Any experienced agent will tell you however that there are other factors that will affect the value of your property, which also needs to be taken into consideration. These include market demand and the condition of the property, its size and elevation, does it have a view, the state of the garden, the age and modernity of the kitchen and the bathrooms, various security features, as well as various cosmetic updates, such as the flooring, fireplaces, light fixtures, and whether the home has been painted with a fresh coat of paint for example.
“Just like people often eat with their eyes, the same is true for shopping for a property – if a house looks updated, clean and well kept, and it boasts tasteful, modern decor, finishes and window dressings, then it will have a much higher commercial appeal to a much wider audience, and you may be able to enter the market with a slightly higher asking price,” advises Goslett.
The main element in determining an accurate value is current market conditions, says Goslett: “The keyword here is ‘current’. If nothing else, recent market fluctuations have shown that property can be worth one amount one day and something else the next. Last year, for example, residential property price growth showed dramatic changes during the course of 2010 – peaking around mid-2010 at 11,1%, and slowed down significantly to an average of 2,6% y/y in the second half of the year.”
Sebastian Shauw wrote:Last year, for example, residential property price growth showed dramatic changes during the course of 2010 – peaking around mid-2010 at 11,1%, and slowed down significantly to an average of 2,6% y/y in the second half of the year.”Hi Sebestian
I take it those figures are a snapshot of how South Africa as a whole has performed. What’s the deal with individual areas? Which states are performing best/which are performing worse? What’s the average purchase price for a property within these areas?
I spent some time in South Africa a few years back and would be very interested to hear, in ballpark terms, how much property is worth.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Quick Area Review:
Cape Town is one of the world’s most magnificent cities, boasting wonderful, clean and safe suburbs. Most areas in and around Cape Town are a good option, have a large selection of houses for sale, and are in general considered safe and secure to live in. Few places in the world can beat the charisma that Cape Town offers to many, including international tourists.
The West Coast of South Africa offers an idyllic existence if you are searching for a smaller place to settle down in. Little towns such as Yzerfontein, St Helena Bay and Churchhaven offer the kind of lifestyle that dreams are made of.
The little towns found in the Karoo, such as Beaufort West, Britstown, Colesberg, Hanover and Laingsburg are only a few mentioned here, frozen in time, with the townsfolk living life at a sedate and slow pace.
Port St. Johns on the Transkei Wild Coast, the exquisite Garden Route, and Cape St. Francis close to Port Elizabeth, Durban and the West Coast of South Africa are all options that one should look at when searching for that perfect house for sale.
Johannesburg and Pretoria offer job opportunities, but when looking for quality and a little piece of Heaven, then look a little father afield, as you might be pleasantly surprised.
Sebastian Shauw wrote:Port St. Johns on the Transkei Wild Coast, the exquisite Garden Route, and Cape St. Francis close to Port Elizabeth, Durban and the West Coast of South Africa are all options that one should look at when searching for that perfect house for sale.Hi Sebastian
Thanks for the reply.
The Transkei is a beautiful place – I’m assuming you meant “East” coast of South Africa?
Why is it a good area to search for the perfect house for sale?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Sebastian Shauw wrote:Any experienced agent will tell you however that there are other factors that will affect the value of your property, which also needs to be taken into consideration. These include market demand and the condition of the property, its size and elevation, does it have a view, the state of the garden, the age and modernity of the kitchen and the bathrooms, various security features, as well as various cosmetic updates, such as the flooring, fireplaces, light fixtures, and whether the home has been painted with a fresh coat of paint for example.“Just like people often eat with their eyes, the same is true for shopping for a property – if a house looks updated, clean and well kept, and it boasts tasteful, modern decor, finishes and window dressings, then it will have a much higher commercial appeal to a much wider audience, and you may be able to enter the market with a slightly higher asking price,” advises Goslett.
The main element in determining an accurate value is current market conditions, says Goslett: “The keyword here is ‘current’. If nothing else, recent market fluctuations have shown that property can be worth one amount one day and something else the next. Last year, for example, residential property price growth showed dramatic changes during the course of 2010 – peaking around mid-2010 at 11,1%, and slowed down significantly to an average of 2,6% y/y in the second half of the year.”
I agree with you. If the condition is good , Then although it would appeal you more but if market for that particuler commodity is less then that would cause you with frustration.
If the condition of the house is good and where it is located is a factor to be looked at. But what about when The place is exceptionally great and the condition of the house inside and out is great but what would be the difference if the property is actually within the city limits and out of the city?
NEXT WEEK I AM GETTING A VALUATION FOR A PROPERTY THAT IS MOTGAGEE IN POSSESSION BECAUSE SHE IS IN ARREARS OF 38K. THERE IS A GOOD DEAL HERE FOR ME IF THE VALUATION STACKS UP, SO DO YOU HAVE ANY TIPS FOR ME TO MAKE SURE I GET THE HIGHEST VALUATION POSSIBLE? PS. SORRY FOR THE CAPS, I AM TYPING THIS ON MY PHONE AND FOR SOME REASON IT DOESNT LIKE LOWER CASE.
