.

(3)    Failing to consult and study the available up-to-date data on the local and national residential property market.  This can be found on websites like Lightstone and CMA info, and are an excellent guide to prevailing market conditions.

(4)    Relying too much on unqualified opinions, dinner table talk and anecdotal evidence, including amateur estate agents who may be close friends of the seller. As in some other markets, many hearsay "facts" relating to residential property are no more than rumours, often way off the mark and totally unreliable.

Alexander cautions that It is essential for the potential seller, to take great care when appointing an agent whom he can trust and relate to. The best agents not only provide wholly accurate valuations, neither undervaluing to achieve a quick sale, nor overvaluing to allow room for negotiation but are also endowed with "emotional intelligence":  they are easy to communicate with, are good listeners and capable of creating the right impression with all clients. They will produce a well-researched Comparative Market Analysis, giving sound data-backed reasons for their opinions and valuations.

A good agent will also advise the seller on how to present his home at its best for a viewing. Some do not take this matter sufficiently seriously and consequently do not achieve the maximum possible offers.  A good agent will advise that, without over-spending, the seller prepares his home for inspection by paying attention to certain essential DIY tasks and decluttering the home and garden. This applies especially to the areas which are the home's main attractions, such as the living room, patios and kitchen.

For further information, please contact Rowan Alexander on cell phone 082 581 3116 or by email: rowan@asproperty.co.za