Valuation and selling price – is there a connection?

By Stephen de Stadler Managing Director Fine & Country Hermanus, Arabella and Kleinmond

As estate agents we are sometimes requested to give a professional valuation for a home. Many clients are surprised when we indicate that, as property consultants are not (generally) professional valuers, we are unable to give them a valuation. What we can and do give is an expected marketing range (or market value) in current market conditions.

A professional valuation is a calculation of the monetary value of an item, always prepared by a professional valuer. The cost valuation of a property is determined by the factual size of the erf, and the expected cost of constructing the home, based on the size, the method of construction, and the quality of finishings, both interior and exterior. Insurance companies use this valuation, escalated by inflation on an annual basis, to determine the required insured value of your home.

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