Hi Personal Leader,
You’re forgiven for the call caps.
Valuers are very hard to please, especially when banking lending policies are tight. They are licensed and the bank “job” is their bread and butter and will not willingly jeopardise that. I’m afraid there really not much you can do but help make sure the property is clean and tidy. But that probably won’t be much of a muchness.
Mortgagee in possession usually sold at auction because the bank would still want the most they can get from the property. It is rare for MIP to be sold on private treaty (in Sydney, don’t know about the other places). I’m happy to be corrected.
What’s the guarantee that people will not go crazy on auction day? MIP aren’t the bargain investors hope for.
I’m sorry for the sellers predicament, hopefully she gets something in the end. My heart always goes out to people who loses their house.
Take care.
Angel
I feel that the easiest and arguably most accurate method of establishing the market value of your home is to get a real estate agent to evaluate your property..
If your property is priced too high, expecting that buyers will negotiate with you, you may just miss the boat by not attracting the right kind of buyers to view your property in the first place..hope my points are correct and help u..
thanks…Hi Angel, thanks for the reply, yes it is definitely a terrible situation, I am hoping to help her out by purchasing the property, and she can stay and rent from me. It is not quite mortgagee in posession yet; but it is fairly close… That is why it is not up for auction.
Thanks Sebastian
That was an awesome read, and reinforces how much of a crucial role emotions play in people's purchasing decisions. As investors we can use this information to optimize the market appeal of our properties, to attain the best return on our investments.
On the subject of property valuation, I've been a bit curious…
- How do you value the land component of a property?
Thanks in advance!
Kong
Hi Personal Leader,
It's good that you're trying to help her. May i recommend that you use a professional valuer?
Valuation is partly subjective. It is not an exact science. It is not precise mathematics. You have good intentions but many people have been burned by their good intention. You don't want later on for her to turn around and say you've taken advantaged of her.
Get a pro to do the valuation and get her to sign a piece of paper that she agrees with the valuation. You should not put yourself in a situation where you could be accused of cheating someone or taking a battler for a song. Rightly or wrongly, when you are accused as such, it would be hard to recover – not to mention that danger of being hauled to court.
Don't leave yourself open to accusations. Be above board on this one and let the pro do the work.
Take care.
Angel
Hi All,
Talking about doing this 'above the board' and 'ethically'..
If a real estate agent sourced a property from a desparate seller who needed to sell asap. If the property was valued at, lets say, $250 000, but the estate agent said that they could get a buyer for the property alot qucker if the seller accepted an offer of $200 000 (from a potential buyer), would you clasify this as 'ethical' and 'above the board'?
Its not like the estate agent is tricking the seller, the agent is merely stating something obvious i.e lower your price, get the sale done faster.
What you guys think?
Hi RobbieP.
The scenario you presented demonstrates two realities. Offering a significantly reduced price of $200K and advising the seller it will sell faster is legal. It is legal. All information was disclosed. But is it moral?
Personally, I have never offered deliberately offer a low purchase price on account of a seller's hardship. Why? I believe in karma. I would like to think that if I ever find myself in such a bad situation, that someone would come along, fair enough to pay what I deserve.
Taking advantage of someone's dire situation will not increase my wealth significantly, but it could mean life or death for the seller.
I hope I answered your question. This is just me though… I'm not one to impose what i believe in
Angel
Hi,
Thanks for the reply.
I used to think the same way, until i dealt with alot of motivated sellers in South Africa. Alot of them were on the brink if financial disaster and were about to have their homes repossessed by banks and have their credit records tarnished.
They had properties on the market and they just couldnt sell, When they finally did find a buyer, the buyers then got declined finance and left them in a real pickle.
We would buy their property directly from them or pass it onto our investors who were able to sort them out with a cash purchase of their home.
These sellers were more than happy to break away from their debts and start over again on a clean slate and 99% of the time the sellers were extremely thankful at the fact we managed to sell their property without any delays.
We would always make sure ALL parties were happy with the deal, else we would call it off.
Regards,
RobbieHi RobbieP,
I'm glad in those instances you have determined it is life you're offering. It is important that everyone wins. We all have to earn our good karma. As everything in life, it is always the sleep test. If you go to bed at night knowing in your heart you helped someone out, then you know you have done a good thing.
Carry on, mate.
Angel
Well said angelinsydney
Short term gain for someones else's pain is far from worth it.
As for buying and renting back to original owner, having a professional property manager would be a good way of separating the relationship a little and keeping it professional to minimise the risk of sour feelings?? Third party to handle payments also takes away a link??
Just my two cents.
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