Resources

Property Valuations Explained

Understanding what your property is worth — and how that figure is determined — is fundamental to making smart decisions as a buyer, seller, or investor.

Types of Property Valuation

Market Valuation

A professional assessment of what your property would realistically sell for in the current market. Conducted by a registered property valuer or experienced estate agent using comparable sales data. This is the most relevant figure for sellers.

Used for

  • Setting an asking price
  • Pre-sale preparation
  • Estate planning
  • Divorce settlements

Municipal Valuation

The value assigned to your property by your local municipality, typically updated every four years. Used to calculate your rates and taxes bill. Municipal valuations often differ significantly from market value — sometimes higher, sometimes lower.

Used for

  • Calculating rates & taxes
  • Lodging a valuation objection
  • Understanding your rates bill

Bank (Bond) Valuation

When you apply for a home loan, the bank appoints an independent valuator to confirm the property's value. Banks typically lend against 80–90% of the valuated value, not the purchase price. If the bank values the property below the purchase price, you may need to fund the shortfall in cash.

Used for

  • Home loan applications
  • Refinancing existing bonds
  • Equity release

What Affects Your Property's Value?

Location, location, location — suburb, street, and proximity to amenities
Stand size and zoning rights
House size (floor area) and number of bedrooms and bathrooms
Age and condition of the property
Quality of finishes, renovations, and upgrades
Outbuildings, garages, and additional structures
Recent comparable sales in the immediate area
Current market conditions and interest rate environment

Common Questions

How often should I get my property valued?

For sellers, get a fresh valuation every 12–18 months or before listing. Market conditions shift, and an outdated valuation can lead to mispricing.

Can I dispute my municipal valuation?

Yes. Each municipality runs a formal objection process during the valuation roll review period. You typically have 30–90 days from notification to lodge an objection with supporting comparable sales data.

What's the difference between valuation and appraisal?

In the South African context these terms are often used interchangeably. A formal valuation is conducted by a registered professional valuator; an appraisal is typically an informal estimate provided by an estate agent.

Does Bracha Homes offer formal valuations?

We connect sellers with registered estate agents who provide free market appraisals. For formal registered valuations (required for legal and financial purposes), we can refer you to registered property valuators.

Get Expert Advice

Thinking of selling?

Connect with a verified Bracha Homes agent for a free market appraisal of your property.

Request a Free Appraisal